A new Scillonian ferry between Penzance and the Isles of Scilly is due to set sail in March 2026 after the company behind it pledged £42million to fund the project itself.
Two new freight vessels will also be built as part of the investment, which is now coming from the Isles of Scilly Steamship Group – the single biggest investment in its 103-year history.
The company had previously been promised £48.4million from the government’s Levelling Up Fund, following an announcement in 2021 by the Chancellor of the Exchequer on the back of a bid from the Council of the Isles of Scilly.
However, Isles of Scilly Steamship Group said this week that there had been “no tangible progress made in the last 18 months following the initial offer” and claimed there had been “significant changes to the terms of the offer and growing frustration with the delay both on and off the islands”.
As a result the Group had reverted to its original plan of privately financing the new vessels.
The deal will be financed through a £33.6m loan arranged with Lombard NatWest.
Stuart Reid, chief executive of the Isles of Scilly Steamship Group, said the announcement “reaffirmed the Group’s long-term commitment to maintaining the lifeline service to the islands, providing certainty, reliability, and a clear timeline for replacing the current ageing fleet.”
The Group launched its vessel replacement programme in 2019 to replace its Scillonian III passenger ferry, as well as the Gry Maritha freight ship and inter-islands launch Lyonesse Lady.
At 46, 42 and 32 years old respectively, the existing vessels are coming to the end of their service life, suffer reliability challenges and are increasingly costly to maintain.
Mr Reid said: “The Group has a long and proud history of providing a lifeline route to the islands for more than a century and a dedicated team of experienced staff who understand the unique nature of the islands and the needs of its residents and businesses.
“We are delighted to be announcing this major investment for the islands which will see vessels coming into service by March 2026.
“These new vessels will deliver a significant improvement in sea link services for the community and the visitor market. It provides certainty for islanders, island businesses and visitors, and the more than 200 staff that we employ on the islands and the mainland.”
The Scillonian III carries more than 110,000 passengers a year and operates an essential service for both islanders and the islands’ predominantly tourist economy.
The new 72-metre Scillonian IV passenger ferry will carry 600 passengers (an increase of 115) over three decks with what is promised to be a “contemporary, comfortable seating arrangement”, onboard coffee shop and retail area.
The company said it would reduce journey times, improve comfort with anti-roll fins to improve the stability of the crossing, and feature increased cargo capacity, with the ability to carry higher volumes of chilled and frozen goods and improved access for passengers with reduced mobility.
Every year 15,000 tonnes of cargo are shipped to and from the Isles of Scilly. The 45-metre dedicated cargo ship to replace the Gry Maritha will have an increased cargo capacity, including more space for chilled and frozen goods and a crane which can lift eight tonnes. The new cargo vessel will also have a lounge for a small number of passengers, giving more travel options throughout the winter months to island residents.
The new inter-island launch will allow for faster journey times between St Mary’s and the off-islands. It will have a 50% increase in cargo capacity and a significantly reduced fuel consumption. The aluminium catamaran design will also improve access into tidal restricted off-island quays.
All three vessels will have fuel-efficient engines, to reduce emissions. They will also be designed and built so that they can be retrofitted with improvements in green propulsion technology when mature and proven.
READ NEXT: Transfer of headland to town council delayed due to legal paperwork
Ian Howard, chairman of Isles of Steamship Group said: “When the current Board took over in 2019, its first priority was to restore profitability and put the company in a position where it did not have to be reliant on handouts. We have done that.
“The next step is to bring in new ships which will enhance the service to the islands for passengers and for islanders’ freight needs. This is a special moment for the company and the islands.”
The Steamship Group is in discussions with several shipyards and next steps will be to finalise procurement and build programmes.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here