Shipbuilder Harland and Wolff has said it is readying proposals to build and operate new ferries between Cornwall and the Isles of Scilly.
The maritime engineering company, which operates Devon’s Appledore shipyard and the Belfast yard where the Titanic was built, has said plans to make and run two ferries on the crossing, as well as one inter-island vessel, from Spring 2025, were in an “advanced stage”.
In an update to investors on the London Stock Exchange on Wednesday, the Aim-listed firm said it had been considering building and operating ferries in its own right for three years, and would now work with local councils to apply for ‘levelling up funding from the Government to help finance the plans. The company said it would also apply for a licence to operate on the route between Penzance and Scilly.
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Harland and Wolff said it would be seeking to operate the vessels on an initial five-year period, with an option to operate for a further five years if potential Government performance targets were met.
Bosses cautioned there was “no certainty at this point” that the proposals would proceed to financial close. The company said it would undertake a consultation with residents on the islands, and that it would ensure the proposed ships would be “environmentally friendly”.
Group chief executive John Wood said: "We have a large number of colleagues in Appledore and across the group who are vastly experienced in the build and operation of passenger vessels. In my view, it is clear that, given the current cost of capital, access to and acceptance of levelling up funding will provide a very cost competitive model to operate either alongside the incumbents or on a stand-alone basis. This is a fantastic opportunity and we believe competition on this route is the right thing to ensure value for money for the residents and tourists of the islands."
The current passenger vessel in operation, the Scillonian III, was built at the Appledore shipyard. The vessel carries more than 110,000 passengers a year, and serves both island residents and the tourist economy.
Its operator The Isles of Scilly Steamship Group, secured private funding in April for £42m plans for a new passenger ferry and two new freight vessels, scheduled to begin in March 2026. Bosses at the group said a £33.6m loan had been secured from NatWest bank’s asset finance provider Lombard, following “frustrations” with 18 months of delays in receiving £48.5m in government funding for the project.
Harland and Wolff’s parent company InfraStrata bought Appledore shipyard in August 2020 in a £7m deal.
