Contract formally awarded for North Isles ferry service

The next contract to operate the Northern Isles Ferry Services has formally been awarded to Serco NorthLink Ferries, following a series of delays.

The new contract will commence on June 30, this year, immediately following the current contract extension, until June 30 2026, with the option of a further two years.

Minister for energy, connectivity and the islands Paul Wheelhouse said: “This announcement will assure the communities who rely on these services, and the employees who work on them, of the Scottish Government’s continued commitment to the provision of safe, reliable and efficient ferry services to the Northern Isles.”

The formal award initially hit a delay as ferry operator CalMac launched a legal action against Scottish ministers over the award – an action that was later withdrawn. It had been hoped that the formal award would be made by the end of last month, however that deadline came and went.

Kevin Craven, Serco chief executive UK & Europe, said: “Serco is delighted to have been awarded this new contract with Scottish Ministers and to have the opportunity to continue to provide this lifeline service for the Northern Isles for another six years.

“We are very proud of our performance since we first won the contract in 2012, during which time we have improved almost every aspect of the service while also significantly reducing the annual subsidy and thereby lowering the burden on the Scottish taxpayer.

“Serco will now build on that track record and success to bring further improvements in the coming years for the communities and businesses of the Northern Isles.”

The company has said it plans to introduce a number of improvements to the service including the improvement of the terminal facilities at Hatston, a smart ticketing system for foot passengers, a new demand analysis and forecasting model and a new “Green Travel” campaign aimed at customers and employees, together with a new Carbon Reduction strategy to reduce emissions.

The news of the award has been welcomed in some political corners, with Highlands and Islands MP, Jamie Halcro Johnston saying he is sure ferry-users across the Northern Isles will share his relief that the contract has been finally awarded.

However, the Scottish Greens’ John Finnie has been less welcoming, saying he has concerns relating to Serco’s industrial relations record.

He said: “The Scottish Government can be assured that I will continue to raise the concerns of workers, trade union and my norther isles constituents relating to the operation of these vital ferry services.”