When Tynwald debated the future of the Island’s sea links in July 2016, the message from the Department of Infrastructure was stark. The Liverpool landing stage was collapsing, two sections had already sunk into the Mersey, and Peel Ports would not replace it without long‑term guarantees. The Island faced the prospect of losing its most popular route unless it stepped in.
The Department’s report (Below) to Tynwald set out a clear plan. Buy land at Princes Half‑Tide Dock for £3.5 million. Tender for a new terminal expected to cost £38 million. Negotiate a long‑term agreement with the Steam Packet to secure services until 2041. The report framed this as essential national infrastructure, warning that without reliable sea links the Island’s economic stability would be at risk. It emphasised that Liverpool was the preferred port for both passengers and businesses, and that the existing landing stage would be unusable beyond 2019.
A Project That Grew Beyond Recognition
The terminal scheme did not remain within its original boundaries. By 2018, costs had already begun to rise. By 2021, Tynwald had approved £70.6 million in funding, almost double the original estimate. Ministers later confirmed that this allocation, plus an inflation reserve of £2.12 million, had been fully spent.
Construction challenges mounted. Marine engineering complexity, structural reinforcement requirements, integration with the dock wall, and inflation in steel and marine systems all pushed costs upward. Contractors also discovered unexploded wartime ordnance on the riverbed, adding further delays and expense.
By the time the terminal opened in 2024, the project had become one of the most expensive capital schemes in Manx history. In February 2026, Infrastructure Minister Tim Crookall declined to confirm the final cost, citing ongoing legal proceedings. Former DoI political member Lawrie Hooper told the Keys the figure was north of £100 million.
The public still does not know the final number.
The new building is also often full having been designed too small to accommodate all of Manxman’s passengers. Manx.News understands that at times people have been refused access to the building due to capacity issues and others have spoken if inadequate toilet facilities.
VIDEO: Tim Crookall MHK was the DOI Minister when the terminal opened in 2024
Document Dump
Local campaigner Alf Caine has been probing the project for quite some time. Mr Caine requested a copy of the Liverpool Terminal Lease between Peel Land & Property and the Department of Infrastructure. What he received was a 219‑page document dump of unsearchable image scans. He argues that this format obstructs scrutiny and creates digital friction at a time when voters are seeking clarity ahead of September’s election. Since starting his scrutiny of the project, Mr Caine has announced he is standing as a candidate for Middle in the forthcoming House of Keys election. (For details of other candidates, see our Vote 2026 pages).
Caine has had the documents of the lease transcribed line by line. His analysis suggests that the financial and legal structure of the terminal is far more restrictive than previously understood.
A Lease That Extends Beyond the Modern Era
Caine argues that this creates a commitment lasting more than two centuries, binding future generations to obligations they cannot renegotiate.
Liabilities Without Limits
The lease places responsibility for river wall maintenance, berth dredging, structural repairs and estate charges entirely on the Isle of Man Government. There is no cap on these liabilities. If the Government defaults early, Peel can require full demolition and site clearance at taxpayer expense.
The terminal is restricted to passenger ferries. Dedicated freight is prohibited. The lease contains a clause allowing Peel to permanently remove unaccompanied freight rights if the operator makes three booking errors in a single winter season.
Commercial freedom is limited. The Government cannot sublet, host events or repurpose the site without Peel’s approval. Ecological assets such as the cormorant pontoon must be funded by the taxpayer. Peel’s legal fees for lease variations must also be paid by the Government. If the lease ends early, all design intellectual property transfers to Peel.
Caine describes these terms as structurally imbalanced, placing Peel in the position of landlord, regulator and beneficiary, while the Isle of Man carries the financial risk.
A Pattern of Withheld Information
Caine’s concerns extend beyond the lease. In correspondence with Treasury and the DoI, he has repeatedly sought basic operating cost data for the terminal. He says these requests have been met with delays, partial responses or refusals. He argues that the terminal operates at a net cost to the taxpayer, while the Steam Packet pays only a peppercorn licence fee.
The public has not been told the terminal’s annual running cost, its projected long‑term liabilities or the financial model underpinning its operation.
A Wider Governance Question
The Liverpool terminal has become a symbol of procurement drift, budget escalation and opaque decision‑making. It sits alongside other recent controversies, including the Lord Street litigation and MONEYVAL scrutiny, raising questions about the Island’s governance culture and its ability to manage large capital projects.
The central issue is no longer simply the cost of the terminal. It is the structure of the lease, the absence of exit routes, the scale of uncapped liabilities and the lack of transparency surrounding the project’s finances.
The Question Facing Tynwald
A project presented in 2016 as a £38 million strategic safeguard has become a £100 million scheme tied to a 232‑year lease. The Island now faces obligations that extend far beyond the political horizon of any current administration.
The question for the new Tynwald is how this happened and what steps will be taken to ensure that future infrastructure projects do not repeat the same pattern.
