Shetland Islands Council has awarded a £31.5 million harbour infrastructure contract to BAM Nuttall, progressing the £45.4 million project to provide a new ferry for Fair Isle.

The project, which includes building a new ferry and upgrading harbours at Grutness and Fair Isle, received full business case approvals from both the Council and the UK Government's Department of Transport.

BAM Nuttall will begin construction work at both sites in March 2025. The Grutness harbour upgrades are expected to be completed by December 2025, while the Fair Isle harbour work will be finished by November 2026.


The harbour infrastructure improvements will include new tubular piling to extend the Grutness pier and a breakwater extension to create a more sheltered berth. In Fair Isle, the boat noust will be enlarged to accommodate the new ferry, and a new slipway, boat cradle, and winch house will be built. Dredging will also be carried out at both harbours.

Shetland Islands Council is contributing £18.6 million to the project, with the UK Government providing a £26.8 million grant.

Council Leader Emma Macdonald said: "I'm pleased to see these contracts awarded so that these important works can get underway to provide a new ferry for the Fair Isle community. It's been a long journey to prepare the detail of the Full Business Case, against a difficult economic backdrop and uncertain costs over recent years. After the decision by Councillors in December to agree to fund the project, I'm grateful that the UK Government has also now agreed to commit their funding too. The ferry is a lifeline for so many aspects of life in Fair Isle and its replacement will serve the island for many years to come."