Shetland moves closer to £1.5bn tunnel network to replace ageing ferry fleet

Plans to transform transport across the Shetland Islands have taken a major step forward after councillors backed the next stage of a £1.5 billion programme to replace ageing ferries with a network of subsea tunnels.

Shetland Islands Council has approved a draft strategy for its Inter-island Transport Connectivity Programme, which proposes fixed links between the mainland and several of the archipelago's largest islands.

The first phase would see tunnels constructed between the Shetland Mainland and Yell, followed by a second connection from Yell to Unst. Additional links to Whalsay and Bressay also form part of the long-term vision.

The proposed Yell crossing, estimated to cost £402 million, has been used as the project's test case. Technical studies undertaken by Stantec UK, alongside Mott MacDonald and Cowi, concluded there are no fundamental engineering barriers to delivering the scheme, although challenges including deep-water construction, seabed conditions and overall affordability remain.

The council says the project would replace an increasingly unsustainable ferry network, with many of the existing vessels now operating beyond their intended lifespan. Shetland's fleet currently carries around 750,000 passengers each year across 70,000 sailings, but rising maintenance costs, recruitment challenges and ageing infrastructure have prompted calls for a long-term solution.

Speaking during the council meeting, Councillor Moraig Lyall said maintaining the existing ferry network would still require hundreds of millions of pounds over coming decades, arguing that permanent fixed links offer a more resilient, reliable and sustainable future for island communities.

With the draft business case now endorsed, the council will begin exploring funding options and move towards more detailed design work, bringing one of the UK's most ambitious transport infrastructure proposals a step closer to reality.