This item was published during the term of a previous administration that ended in April 2007
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Northern Isles ferry shortlist announced
09/04/1999
Six companies have been shortlisted to provide proposals to operate a lifeline ferry service to Orkney and Shetland from the year 2002 onwards Scottish Transport Minister Calum MacDonald announced today.
Potential operators who will be invited to submit proposals are:
P&O Scottish Ferries
Sea Containers Limited
SERCO Denholm Limited
Red Funnel (Southampton, Isle of Wight
South of England Steam Packet plc)
Stagecoach Holdings plc
Caledonian MacBrayne/Partners
The Government is encouraging strong competition amongst the bidders to run the services. It includes a partnership involving the Government owned ferry operator Caledonian MacBrayne (CalMac), and a strong field of private companies.
Mr MacDonald said:
"This Government is committed to improving rural transport services and maintaining lifeline links and for this reason I am pleased that the Northern Isles tendering process is moving forward.
"We have had constructive discussions with Islands Councils about the initial service requirement and I'm pleased to be able to respond positively to many of their suggestions. Amongst these, I can confirm that proposals may be submitted for the separate island groups alongside integrated Northern Isles options, and that Aberdeen will be the mainland port for the Shetland routes.
"We are determined to achieve a quality service with value for money as part of our commitment to safeguarding lifeline ferry services to the Northern Isles."
BACKGROUND
1. The shortlisted operators will be invited to make initial proposals to The Scottish Office this spring. A draft proposals document outlining draft service requirements has been prepared following detailed consultation and discussion with the Islands Councils and others involved.
2. This exercise, which will result in competitive tendering, began in October 1998 for the award of the next subsidy agreement commencing from 2002 for the Northern Isles Passenger Ferry Services. The present five-year block grant subsidy was awarded to P&O Scottish Ferries for the period 1997-2002.
3. Consultations on a draft proposals document took place with Orkney and Shetland Islands Councils and other interested partners earlier in the year.
4. The timescale for the exercise allows for the option of new vessels which may be needed for these services and provides sufficient time if the successful operator plans to build new ships. It is expected that the contract will be awarded before the end of 1999.
5. The final terms of the future block grant subsidy will be subject to the approval of the Scottish Parliament and the European Commission.
News Release: 0939/99
9 April 1999