The projected cost of the new Isle of Mull ferry terminal has almost doubled in five years, sparking concern among local stakeholders and highlighting ongoing infrastructure challenges across Scotland.
The estimated cost for constructing the Mull ferry terminal has risen from £50 million in 2020 to £96 million in 2025. Argyll & Bute Council officials attribute the increase to inflationary pressures and broader cost escalations affecting construction across the UK.
Local leaders warn that rapidly rising costs could threaten vital transport connections for islanders and visitors alike.
The substantial rise in the budget has prompted scrutiny from residents, business owners, and councillors, with questions raised about funding transparency and long-term sustainability.
The ferry terminal project is critical for supporting Mull’s tourism industry, local businesses, and daily travel, making cost management a key issue for everyone involved.
Kirsty Flanagan, Executive director, said: “This next stage will develop more accurate construction costing estimates as the design and methodology become more informed.
“The initial construction phase projection cost of £50m is now estimated at circa £96m based on inflationary increases to the original 2020 estimates.
“Officers are currently progressing with the tender to appoint the management consultants who will progress the project to Final Business Case (FBC).
“The tender is anticipated to be live by November 2025 with an appointment expected in January 2026.”
Scotland has faced mounting infrastructure pressures in recent years, with inflation cited as a major factor driving up prices for public projects.
The Mull ferry terminal’s escalating cost serves as a case study for how local government and communities are navigating post-pandemic economic turbulence.
