Councillors have unanimously agreed to a comprehensive review of Perth Harbour.
The review will assess every option for the harbour's future including closing it.
The decision was taken by Perth and Kinross Council's Finance and Resources Committee on Wednesday, September 7.
The Fair City's harbour has been operating at a deficit following a decline in use.
As the committee received an update on PKC's revenue budget for 2022/23 councillors were told there was a projected overspend of £98,000 "due to additional operating costs and reduced income" at Perth Harbour. The overspend is in addition to the harbour's budgeted deficit of £178,000.
Councillors were told Perth Harbour "continues to under-perform against business plan expectations". There have been four cargo consignments this year - one since April.
Additional expenditure of around £80,000 is anticipated mainly for the proposed dredging of the harbour mouth. It also includes anticipated repairs to the Fair Maid. The tug is undergoing an inspection later this month following an "indication of tremors to the propeller shaft". If the investigation concludes it needs a new propeller shaft the cost is estimated to be £12,000.
Due to the uncertainty over the harbour's future income officers recommended conducting a review before councillors make any decisions on additional funding.
Bailie Alasdair Bailey asked if the review would include an item about "ceasing operations at the harbour".
PKC's head of Planning and Development David Littlejohn said: "Yes. A proper review of the harbour would assess all options literally from status quo through to a closure to obviously everything in between continuing to operate it or indeed sell it to a third party. The review would be comprehensive."
The Labour councillor said that was "reassuring".
Conservative Highland Perthshire councillor John Duff asked how much the Fair Maid was worth if repairs were made. Mr Littlejohn told the committee it was "middle-aged" and for insurance purposes the tug was valued at £350,000.
Conservative councillor David Illingworth questioned if running the harbour was "a legal requirement on the council".
PKC's head of Legal and Governance Services Lisa Simpson explained there were legal obligations in terms of health and safety for the council in running a harbour but added: "It's not mandatory that we operate a harbour."
SNP councillor and the committee's convener Stewart Donaldson moved to approve the review. This was seconded by council leader Grant Laing.
Cllr Duff put forward an amendment for the committee to approve an additional spend of £12,000 for repairs to the propeller subject to the outcome of the inspection.
Council leader Grant Laing welcomed this amendment as "pragmatic and sensible to maintain an asset". Cllr Donaldson agreed and it was approved by the committee.
