McLaughlin and Harvey has scooped a £49 million contract to build Stornoway Port Authority's new multi-purpose Deep Water Terminal.

Work on the project at the Outer Hebrides' main port is expected to start in the coming weeks and be completed before the end of next year.

The Deep Water Terminal will provide modern facilities for a variety of sectors, including the energy and transport industries, and its design will enable it to be adapted for a wide range of future uses.

As well as being able to accommodate on and offshore wind farm vessels and support other energy sector activity, its main berth will be suitable for the largest cruise liners, which will help boost the islands’ important tourism industry.

Development of the terminal will also increase the capabilities and flexibility of the Arnish fabrication yard at Stornoway.

The Port Authority has worked closely with the Scottish Government, the Scottish Futures Trust (SFT), Highlands and Islands Enterprise (HIE) and Comhairle Nan Eilean Siar (CnES), the local authority for the Western Isles, over the past four years to advance the project. The trust port also acknowledged the important involvement of the land interests, including Crown Estate Scotland and the Stornoway Trust.

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Deputy First Minister John Swinney said: "The development of the Stornoway Deep Water Terminal will be a game changer for the local economy and for Scotland’s aspirations to grow our renewables and cruise sectors.

"The Scottish Government has long been supportive of this project, which will create jobs and multiple economic benefits for the Hebrides.

"The terminal is a key element of the Islands Growth Deal and will enable cruise traffic and expansion of the offshore renewables supply chain in the wake of the ScotWind offshore wind leasing round, as well as providing infrastructure for a range of other potential activities.

"As Chair of the Stornoway Deep Water Terminal Advisory Board I am pleased to see work now getting underway and this important project taking a significant step forward."

David McIntosh, associate director at the SFT, added: "We have supported Stornoway Port Authority and the Scottish Government in the innovative funding mechanism for this flagship project where our infrastructure expertise and economic advice has helped unlock substantial inclusive economic growth."

Stornoway Port Authority chair, Murdo Murray, said the signing of this contract signalled the imminent start of "an historic project which has the potential to truly transform the economy of the Outer Hebrides".

Mr Murray continued: "The Deep Water Terminal will open a new gateway to the islands for a wide range of sectors and become a catalyst for significant further development here. It is already attracting high levels of interest from potential customers.

"A huge amount of work has already gone into turning this vital development into a reality and we are very grateful to all our partners for their continuing support.

"McLaughlin and Harvey are highly experienced in this kind of work and we look forward to working with them on this project.

"The award coincides with my retirement after 10 years as a board member and I cannot imagine a more satisfying end to my time at the Port Authority."

CnES is providing significant loan funding for the Deep Water Port development.

Funding was also secured from regional development agency HIE.