Contract awarded for £5.6m new Fair Isle ferry

The current Fair Isle ferry was built in Fife in 1986. Photo: SIC.

The contract to build Fair Isle’s new ferry has been awarded at a cost of £5.6m.

Shetland Islands Council has today (Tuesday) announced that Parkol Marine Engineering would build the replacement for the Good Shepherd IV.

She will be built at the company’s boatyard in Whitby, Yorkshire, and is expected to be handed over in October 2026.

The new vessel will be larger, faster and built to modern standards.

She will have capacity for 12 passengers and increased lift-on-lift-off capabilities for freight operations.

The vessel will also be roll-on-roll-off capable to use the council’s ferry linkspans. 

Meanwhile, work is also progressing on the harbour infrastructure works at Grutness and Fair Isle.

The overall project is estimated to cost £45.4m, with the SIC providing £18.6m and the UK government providing £26.8m through the Levelling Up fund.