Main contractor for £350m expansion of Aberdeen South Harbour pulls out

The key contractor behind the £350 million expansion of Aberdeen's south harbour has pulled out of the project.

Aberdeen Harbour Board has confirmed Dragados UK will withdraw from the site on Monday June 15, and wont have any further hand in the development. 

It comes just days after the centre insisted the Spanish-owned company remained a principal contractor, despite putting a contract to complete unfinished work out to tender. 

But in a letter, AHB chief executive Michelle Handforth referenced "significant challenges" due to reduced operations resulting from the coronavirus crisis and low oil price.

She said: “This year’s summer season was of critical importance to the Aberdeen Harbour expansion project, as we endeavoured to complete a series of major construction milestones and continued to address the rock removal challenges first identified in October last year.

“The interruption to the schedule as a result of the Covid-19 emergency has had the effect of greatly compounding those existing challenges.

“It is too early at this stage to confirm what impact this will have on the construction timeline, especially given current Covid-19 restrictions, but the intention for a phased opening, when safe to do so, remains unaffected”.

A spokesperson for Dragados UK said the contractor was “proud of the progress achieved with this project, adding: “The Covid-19 emergency and other factors have meant that our involvement in the project has ended earlier than originally anticipated.

“We wish the project every success as it progresses towards completion.”

In line with Scottish Government Guidance, activities on site are currently restricted to essential site protection works, safety and security measures.​