A £223,000 (pounds) investment in a new ice plant on Oban's South Pier will secure the harbour's status as a designated landing port and greatly enhance the services available to the local fishing fleet and visiting vessels.

Oban Port Users Limited say work will start on the new facility next month with the ice plant expected to be operational by the mid-May, providing the 24 hour service demanded by the fishing industry.

Argyll and the Islands Enterprise (AIE), part of the Highlands and Islands Enterprise (HIE) network, are backing the project with assistance of £110,000 (pounds) including £55,000 (pounds) from the EU PESCA programme which directs help to communities reliant on the fishing industry.

With the establishment of the new ice plant at the South Pier, local fishermen will have a constant and reliable service and will no longer have to order ice in advance from Tarbert, sixty miles away, as was sometimes the case with the old plant.

The building of this facility will ensure that all fishing activities in Oban will be located at the South Pier, as has been planned since the 1980's, and the existing, dilapidated ice plant located on the Railway Pier can be demolished. One new job will also be created, as the number of employees rises from three to four.

Oban Port Users Limited, who provide a wide range of services for local fishermen, say they are delighted to be able to go ahead with the new ice plant. Managing director. Peter Tosh, said: "The Oban fishing fleet could not rely on the old ice plant and having to order ice from Tarbert was extremely impractical. The new plant is not only in a better location, but it will considerably enhance the service we offer to Oban fisherman, visiting vessels and local fish farms."

Ken Abernethy, Chief Executive of AIE said the development was a boon to the fishing industry and would also help tourism.

He said: "The modern facilities will greatly improve the service to Oban's fishing fleet. The waterfront is one of Oban's great tourism assets and with the old ice plant demolished it will be even more attractive to visitors."