A SaxaVord mock rocket image illustrates how a take-off from its site at Lamba Ness in Shetland might look. PA
A SaxaVord mock rocket image illustrates how a take-off from its site at Lamba Ness in Shetland might look. PA
A SaxaVord mock rocket image illustrates how a take-off from its site at Lamba Ness in Shetland might look. PA
A SaxaVord mock rocket image illustrates how a take-off from its site at Lamba Ness in Shetland might look. PA

Construction on UK’s first vertical rocket launch site ahead of schedule


Gillian Duncan
  • English
  • Arabic

Work to build the UK’s first vertical rocket launch site is ahead of schedule, officials have said.

The first concrete base for launching at SaxaVord Spaceport, at Lamba Ness in Unst, Shetland, was completed this month.

It is one of two launch pads, called Fredo and Elizabeth, being developed in the first phase. A third, Calum, will be built in phase two.

The company is planning 30 rockets to blast off every year from the three launch pads, to take advantage of one of Europe’s highest latitudes.

SaxaVord Spaceport chief executive Frank Strang said: "Our progress has been phenomenal, despite major constraints and significant challenges on a daily basis.

"It is a testament to the huge efforts of our spaceport team, main contractor DITT and subcontractors such as Unst Plant, a local company created specifically to work on our project.

"More new space history will be made here in Shetland next spring and summer, with the first suborbital vertical launches from the UK, followed by vertical orbital launches later in the year.

"Alongside the eagerly anticipated horizontal launch from Cornwall, this will put the UK firmly on the international space flight stage.

"We now have seven clients all vying for launch windows and the good news is that we are ahead of schedule, meaning 2023 is going to be a hugely exciting year."

SaxaVord spaceport - in pictures

  • An illustration of a mock rocket taking off from Lamba Ness in Unst, one of Scotland's Shetland Islands. PA
    An illustration of a mock rocket taking off from Lamba Ness in Unst, one of Scotland's Shetland Islands. PA
  • An illustration of the UK Pathfinder Rocket launch. Photo: Lockheed Martin
    An illustration of the UK Pathfinder Rocket launch. Photo: Lockheed Martin
  • An aerial view of the SaxaVord site in the Shetland Islands. Photo: SaxaVord
    An aerial view of the SaxaVord site in the Shetland Islands. Photo: SaxaVord
  • Former British prime minister Boris Johnson walks around the stall for SaxaVord during a visit to the Farnborough International Airshow in July. PA
    Former British prime minister Boris Johnson walks around the stall for SaxaVord during a visit to the Farnborough International Airshow in July. PA
  • Lamba Ness in Unst. PA
    Lamba Ness in Unst. PA

Construction at the site began at the end of March.

Preparation work is now under way on the first building where rockets will be assembled and their small satellite payloads for low Earth, sun-synchronous or polar orbits will be integrated.

Rocket stage testing is expected to begin early next year.

A total of £19 million ($22.8) million, all privately raised, has been spent on the project to date, including £9 million on public road improvements from the community of Haroldswick up towards the 81-hectare site.

Britain's Civil Aviation Authority (CAA) this month started a consultation to seek views on SaxaVord's assessment of the environmental effects of the spaceport.

The consultation closes on December 8.

It was confirmed this month that Spaceport Cornwall had secured an operating licence, allowing the first space launch from UK soil to go ahead.

Engineers at work on satellites in a sealed environment at Spaceport Cornwall. Getty Images
Engineers at work on satellites in a sealed environment at Spaceport Cornwall. Getty Images

The CAA said the site in Newquay, south-west England, could be used for sending satellites into space.

The first mission, the launch of Virgin Orbit's modified Boeing 747 Cosmic Girl, which will carry eight shoebox-sized satellites, is expected in the coming weeks.

The 747 will take off horizontally while carrying the rocket, before releasing it at 35,000ft over the Atlantic Ocean to the south of Ireland.

The plane will return to the spaceport, while the rocket will ignite its engine and take a number of small satellites into orbit with a variety of civil and defence applications.

No launch date has been confirmed publicly.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 23, 2022, 3:18 PM