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Calmac Win ferry bid
Islanders have welcomed the news that state-owned Caledonian MacBrayne has been named preferred bidder for the lifeline ferry service between Shetland, Orkney and Aberdeen.
Scottish transport minister Tavish Scott announced the executive's decision yesterday (Thursday) lunchtime.
Shetland Islands Council's transport spokesman Gordon Mitchell said islanders had waited a long time for this announcement, which will also introduce large subsidies on freight.
"It is excellent that finally the announcement has come and hopefully there will be a seamless transfer. NorthLink has given us a very good service up until now. If CalMac can maintain that service then that's what we are looking for," he said.
Bill Davidson, the chief executive of current operator NorthLink said the transfer should hardly be visible for the travelling public.
He said: "From the little I know of the CalMac bid, I think it is unlikely that most people will see very much in the way of change. I believe it is CalMac's hope to carry on and trade as NorthLink.
"There is no suggestion that they will change the name of the company or the colour of the ships, and I understand that it is CalMac's intention to run NorthLink as an autonomous business."
NorthLink was set up by CalMac with the Royal Bank of Scotland specifically to run the northern isles ferries. Mr Davidson said it was likely that NorthLink's management team would stay on.
Making the announcement, Mr Scott said: "This devolved government is committed to providing quality ferry services for people in the northern isles. Our aim has been to secure these vital lifeline services for the island communities.
"Although the tendering was a complex exercise, the new contract is financially sound and delivers real improvements for anyone using the service. We have incorporated the findings of the independent auditor, Audit Scotland, into the procurement exercise.
"The new service when introduced will benefit the economies of Shetland and Orkney by reducing freight rates for island businesses. Plans for new livestock containers will be welcomed by local crofters and farmers.
"There will now be an intense final period of contract negotiation before the official handover. The six year contract will introduce real benefits for local people and businesses, helping the economies of the northern isles."
He said the new service, for which an early summer handover is planned, would introduce a number of improvements including:
* reduced freight tariffs of 19 percent from Orkney and 25 per cent from Shetland;
* inclusion of livestock in the contract for the first time, with a new container system to be provided;
* proposals for increasing berth numbers on the vessels operating between Aberdeen and the islands depending on the outcome of further analysis.
The other bidder in the running was global shipping firm V-Ships UK Ltd.
Scottish transport minister Tavish Scott announced the executive's decision yesterday (Thursday) lunchtime.
Shetland Islands Council's transport spokesman Gordon Mitchell said islanders had waited a long time for this announcement, which will also introduce large subsidies on freight.
"It is excellent that finally the announcement has come and hopefully there will be a seamless transfer. NorthLink has given us a very good service up until now. If CalMac can maintain that service then that's what we are looking for," he said.
Bill Davidson, the chief executive of current operator NorthLink said the transfer should hardly be visible for the travelling public.
He said: "From the little I know of the CalMac bid, I think it is unlikely that most people will see very much in the way of change. I believe it is CalMac's hope to carry on and trade as NorthLink.
"There is no suggestion that they will change the name of the company or the colour of the ships, and I understand that it is CalMac's intention to run NorthLink as an autonomous business."
NorthLink was set up by CalMac with the Royal Bank of Scotland specifically to run the northern isles ferries. Mr Davidson said it was likely that NorthLink's management team would stay on.
Making the announcement, Mr Scott said: "This devolved government is committed to providing quality ferry services for people in the northern isles. Our aim has been to secure these vital lifeline services for the island communities.
"Although the tendering was a complex exercise, the new contract is financially sound and delivers real improvements for anyone using the service. We have incorporated the findings of the independent auditor, Audit Scotland, into the procurement exercise.
"The new service when introduced will benefit the economies of Shetland and Orkney by reducing freight rates for island businesses. Plans for new livestock containers will be welcomed by local crofters and farmers.
"There will now be an intense final period of contract negotiation before the official handover. The six year contract will introduce real benefits for local people and businesses, helping the economies of the northern isles."
He said the new service, for which an early summer handover is planned, would introduce a number of improvements including:
* reduced freight tariffs of 19 percent from Orkney and 25 per cent from Shetland;
* inclusion of livestock in the contract for the first time, with a new container system to be provided;
* proposals for increasing berth numbers on the vessels operating between Aberdeen and the islands depending on the outcome of further analysis.
The other bidder in the running was global shipping firm V-Ships UK Ltd.
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