The SIC will ask for £25 million of UK government funding to replace the Fair Isle ferry MV Good Shepherd, if a business case is approved at a ZetTrans meeting next week.
The business case to replace the aging ferry says that £4.8 million is needed for a new ro-ro vessel, while £20.8 million will go towards improving the harbour infrastructure at both Fair Isle and Grutness piers.
Its expected the new ferry could be up and running by late 2024 if the plans were approved.
The Good Shepherd only has a maximum life-span of five years, according to the report, and needs to be replaced.
Should councillors approve the business case next week, the SIC will apply for funding through the UK government’s Levelling Up fund.
The fund provides investment to places where it can make a difference to ex-industrial areas, deprived towns and coastal communities.