A surprise deal that will map out a new economic future for Leith Docks has been described by First Minister Alex Salmond as “signalling the dawn of a new era,” for the port.

For more than a decade, landowners Forth Ports have been pursuing a 'mixed use' regeneration strategy on the docks which centred around the development of luxury flats, the Ocean Terminal shopping centre, and a tram connection to the airport.

But with the collapse of land values on the docks and the prospect of the Edinburgh trams ever running to Newhaven looking less and less likely by the day, Forth Ports' attention has turned to the potential for developing the port for other uses, including energy generation and wind turbine manufacturing.

Leith Docks remains Scotland’s largest deep water port, and its proximity to several proposed off-shore wind farm sites means that the port is said to be under consideration as a base by more than one wind turbine manufacturer. However, to date none have commited investment to the port.

On Tuesday, the city council debated the regeneration of the docks and rejected proposals from council officers to borrow money against future increases in business rates in the area.The money was to be used to kick start mixed use regeneration in the area based on the current development plan, but councillors demanded more information on a new “Plan B” for the area, that would reflect the more industrial uses that land owner Forth Ports has been working on.  

Now, it would seem that Scottish Enterprise have agreed to fund the research that could form the basis of that ‘Plan B.’

First Minister, Alex Salmond, welcomed the deal. He said: “This agreement signals the dawn of a new era for Leith, which will ensure that it plays a central role in supporting economic growth in the Lothians and in the wider Scottish economy. It underlines the commitment of the partners to working together to develop Leith into a 21st century port that plays a strategic role across many of Scotland's key industries.”

No-one from Scottish Enterprise would confirm how much money the government agency had committed to the project as part of the deal. But a spokesperson said: “The studies will form the basis of the future investment on the docks.”

“We work with private companies all the time and if our investment can unlock economic growth in Edinburgh and the Lothians then we’re interested in pursuing that.”

The first local councillors had heard of the deal between Scottish Enterprise, Forth Ports ltd and the City of Edinburgh Council was when STV  asked them for a reaction.

Opposition Councillor Gordon Munro who represents the Leith Ward expressed his surprise at the deal. He said: “I found the statement today astonishing. It’s something that’s just come as a bolt out of the blue.

“I am a member of the Economic Development Committee and I also received a briefing on the future of the port just last week from the Head of Planning and I knew absolutely nothing about this move.

“It just confirms to me that it’s the officers running this council and not the elected members.

“It seems indicative of the way that this council is being run. There seems to be people cutting deals behind closed doors and then they’re presenting a fair accompli for rubber stamping by the committees."

However, he did recognise that some people will welcome the deal if it leads to more jobs in the area. He said: “It’s an interesting idea, it could bring much needed jobs to Leith but I think it all needs to be fully explored. There are people who have bought into the vision that Forth Ports have trailed extensively over the last, nearly 10 years, that are going to be living in a work place. They may not be happy about this.

“There’s been an extensive consultation process involving the Leith community and I think that could still be bought back into play for any major change that’s happening in Leith,”

Previous studies commissioned by Scottish Enterprise indicate that around £35million worth of public subsidy could be allocated towards improving the docks from the National Renewables Investment Plan. However, this is only likely to be released if a major manufacturer can be persuaded to commit to investing in Leith.

The new set of feasibility studies announced today will not only focus on renewables, but also on the scope for attracting new business from other sectors such as tourism to the port. 

Charles Hammond, chief executive of Forth Ports, said: “We are delighted to be working in partnership with Scottish Enterprise and the City of Edinburgh Council on this significant project for the Port of Leith. Our ports in Scotland play a key role in supporting Scotland’s economy and this masterplan project to identify the opportunities for Leith, the largest deep water port in Scotland with over 60 hectares of portside development land, to become an even more important transport hub is exciting.

“I am confident that not only will we identify ways in which existing users of the Port of Leith will be able to grow their businesses, but also that we can attract early investment from the growing renewables industry as well as other key industries, including tourism.”

The city's Economic Development Leader, Tom Buchanan also welcomed the deal: "The Waterfront is a key investment zone for Edinburgh's future growth. The Council recognises the importance of the public and private sectors working together to deliver ambitious plans for the city and I am delighted we now have such a strong partnership to develop this area."

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