Committee publication · Correspondence · 9 July 2026
Correspondence from Shetland Islands Council regarding the Inter-Island Transport Connectivity Programme, dated 30 June 2026
Summary
Shetland Islands Council writes to the Scottish Affairs Committee following evidence given on connectivity and fixed links. The Council has approved an Outline Business Case for the Inter-Island Transport Connectivity Programme (IITCP), which proposes a combination of subsea tunnels and enhanced ferry services across seven key inter-island routes. The letter requests UK Government support for financing models and long-term infrastructure investment to deliver this connectivity programme, citing economic transformation potential and feasibility studies by international tunnelling experts.
Key findings
- Shetland Islands Council voted 30 June 2026 to approve the Outline Business Case for the IITCP, establishing a long-term strategy for eight island communities involving fixed links and enhanced ferry services.
- Operating costs for Shetland's inter-island ferry network have risen to £25m for 2024/25, with an ageing fleet averaging 31.5 years old, creating operational problems and crew retention difficulties.
- The Fixed Links Model Study by international tunnelling experts COWI confirmed that subsea tunnel projects are buildable and investable in Shetland, with three funding options identified: capital grant funding, local authority borrowing, and private finance.
- The preferred network option includes fixed links on Bluemull Sound (Unst-Yell) and longer-term commitments on Bressay and Whalsay, with ferry investment for Papa Stour, Skerries, and business-as-usual for Foula.
- An Implementation Route Map will establish a phased 30-year investment programme to be presented to councillors in September 2026, providing framework for future investment decisions and partnership working.
Tone
ProceduralTopics
Key actors
Shetland Islands Council, Emma Macdonald (Leader, Shetland Islands Council), Councillor Robinson, COWI (tunnelling engineers), Stantec, Mott MacDonald (consultants), SaxaVord Spaceport, Lerwick Port Authority, Scottish Government, UK Government
Notable line
“With the IITCP Outline Business Case establishing, for the first time, the financial viability and deliverability of a tunnel project in Shetland, we invite the Committee to consider the transformative economic and social potential of fixed links …”
Key Quotes
“I am pleased to advise that the Council has today voted to approve the Outline Business Case for the Inter-island Transport Connectivity Programme (IITCP), establishing a long- term strategy for improving connectivity across seven of Shetland's key inter -island routes.”
“Shetland's current inter-island ferry network faces accepted operational problems, including significantly increased operating costs (rising to £25m for 2024/25), an ageing fleet with an average vessel age of 31.5 years, difficulties in crew attraction and retention, and deck capacity issues on several key routes.”
“… study, prepared by international tunnelling experts COWI (see appendix for overview), is the most detailed study undertaken to assess whether subsea tunnels can be delivered in Shetland, with important learnings for elsewhere in Scotland and the UK.”
“… we would welcome the Committee recommending that the UK Government works closely with the Scottish Government and Shetland Islands Council to explore financing models, support long-term infrastructure investment and help deliver this ambitious connectivity programme for Shetland.”
“The maximum achievable ferry solution, the Ferry Do Max, has now been tested and has been found to deliver lower bene fi ts for comparable or greater cost than a fi xed link in most islands.”
Source · parliament.uk record ↗