Forestry Commission Scotland is paying for the new £3m development, being built at Fishnish.
Work is due to begin before Christmas, with the pier completed and operational by summer 2013. Mull-based TSL Contractors are being hired for the work.
It is thought the pier will save on at least 800,000 lorry miles each year. It will mean more timber moved onto boats to relieve traffic on mainland roads.
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Environment Minister Paul Wheelhouse made the announcement. He said: "Mull has a tremendous timber resource to tap into but transport costs off the island are high and therefore a constraint to marketing the timber off the island.
"With a reduction of haulage costs and more sites being opened up for harvesting, we should see an increase in Mull's timber value and a reduction of pressure on rural roads.
"The opening up of new markets and an increase in potential timber customers all positive outcomes that the new pier will deliver for Mull."
When the pier opens, it will be available to private and public timber suppliers and will be able to transport bulk goods.
The new development is expected to see about 50,000 tonnes of timber transported each year. Forestry Commission says more timber will become available as the forest matures.
(IT)
