REDLAND City Council has backed down on its demand for the state government to pick up the entire bill for Southern Moreton Bay Island ferry terminal upgrades.
Redlands MP Kim Richards said the council had agreed to fork out $13.6 million, while the state would pay $20.5 million.
In May last year councillors called on the state government to fund the upgrades, at a cost then estimated at $26 million, and assume ownership of the jetties that badly needed repairs.
The Russell, Macleay, Karragarra and Lamb islands ferry terminals were built by the state but transferred to the council in 1999. Since then the council has operated and been responsible for maintaining them.
The state government announced in June last year that it had allocated $17.5 million to fully fund the Russell Island ferry terminal upgrade and pay half the cost of upgrading the Macleay, Karragarra and Lamb terminals.
Mayor Karen Williams said at the time that by agreeing to fully fund the Russell Island terminal, the state was acknowledging the public transport infrastructure was its responsibility.
The council announced this week that it would share construction costs - now estimated at $34.1 million - with the state government.
Cr Williams said the outcome followed months of negotiations with the Transport Department and Translink.
"Council has been determined to negotiate a deal that best serves the interests of island residents and visitors to use these terminals well into the future," Cr Williams said.
"The upgrade of the Russell Island ferry terminal will be given top priority because of the condition of the facility, with sequencing of the other upgrades determined during the planning phase."
Cr Mark Edwards said the project had many benefits for the four island communities.
"We know these communities rely on this infrastructure to access everything from employment to critical health services and this project will enhance commuter safety, as well as improve access to these vital services," he said.
"Council is keen to work with TMR to develop an operating model that ensures the long-term viability of this significant community infrastructure."
Ms Richards said the terminals were vital infrastructure.
"The $34.1 million upgrades to the terminals were a significant investment by both state government and Redland City Council and is a wonderful opportunity to collaborate on delivering for our island communities," Ms Richards said.
The state government had also given the council $250,000 to do a business case for the terminals replacement.