The Shetland Islands Council has given initial approval for a $1.5 billion undersea tunnel network, a project designed to connect several islands and replace the current ferry service. This ambitious infrastructure project aims to address issues with an aging ferry fleet, declining populations, and economic stagnation. Initial plans involve tunnels from the Shetland mainland to Yell, and then to Unst, with potential future connections to Whalsay and Bressay. The tunnels are projected to open by 2034.
The project is seen as a long-term economic booster, particularly for Unst, home to the SaxaVord spaceport and a significant aquaculture industry. Tunnels are expected to enhance the spaceport's competitiveness, improve access to skilled labor, and stimulate tourism. Similar infrastructure in the Faroe Islands has demonstrated success in boosting growth and revitalizing island life, and a feasibility study confirmed no technical barriers to building the tunnels.
The current inter-island ferry service, which transports 750,000 passengers annually across nine islands using 12 vessels, costs $23 million per year to operate. The fleet's average age is 32.5 years, and it faces challenges with crewing and vehicle capacity. The council views the tunnel network as a more financially prudent long-term solution compared to continuous investment in new ferries and harbor upgrades. Funding is expected to be a blend of private investment, public subsidy, and borrowing, with tolls covering maintenance costs.
