Forth Ports warns docks plans will stall without injection of public cash

THE development of parts of Leith Docks faces significant delays unless the project wins public funding, the company behind the regeneration of the area warned today.

Forth Ports wants to push ahead with creating facilities for a ferry crossing between Fife and the Waterfront. It also wants to create a waterside walkway behind Ocean Terminal featuring shops and restaurants.

The company has now applied for funding from an innovative city council scheme in a bid to kick-start the infrastructure works, and it warns that, without the money, the plans would have to be halted.

Charles Hammond, chief executive of Forth Ports, said: "You wouldn't consider those types of works (in the current climate] if it wasn't publicly funded.

"A lot of work is going on and we're hopeful of a positive decision in the future."

The company wants to start the work on the cross-Forth ferry terminal even though no firm has yet come forward to commit to running the service.

Mr Hammond believes that finding an operator will be relatively straightforward, but only once the infrastructure works are completed.

"Essentially, we want a crossing between Fife and Ocean Terminal, then people could get off the ferry and on the tram and get into the centre of the city," he said. "It would be a very good sustainable transport measure.

" Stagecoach ran a trial last year, but at this stage we are just looking for the enabling infrastructure.

"You would hope and expect that if the route is viable an operator would be interested in linking between Fife and the Waterfront in Edinburgh."

Forth Ports has been under pressure as a result of the economic downturn, which has led to a huge writedown on the value of its land.

The city council recently said it would be willing to pump £50 million into the Waterfront area to kick-start development.

A "tax incremental financing" scheme, popular in the United States but untested in the UK, would see the council borrow the money against a projected increase in business rates from firms that are brought to the Waterfront as a result of the infrastructure work.

Forth Ports is now in talks about getting its hands on some of the funds that are available under director of city development Dave Anderson's scheme. He recently told the House of Commons all-party committee on urban development: "By seeking to raise only £50m from potential incremental tax flows of £311m, we believe this approach is prudent and workable."

Councillor Tom Buchanan, the city's economic development leader, said: "In the current economic climate it's very encouraging to see a developer looking at innovative funding options to ensure necessary infrastructure can be built.

"We are happy to be working with Forth Ports and the Scottish Government to continue to drive this major project forward."