Tenders have been received for €6.5m euro expansion to Killybegs Harbour.
Contractors are expected to be appointed next month and it’s thought the work will take 12 months to complete.
Dredging works in preparation for project had already started in 2017 and were completed in 2018.
The Smooth Point project, when complete, will provide a 120 metres quay space.
Donegal Deputy Pat The Cope Gallagher says while this is progress further investment is needed to accommodate other types of ships.