Councillors yesterday agreed to progress the project to replace the Fair Isle ferry, meaning that the next stage of work can now continue towards a Full Business Case.
Shetland Islands Council has decided to progress to a Full Business Case, to consider detailed designs and more accurate costs for a vessel to replace the current Fair Isle ferry and construct the necessary harbour infrastructure.
In November 2022, a decision was taken to replace the current MV Good Shepherd IV with a Ro-Ro vessel and supporting harbour works at Grutness and North Haven in Fair Isle. Project costs at that time were then estimated to be £29.7M, to be met by £26.8M of provisional funding from UK Government’s Levelling Up Fund and £2.9M from Shetland Islands Council.
The project team has since progressed the vessel specifications and procurement, and the designs of harbour infrastructure at Grutness and North Haven in Fair Isle. There has also been significant work on the details required for Planning consents and Marine licences, which have also been granted.
Considerable work has been undertaken on current construction costs estimates, which are known to have increased across the UK as a result of economic and geopolitical issues. There are also pressures on the local construction workforce and supply chain, which contribute to the increased costs.
Rising cost estimates have led the project team to explore options that constrain costs while retaining as much of the original project ambitions, to still meet the future needs of the Fair Isle community. The collective ambition is to ensure that the vessel provides a larger freight capacity, with suitable methods to load and transport plant and equipment, and a more comfortable sea crossing for passengers.
The estimated budget for the project has now risen to between £40M to £45M, which will include a larger 24-metre, monohull, Load on–Load off vessel with a capacity of 12 passengers, to replace MV Good Shepherd IV. There will also be a pier extension and rock armour at Grutness Pier, and a new slipway, boat noust and boat cradle at North Haven in Fair Isle. Dredging at both harbours is also included in the cost estimates.
Importantly, the vessel design is expected to still offer the option to include occasional Roll on-Roll off sailings at certain tide states, to run between Lerwick and Fair Isle.
Late yesterday, the project team also updated Fair Isle residents, sharing details of the next steps for the project.
Bryan Peterson, Deputy Convener and one of the Councillors for Shetland South ward, which includes Fair Isle, said: “Since the Council agreed to support the case for new ferry for Fair Isle, the economic climate has been challenging. Our project team have been working hard to find ways to constrain costs as far as possible. We have spoken regularly with the Fair Isle community to discuss what they need from the new vessel. We’re really grateful for their contributions, which have been positive and pragmatic, and have helped shape the vessel design and works required to meet their needs. ”
Moraig Lyall, Chair of the Council’s Environment and Transport Committee said: “Rising costs are complication for many construction projects currently and the new ferry for Fair Isle is not immune – but we’re committed to meeting the future transport needs of the community. The project team will now complete the detailed Full Business Case, that will be considered in due course by the Council and the Department for Transport.”