THE man in charge of Scottish Canals has highlighted the rich potential offered by the continued regeneration of Scotland's historic waterways, describing the publicly owned organisation as a "dynamic little business operating in the middle of government".

Andrew Thin held up The Kelpies and the Falkirk Wheel as high-profile examples of what can be achieved by investing in projects alongside the canal network.

The Kelpies, the mythical water-borne creatures designed by sculptor Andy Scott, were projected to attract 350,000 visitors in the year to April, its first 12 months of operation. But the attraction has already smashed that target by welcoming in excess of 900,000 to date.

And in spite of being around for 15 years now, the Falkirk Wheel continues to go from strength to strength, having attracted a record 500,000 visitors last year.

However, Mr Thin said the potential of the centuries old Scottish Canals network runs deeper than building major tourist attractions.

He said: "These are big volume visitor attractions, and the key to both assets is the tremendous commercial opportunities that then grow up around them for other people, including Scottish Canals itself.

"These are big assets but I think it is worth highlighting [that] the canals themselves are real estate that happens to be wet.

"We have got a huge programme, particularly if we can raise enough investment capital, to invest in infrastructure to enable floating restaurants, houseboats, and offices to be developed, particularly in central Scotland but in all parts of the system."

Mr Thin describes Scotland's canal network as a "fantastic collection of publicly owned assets", some up to 300 years old. They include the Forth and Clyde and Union canals, which overlap at the Falkirk Wheel, and the Crinan Canal stretching through Argyll from Loch Fyne to the Kintyre peninsula.

Mr Thin said the transfer of ownership of the canals to Edinburgh from London in 2012 has "created a new set of opportunities which simply weren't there before". He said: "The biggest asset I think is the property corridor between Edinburgh and Glasgow and the Forth [and Clyde] and Union canals across central Scotland. It's partly the property alongside the canals, but the canals themselves are real estate, like any other.

"Secondly, the company owns the Caledonian Canal at Fort Williams and Inverness, which again is a hugely important tourism resource for Scotland. And the Crinan is smaller but still very significant."

Mr Thin highlighted Fountainbridge in Edinburgh, now home to a flourishing house boat community, as an example of how investment by Scottish Canals and partner investors can have a powerful regenerating effect.

He said: "To me, this idea of an business operating within government is intriguing, because it enables those kind of partnerships to be put together that would be very difficult otherwise."

He added: "The long term goal is making the most of the assets for everybody, not just one or two high profile things, and to make sure the company is increasingly self-sustaining in terms of its income generation."

Scottish Canals, which is headquartered in Glasgow, is currently looking to boost its six-strong board with two further non-executive appointments.