Two boat race for ferry run
Only two companies are now competing for the right to run the Gourock-Dunoon ferry service.
V Ships have pulled out, leaving Caledonian MacBrayne and Western Ferries bidding for the route currently run by CalMac.
It is believed V Ships are still interested in bidding for the other 24 CalMac Clyde and Hebridean routes being put out to tender under European competition rules.
Western has unveiled a £4 million investment in improving berthing and terminal facilities on the McInroy's Point to Hunter's Quay route, involving new linkspans to be built at Ferguson's as well as increased car parking and improved passenger facilities.
It said the plans would proceed regardless of the outcome of tendering for the parallel CalMac route.
Opposition parties have raised doubts about the tendering, saying the Western Ferries investment indicated confidence in the process was collapsing.
But the Scottish Executive insists all bids are being assessed with scrupulous fairness.
Western Ferries pulled out of trying to win CalMac's other routes earlier this year.
Commenting on the V Ships' withdrawal from Gourock to Dunoon, Western Ferries managing director, Gordon Ross, said: "We have demonstrated for over 30 years that we can operate a successful community-focused ferry service without need for public subsidy.
"We are committed to providing first-rate ferry services to the people of the Cowal Peninsula and we hope to extend our approach to other routes in the near future."
A spokesman for CalMac said: "We are looking at our own options."