In this week’s SME Focus we hear how an entrepreneur is bringing fresh life to a marina formerly run by City of Edinburgh council through a costly upgrade in an area where the closure of the Forth Bridge is posing challenges for businesses.

Name:

Russell Aitken.

Age:

43.

What is your business called?

Port Edgar Holdings Ltd.

What does it produce, what services does it offer?

We operate a 300 berth marina hosting a full range of marine services, including a ships chandlers, boat sales showroom and engineering workshop. We are also home to Scotland's largest watersports centre.

Where is it based?

Port Edgar Marina, South Queensferry, near Edinburgh. The marina is a former Royal Navy base located on the Firth of Forth between the Forth Road Bridge and the new Queensferry Crossing.

Queensferry is very much open for business and easier to access than many appreciate in spite of the closure of the Forth Road Bridge (after a crack was discovered on it earlier this month).

However, the impact of the closure is going to be devastating to the local economy. I am a director of the local Business Improvement District, Queensferry Ambition, and many of our members are already reporting a loss of business.

We have certainly noticed that trade is down in our own retail shop. At our annual Sale last weekend the footfall was significantly down on the same weekend last year, so much so that we have decided to extend the Sale. Like so many other businesses on the south side of the river, we are also experiencing problems getting our Fife-based staff to and from work.

Whom does it sell to?

Watersports enthusiasts of all ages. The majority of our marina berth holders live in the central belt, but many of our boat sales and workshop customers come from further afield and keep their boats on Scotland's lochs and islands. During the summer months we also welcome a number of larger visiting yachts, from continental Europe and beyond. The marina also caters for commercial vessels including Police Scotland, the tour boats Maid of the Forth and Forth Belle and a number of pilot boats and small passenger ferries.

What is its turnover?

£ 2.25 million.

How many employees?

22.

When was it formed?

The marina was formed in 1979 when ownership of the site transferred from the Ministry of Defence to Lothian Regional Council. We have been a tenant since 2007, operating a marine engineering and retail business from the site, finally taking full control of the marina in April 2014.

Why did you take the plunge?

Edinburgh Leisure, who had been managing the marina on behalf of the City of Edinburgh Council for a number of years, put the site on the market, and after lengthy negotiations, we won the tender to become landlord. Having previously worked at marinas in the UK and overseas, I felt that, despite our spectacular waterfront location, Scotland's capital did not have a marina to be proud of. I recognised the great potential at Port Edgar, but years of under-investment in the site and infrastructure meant that we were falling short of visitor expectations.

What were you doing before you took the plunge?

I learnt to sail in my late 20's, and quickly realised that this was something I wanted to pursue as a career. Initially I crewed on yacht deliveries, building up my sailing experience before gaining the qualifications to work as a professional skipper and instructor. Prior to moving to Port Edgar, I was managing a yacht charter business and sailing school for a large holiday company.

How did you raise the start-up funding?

Having negotiated a long lease for the marina, we were able to secure funding from HSBC to carry out the first phase of the re-development of the site. The key element was a capital dredging programme to remove years of built up siltation in the marina basin, without which the future of the marina would have been unviable.

What was your biggest break?

In 2010, we managed the take over of our closest competitor, Forth Yacht Marina Ltd based in Grangemouth. This led to us gaining the dealerships for a larger range of boats and marine engines. However, rather than having to invest immediately in a much larger stock of boats, we were able to act as brokers, selling on a commission basis. We also aquired their engineering business, which included mechanics and technicians with many years of marine experience - skills that are difficult to source.

What was your worst moment?

The financial crash in 2008: we had only been in business for a matter of months when the recession hit. Those first couple of years were a struggle, but we managed to continue without losing any staff and now in 2015 we are looking at a very positive trading year.

What do you most enjoy about running the business?

It's great to finally be the masters of our own destiny after years as a tenant with very little security of tenure. I also enjoy the diversity of the job, as the marina is a small community of different businesses all with unique traits.

What do you least enjoy?

A large part of the reason I chose to work in the marine leisure industry was to avoid being stuck in an office. Inevitably as the business has grown, I find myself more and more desk-bound.

What are your ambitions for the firm?

Our vision is to make Port Edgar Marina a visitor destination with a much broader appeal than solely for watersports enthusiasts. We intend to create an enhanced retail and food and drink offering, as well as capitalising on our unique location overlooking three world recognized bridges. It is also important that the marina continues to be a centre of excellence for marine trades, and that we work towards the '5 Anchor' standard for our berth holders.

What are your top priorities?

Our top priority is to build a new licensed restaurant and yacht club building - we are in the process of agreeing terms with an operator and we aim to have the new facility open for the end of 2016, to coincide with the opening of the new Queensferry Crossing. We are also in the process of upgrading the existing retail units on the site, to provide new shop space for both ourselves and additional new tenants. We are investing in skills and training - having taken on a new engineering apprentice under the Modern Apprenticeship scheme. We are also continuing with phase two of our masterplan development, creating a new car park area for an additional 100 cars and landscaped pedestrian routes around the site with viewing points to the Forth bridges.

What single thing would most help?

The continued support from City of Edinburgh Council, who have bought in to our vision for Port Edgar, allowing us to fulfull our commitment to the £2m plus upgrade of the facilities..

What could the Westminster and/or Scottish governments do that would help?

At present I think that very little tangible help is given to the marine leisure sector, which is already estimated to contribute over £100m to the economy. However, The Scottish Government has recently set up a specific Marine Tourism Strategy Committee which will promote growth.

What was the most valuable lesson that you learned?

Treat you staff well and they will treat your business well.

How do you relax?

It may be a busman's holiday, but I still get great enjoyment out of messing about in boats. My wife and two young daughters do not really share this passion, so weekends away are often spent exploring in our campervan.