Work on Shetland inter-island tunnel to get underway as vision reaches major milestone

Visualisation of entranceway of tunnel from Shetland mainland to Yell placeholder image
Visualisation of entranceway of tunnel from Shetland mainland to Yell | Shetland Islands Council/Cowi

A long-held vision to connect the Shetland Isles by tunnel has reached a major milestone

Work is set to begin on a much-anticipated tunnel which will connect the Shetland mainland with the neighbouring island of Yell.

The four-mile fixed link is set to become a reality after councillors at Shetland Isles Council approved a route forward for its vision to better connect its people, places and industries.

The Scottish Government has confirmed that funding committed earlier this year will be made available to allow the project business case and pre-construction work for the Yell Sound tunnel to get underway.

Council Leader Emma Macdonald: “This is a major step forward for our plans. With Scottish Government funding in place to begin initial work for the Yell Sound tunnel, today’s decision means that this work can now get under way.

“This is critical not only for Shetland but for Scotland and the UK, which will benefit from our growing seafood, renewable energy, tourism and space industries. As the work begins, we will continue to pursue the long-term funding which will not only build our tunnels, but be used to invest in our ferry services which will continue to be a lifeline for the isles.

“It’s a major achievement, and testament to the work of our officers, members and consultants, to have come to the end of this first phase of work, and to now be able to begin to put our plans into effect.

“Our most significant challenge now is to secure funding to allow implementation of these plans to move forward. Inter-island transport is the key to unlocking the potential of Shetland, and both the Scottish and UK Governments have a vested interest in helping that happen.”

The first tunnel to Yell, which has a population of 960, is estimated to cost £402 million.

Councillors today (Wednesday) approved an inter-island transport connectivity Implementation Route Map (IRM) which, subject to external funding, could see plans progress for two subsea tunnels and eight new inter-island ferries.

As the fixed link between Shetland and Yell progresses, a tunnel from Yell to Unst will then be developed with both projects dependent on overall funding being secured.

A report to councillors said: “The broad principle of this draft IRM is that funding is provided for both the Yell and Unst tunnels. Whether tunnels are delivered concurrently, consecutively or under the build and evaluate model is subject to the availability of external funding and any requirements of those funders.”

The paper added: .”It is important to reiterate that substantial and sustained external funding will be required for any of the options highlighted within the draft IRM, and the pace of implementation will be almost entirely dependent on securing this funding.”

Earlier proposals for fixed links to Bressay and Whalsay will be considered at a later date, the paper said, with investment in ferries serving the islands to be made in the first instance.

The draft IRM also shows the proposed investment programme for ferry services for the other routes, including the immediate investment needed on Bluemull Sound, which separates Yell and Unst.

The draft IRM has been prepared by consultants Stantec, COWI and Mott MacDonald and is the final stage in the development of the long-term programme for inter-island transport connectivity. I

It is based upon the decisions made by elected Members in June 2026 and sets these out in a timed programme of investment over approximately 30 years.

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