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Shetland backs plan to connect islands with £1.5bn undersea tunnels

The feasibility study says the fixed links could cut long-term transport costs and support growth at Unst’s spaceport and island businesses.

  • On Tuesday, the Shetland Islands Council is expected to approve a £1.5bn feasibility study for undersea tunnels replacing the islands' aging ferry service, with potential completion by 2034.
  • The current inter-island ferry fleet of 12 vessels completes 70,000 annual sailings for 750,000 passengers, but Council transport chairperson Councillor Moraig Lyall argued the system lacks capacity and adequate crewing to meet modern demands.
  • Engineering firm Cowi executive vice president Andy Sloan noted the Faroe Islands' successful 20-tunnel network as a model, calling the project straightforward to construct, while Lyall stated tunnels would be "cheaper in the long run" than continued ferry reliance.
  • Unst-Based boatbuilder Brydon Barclay called the tunnel "absolutely essential" to unlock local growth, and the feasibility study indicates the project would improve Saxavord spaceport's "competitiveness, efficiency and scope for growth."
  • While the initial plan connects Shetland's mainland to Yell and Unst, future links to Whalsay and Bressay are included in the strategy; the council will explore funding through private investment, public subsidy, and borrowing.
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The IndependentThe Independent
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The Independent (US)The Independent (US)
Lean Left

Remote UK islands could be connected via £1.5bn undersea tunnels

If approved, the tunnels could be opened within eight years

·London, United Kingdom
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caithness-business.co.uk broke the news on Tuesday, June 30, 2026.
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