Major milestone achieved for Shetland’s Tunnel Plans

Graphic banner with text "Inter Island Transport Connectivity" and a map of Shetland.

Shetland Islands Council has today approved an inter-island transport connectivity Implementation Route Map (IRM).

Subject to funding, the IRM could see plans progress for two subsea tunnels and eight new inter-island ferries.

The draft IRM has been prepared by consultants Stantec, COWI and Mott MacDonald and is the final stage in the development of the long-term programme for inter-island transport connectivity.  It is based upon the decisions made by elected Members in June 2026 and sets these out in a timed programme of investment over approximately 30 years. 

Today’s decision will see initial plans for a tunnel from Shetland’s mainland to Yell progress first, followed by a tunnel from Yell to Unst, all dependent on full funding being secured.  The draft IRM also shows the proposed investment programme for ferry services for the other routes, including the immediate investment needed on Bluemull Sound.

The Scottish Government has confirmed that funding committed earlier this year will be made available to allow the project business case and pre-construction work for the Yell Sound tunnel to get underway.  

Council Leader Emma Macdonald: “This is a major step forward for our plans. With Scottish Government funding in place to begin initial work for the Yell Sound tunnel, today’s decision means that this work can now get under way.  

“This is critical not only for Shetland but for Scotland and the UK, which will benefit from our growing seafood, renewable energy, tourism and space industries.  As the work begins, we will continue to pursue the long-term funding which will not only build our tunnels, but be used to invest in our ferry services which will continue to be a lifeline for the isles.

“It’s a major achievement, and testament to the work of our officers, members and consultants, to have come to the end of this first phase of work, and to now be able to begin to put our plans into effect.

“Our most significant challenge now is to secure funding to allow implementation of these plans to move forward.  Inter-island transport is the key to unlocking the potential of Shetland, and both the Scottish and UK Governments have a vested interest in helping that happen.”

The full report which Councillors approved today can be read on our agenda management pages

Published: 21st September 2026