A plan to improve transport links to the Isles of Scilly has gained conditional approval from the government.
The decision follows an application for ?23.84 million from the Department for Transport to upgrade St Mary’s and Penzance harbours.
The scheme also includes a ?17.5m combined ferry to replace the Scillonian III and freight vessel Gry Maritha, which are reaching the end of their working lives. The new ship would then be leased back to the Isles of Scilly Steamship group.
Cornwall County Council will decide in January whether to proceed with the project and obtain funds to buy the new boat.
The scheme is managed by the Isles of Scilly Route Partnership, which was created in 2003 to look at improving transport links between Scilly and the mainland.
Members include the Islands’ council, Cornwall County Council, Penwith District Council, the Isles of Scilly Steamship Company, British International (Helicopters) and the Duchy of Cornwall.
Chairman Philip Hygate said: “We are delighted with the news that funding will be made available for major improvements to the St Mary’s and Penzance harbours and it will be full steam ahead for the scheme.
“The project will ensure the long-term economic prosperity of the Isles of Scilly and West Cornwall whilst also providing very important social and economic gains.”