Fair Isle ferry costs rise to around £40m

The Good Shepherd IV is almost 40 years old.

The SIC has agreed to move to a full business case for a new Fair Isle ferry – despite the costs rising by over £10 million.

In a behind closed doors meeting on Wednesday, the SIC moved the project for an upgraded ferry and harbour renovations to the next stage.

But the estimated costs for the project have risen steeply to between £40-45 million, the council said.

In November 2022, when a decision was taken to replace the aging Good Shepherd IV, the costs were thought to be around £29.7m.

The UK government committed to providing £26.8m from its Levelling Up fund, with the rest to be provided by the SIC.

Shetland Islands Council said rising cost estimates had led the project team to explore options that “constrain costs while retaining as much of the original project ambitions”.

A larger 24-metre load-on, load-off vessel with the capacity for 12 passengers is now being proposed.

A pier extension at Grutness and a new slipway in Fair Isle is also on the cards.

The new ferry would be able to offer roll-on, roll-off sailings “at certain tide states”, the SIC said.

Residents in Fair Isle have been update on the latest with the project.

Depute convener Bryan Peterson said the economic climate had been “challenging” since they decided to pursue the Good Shepherd‘s replacement.