This will help bring the project to its construction stage by funding the completion of business cases, Environmental Impact Assessments, planning, licensing, design and tendering.

This stage will also produce more accurate construction estimates, which are currently projected at £96 million for the project, based on inflationary increases to the original 2020 estimates.

Planning for Craignure Terminal’s replacement is to accommodate new ferries being deployed to Mull by Transport Scotland. The preferred location for the new terminal is just north of the current pier based on factors like safe water depth and prevailing weather direction.

Replacing the existing terminal infrastructure would:

• Increase berth capacity which will meet the requirements of the full range of design vessels
• Provide year-round berthing in challenging weather and overnight, which will reduce cancellations and improve the winter timetable
• Make the terminal operations more resilient
• Increase the vehicle marshalling area capacity
• Provide a modern terminal building with facilities that meet the needs of customers and staff
• Provide access for RNLI lifeboat and so facilitate medical emergencies

Councillor Ross Moreland, chair of the Harbour Board, said: “Planning Craignure’s ferry terminal replacement is just one aspect of our work with partners to improve connectivity and service resilience on Mull. Along with a planned £25m project to create overnight berthing at Fionnphort, it represents potential investment in our marine infrastructure on Mull of over £120m over the next five years.

“The additional £15m commitment to improving the breakwater at Iona slip is a clear sign that our islands play an important role in Argyll and Bute’s community life and economy.”