OIC committee hears of oil port losses

A report in to the finances of the Scapa Flow Oil Port made stark reading for councillors yesterday afternoon.

According to the report before members of the development and infrastructure committee, the port made a net trading loss of £1,683,000 for the financial year 2012/13, following on from a loss of £1,451,000 the previous year. This was due to a 25 per cent reduction in Flotta tanker movements over the reporting period compared to 2011/12.

Councillors also heard there were no oil related ship-to-ship (STS) transfers in the last financial year, primarily due to the council’s current policy on the discharge of ballast water in Scapa Flow and a downturn in the market. STS revenues were therefore recorded as zero, compared to £30,310 in 2011/12.

However, with a new North Sea oil field coming into production next year which should see an increase in tanker movements at Flotta, there was some cause for optimism.