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This item was published during the term of a previous administration that ended in April 2007

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Northern Isles ferry service

19/07/2005

Northern Isles ferry services are set for improvements, with today's announcement of the service specification for services to Orkney and Shetland.

Transport Minister Tavish Scott announced the tender shortlist and specifications, which include:

  • A reduced tariff for freight on the Aberdeen routes
  • Improvements to the timetable
  • Livestock and general freight in the new contract

Three companies, V Ships UK Ltd, Irish Continental Ferries plc and Caledonian MacBrayne Ltd have been invited to tender for the service currently operated by NorthLink.

The Minister also announced that a separate new competitive tender will be issued offering support for a load-on load-off freight service to secure the existing level of freight services to the islands.

Mr Scott said:

"I am pleased we are now able to move to the next stage of the tendering exercise. Our aim is to secure these vital lifeline services for the island communities.

"We want to build on our commitment to invest in lifeline ferry links and harbour improvements. Orkney and Shetland want a quality service and I am glad that we have been able to take account of many of the views expressed in the recent consultation. The reduction in tariffs for freight on the Aberdeen routes should be of particular benefit to the islands' economies.

"Once the bids have been carefully evaluated, we hope to announce a preferred bidder early next year with the service under the new contract starting in April 2006."

The re-tendering of the Northern Isles ferry service was announced in April 2004. The decision to retender early was taken following advice from NorthLink, a company jointly owned by Caledonian MacBrayne and Royal Bank of Scotland, that they were unlikely to be able to complete their existing contract on current terms.

The three passenger and vehicle vessels currently serving the route will transfer to the new operator.

The short listed companies have been invited to submit tenders to the Scottish Executive on the basis of an Invitation to Tender (ITT). Twenty six companies originally noted an expression of interest from which nine Pre Qualification Questionnaires were submitted.

A draft of the ITT service specification detailing the requirements for the service was published in May 2004 with 38 responses received. A report on the consultation was published on the Executive website in September 2004. A summary of the key issues in the tender document is available on the Scottish Executive website, along with the Invitation to Tender document.

Freight (including livestock transport) has been incorporated into the service specification for the new contract. The tender requires the continued use of the existing three roll-on roll-off passenger and vehicle vessels. A separate scheme is being prepared to provide assistance for load-on load-off shipping to the Northern Isles.

The tariff levels of general freight will be reduced on the Aberdeen/Kirkwall (Hastson)/Lerwick routes in each direction, by the order of some 19 per cent on the Kirkwall to Aberdeen route, and 25 per cent from Shetland. Fares increases will be set by inflation indexing using Consumer Prices Index (CPI).

The timescale for the present exercise allows for tenders from the companies to be submitted within 15 weeks. The procurement is following the general principles of the EU Procurement Directives and the requirements of the maritime cabotage Regulation and State aid guidelines.

Page updated: Tuesday, July 19, 2005