The 130m long extended quay will provide deep-water, versatile berthing and heavy load capacity to take an offshore structure in a single lift, with a substantial, expanded laydown area.
Work will begin in April, with completion due in April 2016.
At peak, BAM expects up to 40 people to be employed directly in the construction of the new facility, with wider benefits spreading to local suppliers and subcontractors.
BAM Nuttall’s Manager for Scotland, Dougie Grant said: “We understand the positive impact this scale of investment can have locally and we look forward to engaging proactively with the Shetland community to ensure this benefit is fully realised.”
Civil engineer firm Arch Henderson is responsible for design and project management of what is one of the largest infrastructure developments in recent years in the port authority’s on-going programme.
The contract will extend the quay by around 75m, with a load-bearing capacity of 60 tonnes per square metre, making it unique in Scotland.
It will have 12.5m water depth alongside, like the existing quay, amongst the deepest of its type in Scotland.