Designed to handle larger vessels, the Deep Water Terminal aims to enhance connectivity and stimulate local growth across renewable energy, transport and cruise sectors.

The linkspan will bolster port operations and is described as critical infrastructure for Lewis and Harris. It is expected to increase the capacity and resilience of existing ferry services, safeguard lifeline links to the mainland for goods, passengers and supplies, and support the potential introduction of a dedicated freight ferry to the island.

The project is also central to Scottish and Southern Electricity Network's Western Isles High Voltage Direct Current (HVDC) Project, which will install a subsea cable from the port to the mainland to carry renewable energy and improve energy security.

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The Bank's funding complements other ongoing works at the port, including a £7.2m upgrade to Arnish Road, led by the Port and supported by SSEN Transmission and Highlands and Islands Enterprise to improve access to industrial and port facilities.

Alex Macleod, Chief Executive at Stornoway Port, said: "The Port is grateful for the Bank's support, which will enable us to deliver this piece of critical infrastructure. The investment reinforces the Port's role at the heart of the Outer Hebrides, ensuring it is a place where people, businesses and communities can thrive.

"Stornoway Port is fundamental to every aspect of daily life and economic activity on the islands, so strengthening its infrastructure is not just an operational upgrade, but a long-term commitment to resilience, prosperity and connectivity of our communities."

Laura Fidao, Investment Director, at the Bank said: "The Deep Water Terminal plays a vital role in accelerating several industries and for growing the local economy. The Bank has worked closely with the Port to understand and overcome current funding challenges due to its trust port status.

"The linkspan will open up a range of new opportunities for the Port and the community, delivering lasting economic benefits for the Outer Hebrides."