Shetland Undersea Tunnels Cost £1.5bn Total, Council Vote Set for June 30

Shetland Islands Council released detailed cost estimates for four undersea tunnel projects on May 30, 2026. Total capital costs reach £1.49 billion across all four routes. The council will vote June 30 on whether to build tunnels or maintain current ferry services. Tunnels could reduce long-term costs and reverse population decline on remote islands.

Capital Costs Break Down by Route

The tunnel from mainland Shetland to Yell costs an estimated £402 million and would take eight years to build. The Yell-to-Unst tunnel costs £303 million, while the Whalsay tunnel reaches £427.5 million at 8.2 kilometers long. Bressay tunnel costs £255 million. These figures include construction, pre-construction, and risk contingency.

60-Year Operating Costs Favor Tunnels

Operating and maintenance costs over 60 years range from £44.4 million for Bressay to £92.5 million for Whalsay. Council consultants say even maintaining ferries costs more long-term than building most tunnels. Tolls on tunnels like Yell could help cover maintenance expenses.

Council Leader Warns Inaction Carries Risk

Shetland Islands Council leader Emma Macdonald said “doing nothing is not an option” in a statement ahead of the June 30 vote. She noted that islands with fixed links experience repopulation, economic growth, and lower average age. Current ferries are described as old, unreliable, and carbon-heavy, with frequent breakdowns threatening connectivity.

Vote Covers Eight Island Communities

The June 30 council meeting will decide connectivity options for Yell, Unst, Whalsay, Bressay, Fetlar, Skerries, Papa Stour, and Foula. Engineering consultants COWI and Stantec prepared the estimates after community engagement events concluded this week.

Final Thoughts

Shetland faces a £1.5 billion infrastructure choice by June 30. Tunnels appear cheaper than 60-year ferry costs for most routes, offering potential economic revival. The vote signals a major shift toward fixed links over aging maritime services.

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