The Shetland tunnel link project is currently in the modelling and feasibility stage, with three international tunnelling companies appointed in early December 2025 to assess the potential for fixed links. A final business case is expected to be presented to councillors in summer 2026.
Latest Updates (Dec 2025)
Contractors Appointed: The Shetland Islands Council (SIC) has engaged three major international contractors—Norway-based LNS, Austrian firm BeMo Tunnelling, and Europe's Strabag—to evaluate the technical, commercial, and financial viability of tunnels.
Test Case: The Yell Sound route has been selected as a test case for this modelling work, as it offers a wide range of features to inform the process for other potential routes.
Timeline: The contractors will visit the site and their conclusions will feed into the overall Outline Business Case, which is expected to be presented to Shetland Islands councillors in summer 2026. Decisions on preferred options would follow at a later date.
Funding Model: With neither the Scottish nor UK governments offering to pay the full cost, a funding model based on tolls (similar to the successful system in the Faroe Islands) is considered a likely option.
Support: The project is supported by local action groups, businesses (like the Saxavord Spaceport on Unst), and many residents who see tunnels as vital for long-term social and economic sustainability and to replace the ageing, costly ferry fleet.
Background
Shetland Islands Council is exploring fixed links (tunnels or bridges) as a long-term solution to replace its current fleet of ageing ferries, which are on average over 30 years old and increasingly expensive to run.
The current work is part of the Shetland Inter-island Transport Connectivity Programme, which is considering potential subsea tunnels for the following routes:
- Mainland Shetland to Yell
- Yell to Unst
- Mainland Shetland to Whalsay
- Mainland Shetland to Bressay
The ambition is inspired by the Faroe Islands, which have successfully implemented a network of subsea tunnels to connect their communities and boost economic growth
