New ferries could be built in China or Turkey
Tenders are being invited for two new freighter-flex vessels, representing a major progression in plans to improve Shetland's transport links.
The first stage of the competitive tender process assessed shipyards interested in bidding for the contract against specific criteria, including facilities, capacities and capabilities to take on the project.
Four yards have been selected to progress to Invite to Tender stage - Cemre in Turkey; GSI in China; Stena UK alongside reliance partner CMJL (Weihai); and Tersan in Turkey.
The two new freight flex vessels will serve the Aberdeen to Kirkwall/Lerwick route at an estimated cost of £200m.
Tender returns are expected by late November 2025, with a view to awarding the contract in February next year.
ZetTrans chairwoman Moraig Lyall has welcomed the announcement.
"I look forward to hearing the outcome of this process in the coming months.
"Capacity on our ferries has been an increasing concern for many, both for passengers and freight, and these new vessels will increase the space for both."
NorthLink managing director Stuart Garrett said he and his colleagues were really pleased the project had moved to the next phase.
He said the company was looking forward to working closely with all relevant parties, particularly with a view to ensuring key contract award dates can be met.
Transport secretary Fiona Hyslop added: “The Scottish government is committed to investing in our ferry fleet to better meet the needs of island communities, so I’m very pleased to see the second stage of procurement process for two new freight flex vessels get underway.
“These new vessels will have increased freight capacity, higher operating speeds, and additional capacity for passengers in peak season.
"This will enhance the efficiency and reliability of ferry services to better support the needs of businesses and communities in the Northern Isles for years to come.
“This is an important milestone in our plans to improve ferry services and I look forward to following the progress of this project over the coming months.”
CMAL chief executive Kevin Hobbs said: “These new vessels will bring a huge increase in capacity for freight and passengers.
“The desire for an increased freight provision was regularly mentioned throughout our public engagement sessions, but so too was additional passenger accommodation to add resilience to the fleet.
"The freighter-flex design allows us to meet both needs: accommodating up to 200 passengers during peak months or alternatively reverting to freight mode to maximise commercial vehicle capacity.
"We look forward to seeing the four tender returns in late November 2025, at which point they will be assessed thoroughly against technical and commercial criteria.”