MEMBER NEWS: Major expansion buoys Port of Aberdeen to record financial results

May 14, 2024
MEMBER NEWS: Major expansion buoys Port of Aberdeen to record financial results

Port of Aberdeen, the UK’s oldest existing business, today (14 May 2024) announces a record-breaking financial performance for 2023, buoyed by the opening of its transformational South Harbour expansion.

The major development attracted significant new business in energy, trade, and tourism, North Harbour maintained robust oil and gas and ferry revenues, and property rentals operated at 79% occupancy levels.

2023 financial highlights:
• Turnover increased to £45.9 million, up 17% from 2022
• Operating profits increased to £25.7 million, up from £21.3 million
• Vessel arrivals increased 2% to 6,948
• Vessel and cargo tonnage increased 6.5% to 29.5 million tonnes
• Ferry passenger numbers increased to 179,166, up 11%
As a Trust Port, all profits are reinvested into the port’s development, directly benefiting its stakeholders.

Bob Sanguinetti, CEO, Port of Aberdeen, said: “South Harbour was pivotal to delivering a record financial performance in 2023 as we welcomed large jack-up rigs, cargo vessels and cruise ships that would have previously sailed by the city. Our focus now turns to consolidating business with existing customers and securing opportunities to further diversify and grow in energy, trade, tourism.”

The port made significant progress on its journey to become the UK’s first net zero port by 2040, cutting its Scope 1 and Scope 2 emissions by 24% compared with the previous year. Aberdeen was also the only UK port to feature in three of the ten projects in the Department for Transport’s inaugural Zero Emissions Vessels & Infrastructure (ZEVI) competition.

The financial results were accompanied with a call for further support from the public and private sectors to achieve the full potential of the expanded port, which could support 17,500 jobs and contribute £2.4 billion Gross Value Added.

Mr Sanguinetti, said: “We have invested almost half a billion pounds to ensure Aberdeen is world-class port that creates prosperity for generations. As the energy transition gathers pace, further partnership with government and industry can drive the nation’s economic growth and decarbonisaton.

“Floating offshore wind was in its infancy when the South Harbour expansion was planned. Today, with 17GW of projects approved off Scottish coasts, Aberdeen can become a leading hub for the assembly, integration, and maintenance of turbines. By upgrading this strategic asset, including a capital dredge project, Port of Aberdeen will support the transition of jobs and skills from oil and gas to renewables for decades to come.

“Decarbonising ports and shipping is a significant challenge with no single solution. Through our net zero strategy, backed by up to £55 million of investment, Aberdeen has a pivotal role to play. With further support, we can roll-out shore power across the port and accelerate collaboration on infrastructure for future green fuels. Incentives, investment, and supportive legislation will ensure that Aberdeen, along with ports across the country, can play their part on the road to net zero.

“Thanks to the foresight of our predecessors and the dedication of our port team, we are ideally positioned to partner with our public and private sector partners and compete for these transformative opportunities that will benefit Scotland and the wider UK economy.”

 

Get in touch

AREG is the original energy transition organisation, working on behalf of members to empower the energy supply chain and champion its expertise. Please get in touch if you have any questions or would like to find out more about membership.

AREG has played an important role in the growth of Scotland’s renewable energy sector, engaging the supply chain and developing the European Offshore Wind Deployment Centre. However, we are only at the very beginning of the transition that AREG was established to both lead and support so there are still opportunities for companies to get into the constantly evolving renewables supply chain. We look forward to continuing our work together as renewables builds on its place as Scotland’s main source of power, and as we seek to deliver real change in the crucial areas of heat and transport.

Scottish Renewables

Aberdeen & Grampian Chamber of Commerce has worked closely with AREG since its formation. The recent progress in the developments of offshore wind projects by Equinor and Vattenfall are as a result of the work of the group over many years. The north-east is known as the oil and gas capital of Europe. At the Chamber, we believe the region must evolve its position to being recognised as the energy capital. Whilst hydrocarbons will continue to be essential in driving our economy for years to come, the generation of renewable resources will play an increasingly important role in providing cost-effective power, innovative development and economic growth.

Aberdeen & Grampian Chamber of Commerce

The enthusiasm and dedication of the early group that would become AREG was fundamental in us choosing to launch All-Energy in Aberdeen. The first tiny show was held in 2001, and AREG’s Chairman at the time, Jeremy Cresswell, played such an active role that I often describe him in terms such as All-Energy’s ‘midwife’. All-Energy is now the UK’s largest renewable and low carbon energy exhibition and conference in terms of number of attendees, space booked, and number of exhibiting companies. As AREG became firmly established, their presence and support for the event grew spectacularly over the years. We thank them most sincerely for their invaluable input.

All-Energy

Vattenfall has forged a strong working relationship with AREG through the development of the European Offshore Wind Deployment Centre. AREG has worked tirelessly on behalf of the North East and it can take enormous credit for the growth of sustainable energy in the region and the path it has cleared for the region to capture further investment.

Vattenfall

Aberdeen City and Shire is emerging as a key location for renewables by successfully transferring its world-class oil and gas expertise into the sector and AREG has done much to advance this through a broad range of initiatives. It has acted as a catalyst in driving further investment in the local economy by engaging with companies, Government, public bodies and existing projects and we have been pleased to support their efforts. Scottish Enterprise will continue to engage with AREG as we increase Scotland’s use of renewable energy.

Scottish Enterprise