CalMac directly awarded contract to run west coast ferry services

CalMac directly awarded contract to run west coast ferry services

Scotland’s west coast ferry services will now be operated by CalMac Ferries Ltd, the existing publicly-owned operator, as the contract has been directly awarded to them by the Scottish government. This decision signifies a shift towards a “public service model” rather than being run solely for commercial purposes. The previous contract for the Clyde and Hebridean Ferry Service (CHFS) was set to expire last September but has since been extended by a year to facilitate this transition. The government’s preference for a direct award without a competitive tender was delayed to ensure legal compliance and avoid potential challenges.

Although the exact details regarding the value and duration of the new contract were not disclosed, the previous eight-year contract for the ferry service amounted to £975m. Estimates suggest that a subsidy of £3.7bn over a decade may be necessary to sustain the service. CalMac, which currently operates UK’s largest ferry network and has been serving 50 destinations since 2016, has faced challenges in maintaining services due to an aging and increasingly unreliable fleet. The ownership of ships and harbours by Caledonian Maritime Assets Ltd has also complicated matters, posing further challenges to service reliability.

Transport Secretary Fiona Hyslop confirmed the direct award in a written parliamentary response, highlighting the shift towards a new public service model for ferry services. This change in approach is expected to enhance services by catering more effectively to the unique needs of the communities they serve. CalMac’s chief executive, Duncan Mackison, expressed support for the new emphasis, emphasizing the need for change to improve service delivery. Mackison noted ongoing efforts to expand local teams, engage more with communities, and respond better to local requirements. With upcoming plans to introduce new vessels between 2025 and 2029, CalMac aims to strengthen their capability to deliver a resilient and dependable service across the Clyde and Hebrides network

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