Calmac preferred bidder for £900m West Coast and Hebrides contract
State-owned ferry service operator wins bid to run the Clyde and Hebrides network over private firm Serco
Public-sector operator Caledonian MacBrayne has been announced as the preferred bidder for the next contract to run west coast ferry services.
The Scottish Government intends to award the eight-year contract to the state-owned firm at the end of the month.
It was competing against Serco Caledonian Ferries Limited for the #1 billion contract to operate the Clyde and Hebrides Ferry Services (CHFS) network.
CalMac currently operates the routes between the west coast mainland and the Hebrides, and between islands. Its contract bid makes almost 350 commitments to improve the service, including investments in vessel and port improvements, increasing traffic, providing more opportunities for local employment, and maintaining all existing routes and services as they are now.
Transport union RMT was among those who campaigned for the contract to be kept in public ownership.
CalMac has also committed to retaining the CalMac pension scheme and a policy of no compulsory redundancies.
First Minister Nicola 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.
"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.
"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 £1 billion 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.''
Kevin Craven, chief executive of Serco's UK central government division, said: "We are obviously disappointed by this decision as we believe that we could have made significant improvements to the quality and reliability of these services to the benefit of the communities across the Western Isles.
"However, the commitments to service and efficiency improvements promised by CalMac Ferries Limited, who have been selected as preferred bidder to continue running Clyde and Hebrides Ferries Services, underline the benefits of testing services provided by the public sector through competitive tender processes.''
RMT general secretary Mick Cash yesterday said the award of the contract was an ''acid test'' for the new Scottish Government, and its pledge to stand up for public services.
Unions were embroiled in an industrial dispute last year, prompted by their concerns about putting CalMac services out to tender.