Caledonian MacBrayne wins £900m ferry contract in Scotland
Caledonian MacBrayne has won a £900m contract to operate the Clyde and Hebrides Ferries Network after stiff competition from Serco.
CalMac, which is state owned, had to compete against Serco Caledonian Ferries Limited to continue running the service after EU rules meant the Scottish government was forced to open up the network to competitive bids.
The new contract covers an eight year period starting 1 October.
The Scottish government and CalMac had clashed over the tendering process, which compelled the creation of an independent panel to provide the process – which it ended up deeming "fair, open and transparent".
CalMac managing director Martin Dorchester 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.
"Now the hard work begins in delivering this contract during challenging economic times."
Read more: Eurotunnel wins appeal to keep running its cross-Channel ferries
In the end, CalMac won out after its bid included 350 commitments to improve the service, including £6m investment in vessel and port improvements.
It also committed to keeping its pension scheme, providing more apprenticeships and opportunities for local employment
First Minister Nicola Sturgeon said: "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."