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20161124 SIITS Draft Options Appraisal Report Vfinal

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20161124 SIITS Draft Options Appraisal Report Vfinal Shetland Inter-Island Transport Study Strategic Business Case - Options Appraisal Report On behalf of Shetland Islands Council Project Ref: 35580 | Rev: SC | Date: November 2016 Office Address: 3rd Floor, Exchange Place 3, 3 Semple Street, Edinburgh EH3 8BL T: +44 (0)131 297 7010 E: [email protected] Strategic Business Case - Options Appraisal Report Shetland Inter -Island Transport Study Document Control Sheet Project Name: Shetland Inter-Island Transport Study Project Ref: 35580 Report Title: Strategic Business Case - Options Appraisal Report Date: 24 November 2016 Name Position Signature Date Stephen Associate – Prepared by: SC 13/06/2016 Canning Transport Planner Reviewed by: Dr Scott Leitham Senior Associate SL 17/06/2016 Approved by: Dr Scott Leitham Senior Associate SL 17/06/2016 For and on behalf of Peter Brett Associates LLP Revision Date Description Prepared Reviewed Approved First full draft taking account of all V3.0 19/07/16 SC SL SL SIC comments Draft final report taking account of V4.0 07/10/16 SIC comments and updated fixed SC SL SL links material Final report taking account of SIC FINAL 24/11/16 SC SL SL comments Peter Brett Associates LLP disclaims any responsibility to the Client and others in respect of any matters outside the scope of this report. This report has been prepared with reasonable skill, care and diligence within the terms of the Contract with the Client and generally in accordance with the appropriate ACE Agreement and taking account of the manpower, resources, investigations and testing devoted to it by agreement with the Client. This report is confidential to the Client and Peter Brett Associates LLP accepts no responsibility of whatsoever nature to third parties to whom this report or any part thereof is made known. Any such party relies upon the report at their own risk. © Peter Brett Associates LLP 2016 ii Strategic Business Case - Options Appraisal Report Shetland Inter -Island Transport Study Contents 1 Introduction ................................................................................................................................. 9 1.1 This Report .................................................................................................................... 9 1.2 The Shetland Inter-Island Transport Network ............................................................... 9 1.3 Project Overview ......................................................................................................... 10 1.4 Appraisal Methodology ................................................................................................ 11 1.5 Consultation ................................................................................................................. 18 2 Vessels ....................................................................................................................................... 20 2.1 Vessel Replacement Strategy ..................................................................................... 20 2.2 Vessel Characteristics – Key Assumptions ................................................................. 22 2.3 Phasing & Cascade of Vessels ................................................................................... 25 2.4 Assumptions and Packaging of Capital & Revenue Options ...................................... 26 2.5 Other Investment Related to the Ferry Service ........................................................... 26 3 Air Infrastructure Options ........................................................................................................ 27 3.1 Overview ...................................................................................................................... 27 3.2 Accountable Management ........................................................................................... 27 3.3 Current and Potential Aircraft ...................................................................................... 28 3.4 Navigational Aids ......................................................................................................... 35 3.5 Mainland Airfield .......................................................................................................... 38 3.6 Use of Existing Assets & Resources ........................................................................... 41 3.7 Appraisal of Capital Options ........................................................................................ 42 4 Bluemull Sound ......................................................................................................................... 49 4.1 Capital Investment Timeframe .................................................................................... 49 4.2 Identified Problems ...................................................................................................... 49 4.3 Appraisal of Capital Options ........................................................................................ 52 4.4 Appraisal of Revenue Options ..................................................................................... 60 4.5 Annual Operating Cost Estimates ............................................................................... 63 4.6 Public Consultation – Prioritisation .............................................................................. 64 4.7 Rationale for Selection / Rejection .............................................................................. 67 5 Bressay ...................................................................................................................................... 69 5.1 Capital Investment Timeframe .................................................................................... 69 5.2 Identified Problems ...................................................................................................... 69 5.3 Appraisal of Capital Options ........................................................................................ 70 5.4 Appraisal of Revenue Options ..................................................................................... 75 5.5 Annual Operating Cost Estimates ............................................................................... 77 5.6 Public Consultation – Prioritisation .............................................................................. 79 5.7 Rationale for Selection / Rejection .............................................................................. 81 6 Fair Isle ....................................................................................................................................... 83 6.1 Capital Investment Timeframe .................................................................................... 83 iii Strategic Business Case - Options Appraisal Report Shetland Inter -Island Transport Study 6.2 Identified Problems ...................................................................................................... 83 6.3 Appraisal of Capital Options ........................................................................................ 85 6.4 Appraisal of Revenue Options ..................................................................................... 92 6.5 Annual Operating Cost Estimates ............................................................................... 95 6.6 Public Consultation – Prioritisation .............................................................................. 97 6.7 Rationale for Selection / Rejection .............................................................................. 98 7 Foula ......................................................................................................................................... 100 7.1 Capital Investment Timeframe .................................................................................. 100 7.2 Identified Problems .................................................................................................... 100 7.3 Appraisal of Capital Options ...................................................................................... 102 7.4 Appraisal of Revenue Options ................................................................................... 106 7.5 Annual Operating Cost Estimates ............................................................................. 110 7.6 Public Consultation – Prioritisation ............................................................................ 110 7.7 Rationale for Selection / Rejection ............................................................................ 112 8 Papa Stour ............................................................................................................................... 113 8.1 Capital Investment Timeframe .................................................................................. 113 8.2 Identified Problems .................................................................................................... 113 8.3 Appraisal of Capital Options ...................................................................................... 114 8.4 Appraisal of Revenue Options ................................................................................... 117 8.5 Annual Operating Cost Estimates ............................................................................. 121 8.6 Public Consultation .................................................................................................... 122 8.7 Rationale for Selection / Rejection ...........................................................................
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