Caledonian Maritime Assets Limited (CMAL) has awarded the contract for the comprehensive redevelopment of Port Ellen Ferry Terminal to McLaughlin & Harvey.

The £107 million project is designed to modernise the harbour's landside and marine infrastructure to support the next generation of ferry services.

The extensive programme includes significant land reclamation to expand the terminal's marshalling area, providing increased space for commercial vehicles and cars. A new dedicated ferry berth will be constructed, featuring advanced fendering, dredging, and bollards, ensuring compatibility with the existing fleet and the new Islay-class vessels. The maritime works also involve the installation of a new linkspan, a fixed ramp, and shore power charging infrastructure.

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On the landside, a larger, modern terminal building will be erected to improve passenger and staff facilities. The project also addresses broader harbour needs by quadrupling the length of the current commercial quay and providing a longer berth for the local fishing fleet. Safety will be further enhanced through redesigned traffic management routes and segregated offloading areas.

Fiona Hyslop, Cabinet Secretary for Transport, said: "I am pleased that CMAL has now awarded the contract for the complete redevelopment of Port Ellen Ferry Terminal. This £107 million project will create new, modern terminal facilities, expand marshalling areas and upgrade public and active travel amenities – improving passenger experience and supporting resilient ferry operations."

Kevin Hobbs, Chief Executive of CMAL, added: "The upgrade works to Port Ellen will provide a new, resilient harbour for the residents and businesses of Islay. This project has been in planning stage since 2021, and we welcome the Scottish government's commitment of funding to allow us to progress."

Seamus Devlin, Civil Engineering Managing Director at McLaughlin & Harvey, commented: "Working in collaboration with CMAL, we will deliver modern, resilient infrastructure at Port Ellen that allows for enhanced capacity, improved passenger experience and the introduction of the new Islay-class vessels."

Construction is slated to begin in June, intentionally following the Fèis Ìle festival to avoid local disruption. The full suite of works is expected to be completed in 2029.