This item was published during the term of a previous administration that ended in April 2007
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Calmac preferred bidder in north
09/03/2006
Caledonian MacBrayne has been chosen as the preferred bidder for the ferry services to Orkney and Shetland.
The new service, with an early summer handover planned, will introduce a number of improvements to the lifeline routes, including:
- Reduced freight tariffs; Orkney - 19 per cent, Shetland - 25 per cent
- 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
Bids were submitted by V-Ships UK Ltd and Caledonian MacBrayne which runs ferry services on the West Coast. Handover from the current operator, NorthLink, on matters such as passenger and freight booking services, will be seamless.
Transport Minister Tavish 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."
The Caledonian MacBrayne tender includes plans for new livestock containers, as required in the Invitation to Tender. The plans have been assessed by ERAD and DEFRA specialists as providing a satisfactory approach. Prototypes of the containers will be trialled in 2006 in time for introduction in 2007. Once the contract is concluded the new operator will liaise closely with the livestock industry on their detailed plans and implementation arrangements. For the 2006 livestock season, the stock boat arrangements have been secured.
The Executive shall announce further details of the contract including the contract value and service levels, and the agreed handover date, when discussions with the preferred bidder have been concluded and a contract signed.
The Northern Isles passenger and vehicle ferry services tender process begun in April 2004, and involved a detailed local consultation in the spring and summer of that year. The contract being awarded is a six year block grant public service contract under the EC Maritime Cabotage Regulation and Guidelines for State Aids in the maritime sector. The details of the main terms and conditions of the subsidy and level of grant anticipated will be provided once contract discussions are concluded.