Hope that Fair Isle harbour work could get underway in March

SHETLAND Islands Council is hoping that work on Fair Isle’s harbour could start in March next year.

Development director Neil Grant, however, told Shetland Islands Council’s (SIC) environment and transport committee on Monday that the local authority has not yet had its request to the UK Government to extend a funding timeline formally approved.

UK Government awarded around £27 million to the SIC in early 2023 for the Fair Isle ferry replacement project, which involves both a new vessel and harbour upgrades.

But the SIC has since requested that the funding’s spring 2026 deadline be extended by one year.

Grant said the council has had “quite a positive response generally” from the UK Government, but is still waiting for formal approval regarding the funding drawdown deadline.

He added that the aim is for a full business case on the ferry replacement project to go to the council for decision in December.

It comes after officers decided against focusing on a fully ‘ro-ro’ new Fair Isle ferry amid rising costs.

The council is currently tendering for harbour infrastructure at Grutness in Shetland’s South Mainland and Fair Isle, as well as the vessel itself.

The contract for the ferry is worth £5.7 million, excluding VAT.

When the SIC was bidding for Levelling Up funding it was suggested the council’s contribution to the entire project could stand to be £2.8 million, making for an overall project estimate of around £30 million.

But the SIC said since then construction costs have risen “as a result of economic and geopolitical issues”, while there have also been pressures on the local construction workforce and supply chain, all contributing to the increased cost.

In January this year the project estimates stood at between £40 million to £45 million.