Projected cost of new Mull ferry terminal almost doubles to £96m

The projected cost of a new ferry terminal on the Isle of Mull has almost doubled in five years.

An official at Argyll & Bute Council revealed the estimated cost soared from £50m in 2020 to £96m, due to inflationary cost increases.

The objectives of the project at Craignure – which mainly connects to Oban on the mainland – include replacing its existing infrastructure, parts of which are reportedly in poor condition or have limited structural capacity.

The project also aims to increase berthing capacity and ensure that vessels can berth all year round, including in challenging weather conditions.

A contractor for the facility is also expected to be appointed early in the New Year, according to a report being presented to councillors on Thursday.

Executive director Kirsty Flanagan said: “This next stage will develop more accurate construction costing estimates as the design and methodology become more informed.

“The initial construction phase projection cost of £50m is now estimated at circa £96m based on inflationary increases to the original 2020 estimates.

“Officers are currently progressing with the tender to appoint the management consultants who will progress the project to Final Business Case (FBC).

“The tender is anticipated to be live by November 2025 with an appointment expected in January 2026.”

An update on the passenger access system (PAS) at Craignure also featured in the report.

Ms Flanagan added that design and build tenders were returned with costs “significantly higher than originally estimated”.

She also said that timescales were also significantly longer than expected.

It has been proposed that an inspection and refurbishment of the existing terminal take place to extend its working life until the new pier is completed.

Story by Local Democracy reporter Andrew Galloway.