Local Authority Ferries - Orkney Ferry Replacement Task Force Meeting - 29 January 2026

Attendees

• Shona Robison MSP – Cabinet Secretary for Finance and Local Government (via Teams)
• Jim Fairlie MSP – Minister for Agriculture and Connectivity
• Cllr Heather Woodbridge – Leader of OIC
• Cllr Sandy Cowie – Depute Leader of OIC
• Gareth Waterson - Director of Enterprise & Sustainable Regeneration, OIC
• Official – Head of TS Ferries Policy
• Official - TS Ferries Policy Manager (note taker)
• Private Secretary to Mr Fairlie

Welcome and introductions

The Cabinet Secretary welcomed the Orkney delegation and welcomed the Council’s “Behind the Headlines” article on the website which explained the purpose of the Task Force and how the ferry replacement programme was progressing. It was also agreed that since 2022, there had been good collaboration between the SG and the Council culminating in positive budget outcomes for inter-island connectivity projects.

Presentation from OIC on progress with business case

Phases 1 and 2 – Ferries Replacement Update

Following a positive community consultation, the final vessel design was agreed in October 2025 and approval to progress to tender was passed by the Council. Expressions of Interest were issued in November with a closing date of 28 January 2026. A shortlist of 6 shipyards will be invited to tender in February, for 3 vessels with the option for a 4^th, with contracts agreed in June/July 2026. 

Journey times will be between 30 mins and 2.5hrs depending on the route. The new vessels will have more capacity, be fully accessible, including a “changing places” facility with a medical room close by, have lie down facilities, specific luggage and bike storage. The vessels will also provide on board crew accommodation. Local communities have been very involved in the design of the vessels and see them as “their boats”.

Phase 2 will include both vessels and potential harbour infrastructure upgrades. Again, local communities are very involved and will continue to be so. The move from Lo-Lo to Ro-Ro vessels for Graemsay, Papa Westray and North Ronaldsay will be a significant change. Linkspan controls will also be upgraded in Eday, Sanday, Stronsay and Westray to support long term sustainability of North Isles transport links.

The Council noted the current issue with the Eday pier and that they are working with all interested parties including power and wind farm companies to resolve. 

ZEVI Update

It was disappointing that the ZEVI pilot is behind schedule. ZEVI 1 vessel is continuing sea trials and as is the nature of pilot projects, upgrades to software and problems with battery temperatures were restricting vessel distance, and therefore no passenger service yet. These issues should be fixed shortly. The larger ZEVI 2 vessel is now due in Orkney in early 2027, with passenger use commencing shortly after April 2027. 

Under 22 Free Inter- island Travel

The Council reported that 38,881 journeys had been taken by young people from April to Dec 2025. The introduction of free travel had been a huge success which had been reported by young people to Mr Fairlie during his visit in August 2025, including young people from the Orkney mainland travelling to islands.

Service resilience

The Council had received tenders for the acquisition of a third aircraft and would work with Loganair and the local communities to establish implementation timelines and service improvements to meet local needs. For example, during winter North Ronaldsay had one sailing per week. The third aircraft would improve resilience of connectivity for this island. 

The purchase of Toplander freight/work boat to provide additional resilience had been completed and would be deployed soon to free up capacity on some routes, though it will not be possible to use it in all sea conditions. 

The purchase of a roller/compactor has been completed and is enabling in-house teams to maintain airfields on the islands.

Finance and next steps

The Council was grateful for the funding support provided by the SG which had allowed all business case development to progress timeously. The costs of fleet replacement and infrastructure had not changed and remained between £270m-£400m. The current draft budget for 2026-27 onwards had provided certainty in planning for future resilience. However, the Council noted the need for future year budget uplifts to meet increased costs for refits, maintenance and running costs. The Cabinet Secretary said that future budgets would be decided as part of the annual budget process. 

The Council Leader and the Cabinet Secretary both expressed a preference for the continuation of the Task Force post-election, however, this would be up to the next administration. The Cabinet Secretary added that, as was usual practice, officials would prepare a “legacy note” for the incoming Government post-election.

AOCB 

There were no substantive items of business, however, the Cabinet Secretary wished to put on record the “can do” mentality of the Task Force and thanked the Council for its positive contribution. 

Date of next meeting

It will be up to the next administration to decide the direction of any future Task Force.