SIC approves £18.6m for Fair Isle ferry
Alistair Munro
Shetland Islands Council has today (Fri) agreed unanimously to fund up to £18.6 million towards the cost of a new Fair Isle ferry and related harbour works.
Councillors met in private to discuss details of the full business case, including preferred options and financial implications, based on calculated project costs, including tender returns.
The overall project cost is estimated at £45.4m, partly funded by UK government grant of £26.8m, subject also to their approval of the full business case.
Councillors also decided to borrow the £18.6m contribution towards the project rather than to take this from the current reserves.
The preferred option is to construct a new larger, faster monohull vessel built to modern standards, to replace the current ferry Good Shepherd IV built in 1986.
This new vessel will have the same passenger capacity as currently, and have increased lift-on lift-off (lo-lo) capacity. To accommodate the new vessel, upgrades are needed to the existing ferry terminals at Grutness and North Haven in Fair Isle.
In Fair Isle, the boat noust would be enlarged to accommodate the wider, longer vessel along with a new slipway, boat cradle and winch house with some dredging in the harbour area.
At Grutness, the proposed infrastructure works includes a new steel tubular-piled pier, around the existing one, which also extends the length of the pier by a further 22 metres and a breakwater extension to create a more sheltered berth.
The next step in the project is for the Department for Transport (DfT) to also consider the full business case, ahead of a decision on whether to provide the UK Government grant.
It’s hoped that contracts can be awarded early in 2025, to meet the planned programme timetable and for work to get underway as soon as possible.
In November 2022, project costs were originally forecast at £29.7M and had risen to an estimated £40-45m by January 2024.
Amid rising costs, in May 2024, councillors agreed to review the project to help progress the project to the Full Business Case decided upon today.
Members of the project team have spoken regularly to representatives of the Fair Isle community to discuss what they need from the new vessel and their contributions have helped shape the vessel design and works required.
Moraig Lyall, chairwoman of the council’s environment and transport committee, said: “Councillors have today agreed to progress the funding for a new ferry for Fair Isle and the harbour works associated with it. It’s essential that we support the people of Fair Isle, and their ferry is a vital lifeline for their livelihoods and for the future of the island.
“The significant funding from the UK Government is very welcome and we now await the decision of the DfT to allow us to hopefully progress with construction as soon as practicable.”
