The Isles of Scilly Steamship Group has secured private funding to introduce new ferries between Cornwall and the Isles of Scilly.
The new Scillonian passenger ferry and two new freight vessels will set sail by March 2026. The £42m project will be the single biggest investment in the 103-year history of the Isles of Scilly Steamship Group and comes after frustrations with 18 months of delays in Government funding for the project.
The deal, which was secured by the Penzance-based shipping group comes will largely be financed through a £33.6m loan arranged with Lombard NatWest, a UK asset finance provider.
The current fleet is between 32 and 46 years old and was due to benefit from £48.5m in Government Levelling up Funding through the Council of the Isles of Scilly. Stuart Reid, chief executive of the Isles of Scilly Steamship Group said: "Following the initial offer, significant changes to the terms of the offer and growing frustration with the delay both on and off the islands, the group has reverted to its original plan of privately financing the new vessels."
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Mr Reid continued: "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 over 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 at one time, which is an increase of 115, over its three decks, which will contain an onboard coffee shop and retail area.
The group said the new ferry will reduce journey times, improve comfort and have an increased cargo capacity with the ability to carry higher volumes of chilled and frozen goods, plus improve access for passengers with reduced mobility. While the new cargo vessel will provide more travel options throughout the winter months to island residents and the new inter-island launch will allow for faster journey times.
The Isles of Scilly Steamship Group explained in a statement that "all three vessels will have fuel-efficient engines, which will reduce emissions while providing an enhanced service and improved resilience for the islands."
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 hand outs. 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.”
Nathan Sikorski, director, Lombard, NatWest Group added: “The Lombard team of Chris James and I are delighted to have been given the opportunity by the Isles of Scilly Steamship Group to become a key partner in delivering on this exciting new-build project, which will see the sustainability of this critical lifeline service continue for generations to come.
“Lombard’s support for the Isles of Scilly Steamship Group dates back many years having facilitated the acquisition of the original Gry Maritha. This exciting major investment will transform its fleet of vessels and secure the long-term future of the vital services it provides.”
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