Wick has secured a £576,000 funding package to create a marina in the town's harbour.

The Harbour Authority plans to tackle the decline in fishing industry with investment to secure the long-term future of the largest harbour on the east coast of Caithness.

There has already been a 40% increase in trade since 12 seasonal pontoons opened last year.

Willie Watt, chairman of Wick Harbour Authority, told the Herald: "This project is a major step forward in diversifying activities in the harbour and provides an important new income stream.

"We are very confident we can build on our Phase I pontoon development success and attract a wide range of vessels to the town. The pontoons will provide year-round berthing, offer 50 serviced and 20 non-serviced berths."

He continued: "Additionally, our plan includes secure over-winter storage and provision of maintenance services for yachts, which will bring in additional revenues."

The plans for Wick harbour will support development of marina facilities in other areas by joining a network of staging-posts in the north of Scotland all within a reasonable day's sail.

Roy Kirk, Highlands and Islands Enterprise area manager for Caithness and Sutherland, said: "This development is essentially strengthening the sailing infrastructure in the north of Scotland and marketing will be targeted towards the Scottish and UK markets.

"This project will set the scene for a transformation of Wick's harbour front and improve the town's future."

The Crown Estate has provided nearly half of the total sum to Wick Harbour Authority for the proposed plan.

The development is part of the Caithness and North Sutherland Action Plan aimed at finding economic regeneration to combat the effect of the rundown and eventual closure of the Dounreay nuclear plant.

It is hoped that the new facilities will be in place for the 2009 summer sailing season.