Northern Isles Ferry Services
Northern Isles Ferry Services Tendering 2004-06
Transport Minister, Nicol Stephen MSP, announced on 8 April 2004 that lifeline ferry services to Orkney and Shetland were to be secured through early retendering of the contract for the Northern Isles routes. The decision to retender was taken following financial difficulties faced by the operator NorthLink Orkney and Shetland Ferries Ltd.
Ten shipping operators expressed interest in operating the ferry services following European Union wide advertisement including the Official Journal of the European Union. The draft service specification, setting out the terms and conditions to operate the services was published on 27 May 2004. A consultation paper was issued along with the draft service specification, seeking responses by 16 July 2004.
The consultation document and draft service specification can be viewed here.
Thirty five responses were received by the closing date. These were analysed, and a report was published on the Executive website. A report on the responses received can be viewed here.
The responses to the consultation informed the final draft of the Invitation to Tender, which was issued to Caledonian MacBrayne Ltd (CalMac), V Ships (UK) Limited and Irish Continental Group on 18 July 2006.
The text of the Invitation to Tender can be viewed here.
Irish Continental Group withdrew from the tendering process on 9 October 2005. Bids from CalMac and V Ships were received on the closing date of 1 December 2005. Following detailed technical and financial analysis by key specialists both bids complied with the tender requirements and, therefore, the bid requiring the lowest financial compensation was selected. CalMac was appointed preferred bidder on 9 March 2006. The Scottish Executive concluded negotiations and signed a six-year contract with NorthLink Ferries Limited on 6 July 2006. A new company was established by CalMac to operate the contract from that date.
The Scottish Executive signed a six-year contract for the Northern Isles ferry service with NorthLink Ferries Limited on 6th July 2006.
See the Northern Isles Ferry Link Agreement.
See the NorthLink Ferries website.
Transport Minister, Tavish Scott MSP, announced on 28 March 2007 the issue of tenders to support a lift-on - lift-off freight shipping service to the Northern Isles. The Invitation to Tender (ITT) can be viewed here. A local news release was issued. As a result of this tender process the Scottish Government concluded a contract with Shetland Line (1984) Ltd, part of the Streamline Shipping Group Ltd, on 30 May 2008. A copy of the Public Service Contract is also attached, along with a copy of the local news release issued about the announcement made by the Scottish Government Transport Minister Stewart Stevenson MSP.