Should Shetland Build Tunnels Like the Faroe Islands? The Costs, the Benefits, and the Future of Island Connectivity

30th June 2026

For decades, Shetland’s inter‑island ferries have been the backbone of life across the archipelago. They carry workers, students, freight, and families — and they do it in some of the most challenging seas in Europe. But the system is ageing, expensive, and increasingly unreliable. As the Faroe Islands have shown, there is another way: subsea tunnels.

Shetland Islands Council is now seriously exploring whether tunnels could replace ferries on some routes. The question is simple: is it worth it? The answer, surprisingly, is leaning toward yes — especially when you look at long‑term costs.

The Faroe Islands: A Real‑World Blueprint for Shetland
The Faroe Islands have built an impressive network of subsea tunnels over the last 20 years, transforming travel between their remote communities. Their costs provide the closest comparison for Shetland:

Eysturoyartunnilin (11.2 km) — ~€140 million

Sandoyartunnilin (10.8 km) — ~€115 million

Recent tunnel programme total — ~€550 million

These projects show that long subsea tunnels typically cost €100–150 million, depending on geology and depth. Crucially, once built, they are far cheaper to operate than ferries and provide 24/7, weather‑proof access.

What Would Tunnels Cost in Shetland?
Shetland’s own engineering studies give detailed estimates for four possible tunnel routes:

Mainland ↔ Yell: £402 million

Yell ↔ Unst: £303 million

Mainland ↔ Whalsay: £428 million

Mainland ↔ Bressay: £224 million

These are big numbers — but they must be compared to the cost of continuing with ferries.

The Rising Cost of Ferries

Shetland’s ferry network is becoming increasingly expensive to maintain:

Annual operating cost: ~£25 million

Average vessel age: 32.5 years

Long‑term cost (60 years):

Do nothing: £1.77 billion

Major upgrades: £3.4 billion

In other words, ferries are not just expensive — they are getting more expensive, and the fleet will soon require major investment.

Tunnels vs Ferries: Which Is Cheaper?
Over a 60‑year period, tunnels come out ahead:

Tunnels (all routes): ~£1.6 billion

Ferries (do nothing): £1.77 billion

Ferries (upgrades): £3.4 billion

Even the most conservative comparison shows tunnels are £168 million cheaper than keeping ferries as they are. And that’s before considering reliability, carbon emissions, economic development, and population retention.

The Faroe Islands saw similar results: tunnels cost more upfront but pay for themselves through lower operating costs and higher economic activity.

Beyond the Numbers: The Social and Economic Case
Tunnels don’t just save money — they change how people live.

24/7 access instead of waiting for the next sailing

Weather‑proof travel in a region where storms routinely disrupt ferries

Better emergency response times

Stronger local economies as travel becomes easier

More attractive for families and businesses

The Faroes experienced population growth and economic diversification after building tunnels. Shetland could see similar benefits.

What About Orkney and the Highlands? A Caithness–Stroma–Pentland Firth Tunnel?
If Shetland is seriously considering tunnels, should Orkney and Highland Councils revisit the idea too?

A tunnel from Caithness to Stroma — and then onward across the Pentland Firth — has been floated several times over the last 40 years. Each time, it was dismissed as too expensive or too ambitious.

But the world has changed:

Norway and the Faroes now build subsea tunnels routinely.

Costs are better understood.

The Pentland Firth is challenging, but not uniquely so.

The long‑term cost of ferries continues to rise.

A fixed link would transform Orkney’s economy and population stability.

Given the new data from Shetland’s feasibility studies, it may be time for Orkney Islands Council and Highland Council to re‑examine the numbers with modern engineering and modern economic modelling. A Caithness–Stroma–Orkney tunnel would be expensive — but so is running ferries for the next 60 years. The question is no longer “Is it possible?” but “Is it worth it?” And the only way to answer that is with a fresh, detailed feasibility study.