A plan for a freight ferry service linking Scotland with Norway has failed to secure European funding.
A consortium wants to operate two ships - one linking Norway with Rosyth and Zeebrugge in Belgium, and the other between Norway and Shetland.
However, the plans for the Norshukon Link failed to win EU cash on a technicality.
Those behind the proposals say they are planning to apply for funding again next year.
Superfast Ferries has announced its intention to stop operating on the Rosyth route from mid-September, leaving no competition for the proposed new service.
By adding three Rosyth sailings to the original plans, it is thought Norshukon Link will have a stronger case.
The consortium behind the proposals is made up of private and public bodies from Norway and Shetland and the South East of Scotland Transport Partnership.
Significant volumes
They want to create a new "motorway of the sea", to divert significant volumes of freight from road to ferry transport.
The driving force behind the project, Shetland businessman John White, said: "I am very disappointed not to have succeeded this time round.
"However, I remain hopeful that a revised submission in January 2009 will be successful.
"Our application, which was submitted in April, was made prior to the announcement by Superfast that they were withdrawing from the Rosyth-Zeebrugge route this month.
"Not being aware of their withdrawal at the time of our submission presented issues of competition, which we had to account for in our application.
"A delay in the start of the service could bring about some benefits to the route as the new vessel that I was planning to introduce to the route later in 2009 will be the vessel which I now propose to start the route with.
"This vessel is larger and more efficient than the one that I would have used had we started this year so there is some benefit to be had from the delay."
Speaking on behalf of the Norshukon Link, Rolf Kare Sether said: "Like John White we are bitterly disappointed that we will not be seeing a service starting up this year.
"We remain fully committed to the project and the project partners will continue to support John as he prepares to resubmit his proposal in January."
Russell Imrie, Sestran chairman, said: "Sestran remains committed to supporting this project, which we believe has the potential to provide a major boost to the economy of south east Scotland.
"The new service will be able to make good use of the region's excellent transportation links for onward transfer of freight."
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