CalMac has been awarded a £900m contract to operate the Clyde and Hebrides ferry network.

The Scottish Government had come under pressure from shipping union RMT to award the contract to CalMac in order to keep ferry services in public ownership.

First Minister Nicola Sturgeon announced CalMac as the preferred tenderer for the contract, worth almost £1bn, on Thursday morning. The tender price for the next contract is around £900m for eight years from October 1 this year.

CalMac’s bid makes almost 350 commitments to improve the service, aiming to help drive economic growth, improve customer service and make sure the company delivers value for money.

ADVERT

The firms proposals include retaining the CalMac pension scheme and a policy of no compulsory redundancies; £6m investment in vessel and port improvements; the introduction of an integrated ticketing systems on key routes and an increase in passenger/vehicle traffic by 10% and commercial traffic by 12% over the course of the contract.

The ferry operator also said it would provide more opportunities for local employment, including more apprenticeships; better involve communities in investment and services decision and maintaining its status as a living wage employer.

Ms Sturgeon said: “I’m very pleased to announce CalMac Ferries Ltd as our preferred bidder for the next Clyde and Hebrides Ferry Services contract.

“CalMac have a long and proud tradition of running the Clyde and Hebrides routes, and the company is woven into the fabric of the communities they serve.

ADVERT

“Their tender offers a good deal for those communities served by these vital transport links and ensures that we can maximise the opportunities to support and nurture our island economies.”

She added: “CalMac will better manage demand to drive an increase in traffic, as well as make the ferry services more attractive with the introduction of smart ticketing on key routes.

“The Scottish Government has made a clear commitment to our ferry services, investing a record £1bn in port infrastructure, vessels and services since 2007.

“Scottish ministers will retain control of all of important issues, such as fares and timetables, through the public service contract. Vessels and port infrastructure will also remain publicly owned as they are now.

“This new contract looks to make further improvements our ferry services, and I look forward to CalMac starting the new contract later this year.”

Martin Dorchester, managing director of CalMac said: “We are proud to be given the opportunity to transform ferry passengers’ experience across the west coast of Scotland and to work closely with our partners to connect towns, cities and communities like never before.

“Our successful bid demonstrates our ability to provide innovative service improvements and value for money for customers. Drawing on our experience in the UK ferry market where we have won a number of awards, our bid delivers industry-leading customer care and high standards of reliability.

ADVERT

“The detail of our bid is confidential until the formal procurement process is concluded, however among the things that people can look forward to seeing are more opportunities for local employment; a refreshed on-board retail offering; investment in on-board facilities; closer, more responsive working with communities and an innovative approach to vessel maintenance to minimise disruption to services especially during the winter refit period.

“Our commitment to safety, support for local economies and businesses and protecting the very special environment in which we operate will not change.”

The decision to award the contract to CalMac was welcomed by Scottish Labour Highlands and Islands MSP David Stewart.

Stewart said: “Labour welcomes this announcement, which is completely the right decision. These ferry services are part of the DNA of our island communities and it is absolutely right that they have stayed in public hands.

“This shows what can be achieved when Labour, trade unions and communities work together.

“It is clear that a tendering process was not necessary, and we have to ask why the SNP Government thought it was necessary to go throw a costly and time consuming process, which put the future of a public CalMac at risk, when it simply didn’t need to.

“Labour will now make the case for halting the tendering processes for the Gourock to Dunoon and Northern Isles Services contracts.”

Scottish Green MSP John Finnie also welcoemd the move saying that the services are a “lifeline”.

Finnie said: “This is the right decision by Scottish ministers. Lifeline public services such as west coast ferry routes must be kept in public hands. It’s welcome that by keeping Calmac public the workers’ pension scheme is protected, along with a policy of no compulsory redundancies. The employment Calmac provides is vital in rural and island communities.”