Isles of Scilly Steamship Group to borrow £33m to replace old fleet

The new passenger ferry is expected to shorten journey times to the Isles of Scilly

A new passenger ferry and two freight vessels will service the Isles of Scilly in a £42m project, a ferry operator says.

The Isles of Scilly Steamship Group said private funding would be used and vessels should be in service in 2026.

The group said it would borrow £33.6m.

The company had hoped to secure government funding but it said "no tangible progress" had been made since an initial offer. The government has been contacted for a response.

Derek Thomas, Conservative MP for St Ives, which covers the Isles of Scilly, said he "understood" why the company decided not to rely on government funding due to the delays.

"It was years ago now that we met with No 10 and the Department for Transport to try and secure public investment," he said.

"We've had so much work but also disappointment in the progress and in the meantime prices are going up and the existing vessels are getting increasingly close to their shelf life."

The Scillonian IV passenger ferry will carry 600 passengers over three decks

The new 236ft (72m) Scillonian IV passenger ferry will carry 600 passengers - an increase of 115 passengers on the existing Scillonian III, which is 46 years old.

A 148ft (45m) cargo vessel is expected to include more space for chilled and frozen goods.

A second cargo vessel will have 50% more capacity than the existing inter-island ferry and allow for faster journeys between St Mary's and the other islands, the group said.

Nathan Sikorski, director of Lombard NatWest Group, which financed the loan, said the ferries were a "lifeline" for many.

The vessel will have an on board coffee shop and retail area

Stuart Reid, chief executive of the Isles of Scilly Steamship Group, said: "The group has a long and proud history of providing a lifeline route to the islands for more than a century and a dedicated team of experienced staff who understand the unique nature of the islands and the needs of its residents and businesses.

"We are delighted to be announcing this major investment for the islands which will see vessels coming into service by March 2026.

"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 company said the new ferry also has anti-roll fins to improve the stability of the crossing

Ian Howard, the company's chairman, said it was a "special moment" for islanders.

"The next step is to bring in new ships which will enhance the service to the islands for passengers and for islanders' freight needs," he said.

Follow BBC News South West on Twitter, Facebook and Instagram. Send your story ideas to [e-mail].