A deal for the Manx government to buy a section of Liverpool waterfront has been agreed.

The Department of Infrastructure announced the deal with Peel Land and Property Ltd and the new terminal is due to be open in 2021.

The DoI has bought the Liverpool Princes Half-Tide Dock after Tynwald agreed in July 2016 to spend up to £3.5m to purchase the land.

Funding for the new terminal is now estimated at £30,492,000 and it will require further Tynwald approval. That figure includes the £3.5m cost of the land.

The new location is about 800m away from the current stage at Pier Head, which is being redeveloped to accommodate Liverpool’s growing cruise liner trade.

DoI Minister Ray Harmer MHK said: ’Establishing the island’s own ferry terminal in Liverpool is vital for providing security for our social and economic wellbeing, and the need to secure such a strategically important asset was acknowledged in the programme for government.

’The proposed terminal will provide significant improvements for those using ferry services and will also be used to host events that will boost our reputation with businesses and potential visitors across the north west of England.’

While the new terminal and linkspan in Liverpool will require planning approval in Liverpool, the DoI stated that the new linkspan would be designed to ’handle loads of up to 120 tonnes’.

The new linkspan and the agreement with the Peel Group will allow Liverpool to be able to handle freight during the winter months or in the event of an emergency.

It will also be able to hold buses, coaches and light commercial traffic all year.

Joe Anderson, Mayor of Liverpool, said: ’The new Isle of Man terminal is a critical piece in our regeneration plans for the north shore of Liverpool and I’m delighted that this deal has been struck between the Isle of Man Government and Peel to progress the scheme.

’The Isle of Man and Liverpool have a historic relationship and this new ferry terminal will cement our strong links and forge even closer ties into the future.’

A part of the development of the new terminal will include the construction of a new road to allow access for both foot passengers and vehicle traffic.

The original completion date of 2020 has also been pushed back by a year, with the new facility being due to open in 2021.

structure

A DoI spokesman said: ’The contract to secure the site has provisions for the assistance of Peel in the continued operation of the existing landing stage, but there cannot be an absolute guarantee because the structure is life expired and may not be safe for continued operations.

’The current landing stage is operated on a lease between the Steam Packet Company and Peel and the Department of Infrastructure has no role in that arrangement.’

The spokesman also confirmed the plans for the new terminal would be released for public consultation ’in the next four to six weeks’, while a planning application will be submitted following this consultation.

The new development forms a part of large governmental spending on sea services totalling nearly quarter of a billion pounds.

Following the acquisition of the Steam Packet for £124m, plans for the development of Douglas Harbour approved for £80.37m, the purchase of Princes Half-Tide Dock for £3.5m and the Budget estimate of about £30.5m for the new terminal and linkspan, the government has committed at least £238.37m to sea links.

This does not include the planned purchase of two new vessels for the Steam Packet. However, those costs are currently unknown.

The government also plans to recoup £76m of the purchase price of the company as it has been accounted for as a loan to be refinanced by the Steam Packet within 12 months of the deal which was completed in May.

The government has also committed to carry out improvement works around the island’s other harbours.