CalMac Ferries Ltd has been awarded the six year contract to operate lifeline ferry services for the communities of the Clyde and Hebrides, Transport Minister Stewart Stevenson has announced.

 The award means that the new contract securing these vital services will commence on 1 October 2007, for which CalMac was the sole bidder.

Stevenson said: “These ferries provide a vital link for goods and services to be transported to our remote and island communities, sustaining their economies. For these communities, a reliable ferry service is just as important as a new road or rail link in a large town or city. In fact, many would argue that it is even more important than that, as it is their only link to mainland Scotland and beyond.

“The CalMac bid has been closely scrutinised, and the contract incorporates some important service enhancements. This contract will deliver real improvements for all passengers using the services.”

The tender process began in October 2005 with V-Ships UK Ltd and CalMac Ferries Ltd invited to tender. V-Ships UK Ltd withdrew from the process in January 2007, saying that tender process was too restrictive. Stevenson said CalMac’s bid was subject to a robust and thorough evaluation by the Scottish Government assisted by independent financial, legal and maritime technical experts.

He said: “I am aware of the strong feelings around the need for this tender, but completing the process was the quickest way to protect these vital services for those communities who depend on them.

“The new Scottish Government is looking at the fares structure for ferry services. We recently commissioned a study into Road Equivalent Tariff, making clear our desire to deliver a fairer deal for Scotland's ferry passengers.”

The new contract, which will run until 30 September 2013, provides for extending the double vessel service to Islay that has, in the past, operated during the peak summer season so that it covers the whole summer timetable period, and an improved winter timetable for Gigha.

There will also be an additional Friday evening and a Saturday evening sailing between Oban and Craignure on Mull during the winter, an additional daily return sailing on the Ardrossan - Brodick route during the winter, and an additional sailing each week between Oban and Coll/Tiree between late October and Christmas.

A performance regime will also be introduced, which is intended to incentivise the operator to deliver the services to the standards laid down in the contract.

The budgeted subsidy for the first year of the contract is £43m, subject to adjustments as necessary in the light of actual inflation and other factors provided for in the grant agreement, and thereafter will be calculated according to the terms of the detailed grant agreement.

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