Shetland Islands Council approved a strategy to build a network of undersea tunnels, estimated to cost $1.5 billion, which will connect several islands. This plan addresses concerns about the islands' aging ferry fleet, some of which are 32.5 years old, and aims to reverse population decline by improving connectivity for residents and industries like the SaxaVord spaceport on Unst.
The initial approval focuses on tunnels from the mainland to Yell and then to Unst. Two further tunnels connecting Whalsay and Bressay are planned for the longer term. The first tunnel for Yell is projected to cost $402 million and would take eight years to complete, including $25 million for preparatory work and $50 million for risk and contingency. The council estimates that replacing the existing ferries would cost nearly $600 million over ten years without providing the same long-term benefits.
The consultants, COWI and Stantec, have indicated that a fixed link to Yell could generate an additional $30 million to $60 million annually, particularly benefiting the fisheries and aquaculture sectors. While the project has significant local support, funding mechanisms still need to be fully developed, with consideration being given to private investment, grants from UK governments, and local authority borrowing. The tunnels are tentatively scheduled to open in 2034.
