Councillors take first step on path towards tunnels
The next step will be the creation of a 30-year implementation ‘route map’, which should come before elected members in September
SHETLAND councillors have approved a “direction of travel” towards tunnels to Yell and Unst – and potentially to Whalsay and Bressay in the longer term – at a milestone meeting earlier today (Tuesday).
The next step will be the creation of a 30-year implementation “route map” which is expected to come to councillors on 23 September. This would then lead to full business cases being created for individual projects.
Chair of Shetland Islands Council’s (SIC) environment and transport committee Moraig Lyall – who received a round of applause for her statement in the chamber – said tunnels could be transformative for the isles and would offer a “better, brighter future”.
Tunnels to Yell, Unst, Whalsay and Bressay have been given an estimated total price tag of nearly £1.5 billion, with potential funding options coming in the form of capital grants, borrowing and private finance.
Following a significant study, elected members were tasked today with deciding what options to pursue for future transport connectivity for Yell, Unst, Whalsay, Bressay, Fetlar, Skerries, Papa Stour and Foula.
They followed recommendations for tunnels to Yell and Unst to be taken forward to the next stage of the process.
For Whalsay and Bressay, the recommendation is for continued investment in their ferry services with a “longer term commitment to a fixed link”.
There is a recommendation for a dedicated ferry for Fetlar operating over an extended day, and although a tunnel is proposed between Yell and Unst, investment in the Bluemull Sound ferry service will be required in the immediate term.
‘Do something’ options for the ferry services to Papa Stour and Skerries are recommended, with business as usual proposed for Foula.
The report to councillors reiterated that as external funding would be required, any preferred option is provisional and subject to availability of funding.
“As a result, the preferred fixed link options in particular are best understood as identifying the long-term direction of travel for each route, rather than immediate delivery commitments,” it added.
Members also approved up to £200,000 of funding from existing budgets to progress the project, including further development of funding and financing options.
It comes against a backdrop of ageing ferries, with Stephen Canning from consultants Stantec saying that seven of the SIC’s vessels are aged over 30 – a point where ferries in Scotland tend to be replaced.
Andy Sloan from tunnel experts COWI, who has been involved in the study, reiterated his view that subsea fixed links in Shetland are doable from a technical point of view – with the key constraint being funding.
Lyall however said that governments were watching, adding her view that the SIC should be bold in advocating for fixed links over incremental ferry improvements.
“A strong unified voice this morning will indicate to them [governments] that Shetland is serious that our future connectivity requires a 21st Century approach, where fixed links enable a delivery of economic growth and community resilience which is essential to giving Shetland a better, brighter future,” she said.
Shetland Central member Davie Sandison also pointed to likely new prime minister Andy Burnham, who is keen to “open up the whole of the north” if picked by Labour to replace the outgoing Sir Keir Starmer.
He also said Shetland now has an MSP with a “seat at the table” – the SNP’s Hannah Mary Goodlad, who is also minister for public finance.
SIC leader Emma Macdonald meanwhile pointed to the prospective new prime minister, adding that funding would be a “political decision”.
“We have no ‘do nothing’ options here,” she added outside the meeting.
“Ferries and tunnels are both needed to unlock the potential of Shetland, and both the Scottish and UK Governments have a vested interest in helping that happen.”
Her depute, Gary Robinson, also said that if the SIC is to be a “mature, credible client” to funders and contractors then “we really need to get our finances match-fit, and match-fit very quickly”.
Councillors Dennis Leask and Alex Armitage also pointed to the SaxaVord Spaceport in Unst, which is described as nationally significant.
Armitage said Unst – also home to a Ministry of Defence radar station – was the closest part of the UK to Russia, and added that it is not in Russian leader Vladimir Putin’s interests for tunnels to be built to the island.
SIC development director Neil Grant opened the meeting by saying that maintaining the existing ferry network requires significant revenue and capital investment.
He said the estimated capital requirement over of the next ten years reaches £581 million.
For fixed links, Grant said Yell and Unst had the strongest economic case, with industries such as space and aquaculture in the mix.
He also said it was important that the SIC has a “strong, united voice” on the topic of potential funders and external partners.
An hour-long presentation was provided by Canning, who explained the process behind the inter-island connectivity project and how the report’s information was gathered.
He described the decision taken at the meeting as a gateway into looking at individual project cases, with the matter “high level and more strategic” and setting out a “broad direction of travel”.
Canning said the SIC’s existing ferry network ran up a £15 million deficit in 2015/16, but it had risen to £25 million in 2024/25. The Scottish Government now covers the financial deficit.
He also raised issues such as reliability of ferries, and recruitment and retention of crew.
Canning told councillors that the ‘do max’ ferry option for the four key routes would be as least as expensive, or more, than tunnels – but would still give less benefits.
Sloan meanwhile said a tunnel to Yell – which was investigated in detail as part of a separate fixed link modelling project – could take eight years to complete if the process kicked off today.
This includes three years of preparatory work, another three years for tunnelling, and two years for fitting infrastructure like roads and lighting.
With a Yell tunnel coming with a total project cost of around £400 million, he also said the fixed link model engaged with the financial community – and the message back was that the project would be investable.
Sloan also said tunnel contractors showed a willingness to work in Shetland.
With the key constraint being funding, Sloan said there needs to be greater political engagement.
However, he said the interaction with politicians and funders so far has been “very positive”, with those figures recognising that the SIC is now at the “forefront” of tunnel delivery in Scotland.
Shetland Central councillor Ian Scott expressed doubt on the ability for governments to provide funding, but SIC chief executive Maggie Sandison said it was important to highlight what Shetland offers to the country economically.
She said tunnels could “unlock further growth”.
Sloan was also questioned about the estimated cost of Shetland tunnels compared to the apparent lower prices in places like Faroe, where there are already a network of fixed links.
He said the first tunnel in Scotland, like one in Shetland, would be more expensive, “because we’ll get better at it” over time.
Sloan also said the Nordic countries have been installing fixed links for a long time, and there is a difference in provisions they get from the state.
When it comes to Whalsay, local councillor Duncan Anderson sought to highlight how the island used to have a fish factory which was closed down essentially because of poor connectivity.
Meanwhile Shetland South member Allison Duncan asked if the Papa Stour and Foula ferry services could potentially be merged, but the message back was that this could be operationally difficult and would result in the loss of flexibility.
In debate Lyall said the current ferry system is “ageing, unreliable and extremely expensive to maintain”.
“The question before us is not whether we invest, but is how we invest, and for me the evidence in this report points really clearly to one direction.
“Fixed links are not just an alternative, they are the only option that genuinely removes the core barriers that our communities face – unreliable services, restricted travel times and the very real cost and uncertainty of ferry travel.”
Lyall said in places like Yell and Unst, “this isn’t marginal change – it’s the difference between managing decline and enabling growth”.
The full list of options picked by councillors are as follows:
• Bluemull Sound: Fixed link between Unst and Yell, with a dedicated vessel for Fetlar operating over an extended day. Investment in the Bluemull Sound ferry service will be required in the immediate term
• Bressay: Continued investment in the ferry service with a longer term commitment to a fixed link
• Whalsay: Continued investment in the ferry service with a longer term commitment to a fixed link
• Yell: Fixed link
• Foula: Business as usual
• Papa Stour: Ferry do something
• Skerries: Ferry do something
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