A grant of £398,400 has been approved by Argyll and the Islands Enterprise (AIE) to allow Western Ferries (Clyde) Ltd to progress a £2m plan to upgrade its infrastructure at Hunter's Quay, Dunoon.

Founded in the early 1970s, Western Ferries operates four ferries between Dunoon, Argyll and Gourock, Inverclyde. In 2004 it carried over a million passengers and half a million cars across a route which is gaining importance as Dunoon looks to increase its reputation as a gateway to Loch Lomond and the Trossachs National Park.

AIE's contribution will go towards development of enhanced passenger facilities, an enlarged marshalling area with improved road lay-out and a dedicated bus lane. It will also assist the company's larger proposal to provide a second linkspan at both Dunoon and Gourock by contributing to the Cowal installation, allowing the firm to offer a consistent service regardless of weather, maintenance schedules or unforeseen circumstances. The additional linkspans signal Western Ferries' longer-term ambition to introduce a new generation of larger capacity ferries to the route bringing service and cost benefits.

AIE chief executive Ken Abernethy said: "AIE is keen to support Western Ferries' proposed investment which will provide a significant improvement to the transport infrastructure of Cowal.

"Over the next few years demand for access is expected to grow as a result of the regenerating economy and an increase in visitors to the National Park. We see this firm's proposals as providing a positive contribution to these encouraging developments."

Managing director of Western Ferries, Gordon Ross, explained: "This is the very first stage in a rolling programme to improve services to the local community and our customers. We're grateful for the support from AIE and look forward to improving our infrastructure in the phases we have planned for the future."

It's hoped the upgrading of Hunter's Quay will improve travel options to and from the ferry service and contribute to the wider integrated transport system of the Highlands and Islands.