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Shetland awarded £23m to develop inter-island tunnels plan

News imageBBC A grey car enters a tunnel, driving past red "no pedestrian" and "no cyclist" roadsigns. The tunnel disappears into a grassy hillside. A blue and white radio station information sign reads "FM 100.0".BBC
One tunnel is expected to cost more than £500m

Shetland has secured £23m from the Scottish government to fund a project to replace ageing ferries with inter-island tunnels.

On Wednesday, local councillors approved a plan that could see fixed links built between mainland Shetland, Yell and Unst.

Council leaders say tunnels would be a cheaper long-term alternative to new ferries, but the programme could cost more than £1bn.

The Scottish government said it recognised the potential benefits of fixed links, with £23m over three years for "pre-construction activity".

News imageESTUNLAR.FO Faroe Islands underground tunnel. A large roundabout lit up blue and green. A road sign can be seen. ESTUNLAR.FO
The Faroe Islands have more than 20 tunnels

Shetland Islands Council (SIC) has approved an inter-island transport plan which could see the construction of sub-sea tunnels for the north isles, beginning with the link to Yell.

The Scottish government has awarded £23m, between 2027 and 2030, to fund design work and environmental surveys.

However, SIC chief executive Maggie Sandison said the local authority must not underestimate the scale of the challenge ahead.

"The decision to build cannot be made until we know how we fund the tunnels," she said.

A tunnel between mainland Shetland and Yell is estimated to cost £525m, according to a report by engineering consultancy Stantec.

A fixed link to Unst, the archipelago's northernmost island, carries a price tag of £505m.

The firm suggests there could be a cost benefit to building the two tunnels "concurrently under a single contract".

Stantec concludes the project requires "substantial and sustained" investment.

News imageGetty Images Wide view of a coastal harbour with several boats on calm water, including a ferry and fishing vessels, alongside a town of stone buildings on a gentle hillside under a blue sky with scattered clouds.Getty Images
The council runs ferry services to nine islands

The council currently runs ferry services to nine islands, carrying about 750,000 passengers each year on 12 vessels at a cost of £23m per year.

There hasn't been a new vessel in the fleet since 2004.

Shetland council leader Emma Macdonald said the funding was "a major step forward".

She said SIC would continue to explore long-term funding for tunnels and for investment in other inter-island ferry services.

The council believes tunnels would boost economic activity related to SaxaVord Spaceport in Unst and aquaculture in Yell.

Deputy First Minister Jenny Gilruth said: "The Scottish government is determined to support Shetland to thrive and we recognise the potential benefits that fixed links can bring to island communities."

"To provide multi-year planning certainty, a further £23m of support for Shetland Island Council was confirmed as part of the Scottish spending review."