Local authorities on either side of the Forth are urging the Scottish Government to start considering public funding options for Stagecoach’s proposed hovercraft service between Kirkcaldy and Leith.

South East of Scotland Transport Partnership (SEStran), which includes Fife, Clackmannanshire and City of Edinburgh councils, backed the company’s cross-Forth hovercraft trial in July and said there is a “positive business case” for a permanent service.

SEStran contributed £92,000 of public money to the trial and Stagecoach says it would need a further £3.3 million to get the link up and running.

Councillor Russell Imrie, the Midlothian chairman of SEStran, said, “Following the success of the trial, Stagecoach plans to offer an 18-minute service from Kirkcaldy to Leith, starting in 2008.

“The company will invest £10.5 million in establishing the service and are asking for £3.3 million of pump-priming, for the first three years. The service could become fully commercial in 2011.”

A study has been carried out on behalf of SEStran to test the feasibility of a further service between Burntisland and Granton.

Mr Imrie there was potential to carry 2800 passengers a day across the Forth.

He said, “Analysis shows that the service could operate at a surplus without the need for any long-term public subsidy, although some government backing would be required to improve the quality of fixed infrastructure at either side of the estuary and for initial vessel purchase.

“The ferry could begin operation in late 2009.”

The study showed that both ferries would serve different passenger bases, with only a 10% overlap.

Mr Imrie continued, “The flow of commuter traffic from Fife to Edinburgh is extremely heavy and this is going to increase considerably in the near future.

“SEStran backs the need for an additional multi-modal Forth crossing, but this is a long-term project that will take several years to complete.

“We need to establish transportation options that will help reduce congestion now, and which will continue to offer viable commuter services after the new crossing becomes operational.”

He added, “At present the Forth is effectively a barrier. The establishing of ferry services that can take a passenger from Fife to Edinburgh in a few minutes would transform it into a thoroughfare. This raises all sorts of possibilities for developing the economy in south-east Scotland and for reducing congestion on the region’s roads.”

Stagecoach Group spokesman Steve Stewart yesterday said the company had no immediate plans to introduce crossings at other points along the Fife coast.

However, he said there was potential for more services at places like Methil, Burntisland and Aberdour if the Kirkcaldy link took off.

He said, “We believe that the Forth estuary is an under-used resource.

“If you look at other geographical locations across the world, such as New Zealand and New York, they have successfully used estuaries to improve transport links.

“Our long-term vision, if the conditions are right, would be to have a network of services.

“This would not just boost transport links but would also boost the economy and promote social inclusion.

“Some areas, such as Methil, have high levels of poverty and unemployment and a hovercraft link has the potential to help revitalise the area.

“However, we need to establish a service first before we can look at potential other routes.”