Shipbuilder chosen for Isles of Scilly ferry fleet

Shipbuilders Piriou will lead the work on the new passenger ferry Scillonian IV and cargo vessel

A shipbuilder has been chosen to construct new vessels to serve the Isles of Scilly.

The Isles of Scilly Steamship Group said Piriou will lead work on passenger ferry Scillonian IV and a cargo vessel.

The privately-funded project is set to cost £42m and it is hoped the vessels will both be in service by 2026.

However, it could face opposition from shipbuilder Harland & Wolff which is preparing a rival bid to operate Isles of Scilly ferries.

The company's proposal would put it in competition with the Isles of Scilly Steamship Company.

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

Stuart Reid, CEO of the Isles of Scilly Steamship Group, said the partnership with Piriou was an "important milestone" for their programme.

"The project team was unanimous in its decision to appoint Piriou as its preferred shipyard on the basis of experience, technical expertise in delivering specialist ferries and competitiveness," he added.

The 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.