New Port Construction Contracts Signed

The Falkland Islands Government (FIG) is pleased to announce the signing of key contracts marking a major milestone in the delivery of a new port facility for the Falkland Islands, a critical project that will replace the ageing FIPASS structure and play a vital role in the Islands’ economic future.

Damen Civil and Modular Construction BV (Damen) has been contracted to:

• Design and build four new barges and associated marine infrastructure forming the principal components of the new port’s marine-side facilities;
• Transport of the new barges and infrastructure to the Falkland Islands; and
• Install the new marine facility, including the removal and decommissioning of the existing FIPASS structure.

RSK (Falklands) (RSK) has been contracted to construct a new access road, causeway and associated landside facilities for the new port.

The total value of the contracts that have been signed is £109m. This is not the total cost of the project, as there are additional elements such as the transport of the barges to Stanley, the scuttling of the current barges (if this option is preferred after decommissioning) and the fuel pipeline still being finalised, but it represents the vast majority of the cost.

The need for modern, reliable port infrastructure in Stanley has long been recognised. Over the past two decades, numerous studies and reports have confirmed that the port is an essential enabler for the Falkland Islands economy, forming part of its critical national infrastructure and underpinning both traditional industries and emerging opportunities.

The new port facility will deliver a range of benefits, including:

• Sustaining the fishing industry, which currently generates over £50 million per year in licence fees and tax revenues;
• Increased capacity to tranship fish and squid, providing opportunities for improved added value to the fisheries industry and improved catch verification.
• Supporting the ITQ (Individual Transferable Quota) policy goals of encouraging greater local economic participation by supporting domestic containerisation and transhipment services;
• Enhancing tourism opportunities, by allowing larger expedition and cruise vessels to berth directly alongside, improving passenger experience and increasing visitor exchanges;
• Supporting trade and supply chain resilience;
• Providing capacity for future growth, with studies showing a clear trend of increasing vessel numbers and size across all sectors that rely on the port.

Originally installed as a temporary solution, FIPASS has served the Falkland Islands well but is now reaching the end of its operational life. Engineering surveys confirm that the facility cannot be reliably maintained beyond 2028. The replacement port has been designed to ensure that it meets the needs of both current and future users for at least a 50-year lifespan.

The new port facility will consist of four 90m barges, similar in design to the current ones but with bespoke elements, such as a shallower draught, to suit the specific site. Combined with the linkspans, the new facility will total 400m of berthing face and enhanced operational space. The access road and causeway will be to the western end, designed to facilitate efficient movement of goods, vehicles and people.

FIG remains committed to the timely completion of the port replacement project, with the original timeline for the replacement barges, causeway, and access road remaining on track for completion in 2028.

FIG Chief Executive Dr Andrea Clausen said: “A new port is a critical enabler for our future economic growth and development. The signing of these contracts is a major milestone for the Falkland Islands that moves this long-awaited, and much needed, project closer towards its delivery”.

Commenting on the announcement, the Falkland Islands Fishing Companies Association said: “FIFCA welcomes the signing of the agreement between the Falkland Islands Government and its partners for the design and build of the new port facility in Stanley Harbour. This marks a key milestone in ensuring that our community is supported by a modern, fit‑for‑purpose facility, a crucial element in the Islands’ economic development. The increased capacity the new port will bring will be of significant benefit not only to the fishing industry but to the Falkland Islands economy as a whole”.

South American Atlantic Service Limited (SAAS) added: “SAAS welcome the new port facility development plans, this will provide security to the present and future of a critical lifeline for the import and export trade of the Islands economy”.