A FERRY across the Firth of Forth could be operating in as little as two years, it was estimated yesterday, as plans for the (pounds) 10m project were revealed.

An initial report for Fife Council found that a service taking around 20 minutes would be viable, and further studies will be carried out to identify exact landing locations at either side of the firth.

Halcrow, the consultant that carried out the study, recommended a preferred route between Kirkcaldy and Leith, but an alternative crossing between Burntisland and Granton has not been ruled out. It is envisaged that the Kirkcaldy base would be most suitable as it covers a wider catchment area in Fife.

Stagecoach, the Perth-based transport group, was among those to express an early interest in operating the ferry, which would marginally ease congestion on the Forth road bridge, where drivers faced delays of up to two hours during recent roadworks. The number of vehicles using the bridge every day is predicted to rise from more than 70,000 last year to 100,000 by 2020.

The consultant looked at various Fife ports, including Methil and Rosyth, but concluded that Kirkcaldy to Leith would attract the most passengers, completing 1700 single trips a day. With this level of use, the report said, the route would be financially viable. Burntisland to Granton would attract 1300 single trips.

Two (pounds) 3m fast ferries would cross the Forth every half hour, each carrying 150 passengers. Mike Rumney, convener of the environment and development committee, said: ''This is an exciting and imaginative project which would go some way towards reducing congestion at the Forth Road Bridge. It will give commuters an alternative to the car and, I hope, become a tourist attraction, opening up the south coast of Fife and contributing to the economy of central Fife.

''Passenger ferries work in places like New York and Stockholm. I hope we can make them work between Scotland's capital and the Kingdom of Fife.''

However, he added: ''A lot more work needs to be done before this can become a

reality. For example, we need to establish where the money will come from to pay for passenger terminals. We need to speak to would-be operators to find out what kind of vessels they would provide.''

Iain Napier, Fife Council's area transportation manager, said further engineering studies were needed for Kirkcaldy and Leith, and the cost of upgrading harbours, opening passenger terminals and providing car parks could total (pounds) 10m.

He added: ''While (pounds) 10m capital costs might seem excessive, the total cost to the public sector of providing 1040 parking spaces and appropriate access facilities at the Ferrytoll park-and-ride (at North Queensferry) will be almost (pounds) 13m.

''It can be anticipated that some of the (traffic) shift to ferry will offer some reduction of road traffic on the Forth Road Bridge, especially during peak commuter times, again similar to Ferrytoll . . . this requires further consideration.''

Councillors agreed to carry out more detailed work on the financial and operational feasibility of the Kirkcaldy-Leith route, but also looking further at Burntisland to Granton, establish where the necessary finance would come from to pay for infrastructure such as ferry terminals, and carry out archaeological and environmental assessments.

The consortium is expected to seek backing from Europe, the Scottish Executive, and Scottish Enterprise.