The Scapa Flow Container Transhipment Terminal project has taken a major step forward with an agreement reached between three organisations to establish a partnership to progress the next phase of work.

The three organisations are Orkney Islands Council, Highlands and Islands Enterprise, and The Crown Estate.

The development is key to meeting the demand for accessible deep water transhipment facilities in Scotland and in Europe that can accommodate the largest container ships.

The next phase of work, costing in excess of £1m, will involve the appointment of a project manager, and the commissioning of detailed studies to support applications for consents for the construction of the terminal. This will take between one and two years during which the promotion of the project to the container shipping industry will be stepped up.

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Earlier this year, the project was designated a National Development in the Government's draft National Planning Framework, indicating that ministers considered it to be essential to the delivery of the spatial strategy set out in the document.

The Scottish Government has indicated it will support the work of the partnership through representation on the steering group established by the three partners.

Alasdair Rankin, Head of Marine Business Development at The Crown Estate said: "The Crown Estate is pleased to be able to contribute to this project. This facility offers the potential for Scotland to meet national and European demand for accessible deep water transhipment facilities and could contribute significantly to local and national sustainable economic development."

Council Convener Stephen Hagan said: "This is a significant step forward for the project, and I am delighted that we have reached agreement to establish this partnership for the next phase of work. We believe this project is important not just for Orkney, but for Scotland as a whole, and designation in the National Planning Framework shows that the Government shares this view.'

Ken Grant, HIE area manager for Orkney is pleased to be working in partnership with the OIC and CE to further progress this key infrastructure project. He said: "This next phase will provide the necessary resources to complete much of the detailed environmental analysis required as part of the consenting process. This phase will also strengthen links with key players within the international shipping industry to help make this transformational project happen."

(GK/JM)