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CalMac sign north boats contract
STATE-owned ferry operators Caledonian MacBrayne were formally awarded the northern isles lifeline ferry contract through their new company NorthLink Ferries Ltd yesterday (Thursday).
Transport minister Tavish Scott said the new contract would begin immediately and run for six years, with an annual subsidy of £31 million.
Previous operators NorthLink - in whom CalMac shared control with the Royal Bank of Scotland - had been awarded the contract with a £12 million subsidy. That deal had to be abandoned because the level of subsidy kept increasing well beyond the initial agreement.
For the first time the new contract incorporates freight and livestock, including a mid week freight call to Kirkwall, new livestock transporters next year and "an improved performance regime".
Mr Scott said: "Our aim all along has been to secure these vital lifeline ferry services to the northern isles for the long term. That is what we have delivered.
"These ferry links are crucial to the prosperity and wellbeing of the Shetland and Orkney communities they serve.
"I am confident that this contract offers the best value for public money and will deliver real improvements for anyone using the service. Reducing freight rates for island businesses will benefit the economies of Shetland and Orkney and local crofters and farmers will welcome the new livestock container arrangements.
"I expect the new company to build successfully on the service previously provided by NorthLink Orkney and Shetland Ferries Ltd."
CalMac / NorthLink beat V Ships, the world's largest ship operators, to be made preferred bidders in April.
Stock boat arrangements for livestock will continue as normal this year.
Transport minister Tavish Scott said the new contract would begin immediately and run for six years, with an annual subsidy of £31 million.
Previous operators NorthLink - in whom CalMac shared control with the Royal Bank of Scotland - had been awarded the contract with a £12 million subsidy. That deal had to be abandoned because the level of subsidy kept increasing well beyond the initial agreement.
For the first time the new contract incorporates freight and livestock, including a mid week freight call to Kirkwall, new livestock transporters next year and "an improved performance regime".
Mr Scott said: "Our aim all along has been to secure these vital lifeline ferry services to the northern isles for the long term. That is what we have delivered.
"These ferry links are crucial to the prosperity and wellbeing of the Shetland and Orkney communities they serve.
"I am confident that this contract offers the best value for public money and will deliver real improvements for anyone using the service. Reducing freight rates for island businesses will benefit the economies of Shetland and Orkney and local crofters and farmers will welcome the new livestock container arrangements.
"I expect the new company to build successfully on the service previously provided by NorthLink Orkney and Shetland Ferries Ltd."
CalMac / NorthLink beat V Ships, the world's largest ship operators, to be made preferred bidders in April.
Stock boat arrangements for livestock will continue as normal this year.
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