Scotland tenders £370m ferry contract after insourcing back-track

 

The Scottish Government has begun procurement of a £370m contract to operate the Northern Isles Ferry Services.

Scottish ministers had previously said they intended to bring the contract in-house but in May the then transport minister, Humza Yousaf said he was abiding by the preference of the local communities, which was for the contract to be put out to tender.

The published contract notice covers services between mainland Scotland and Orkney and Shetland for eight years, with all routes tendered as a single bundle. Transport Scotland said it will be ‘worth an estimated £370m’.

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Transport Scotland said that Invitation To Tender documents will be issued early in the new year, with a view to awarding the contract in Summer 2019.

The current contract, with Serco, is due to run out in October next year after an 18-month extension to what was a six-year contract.

Minister for energy, connectivity and the Islands Paul Wheelhouse said: 'We have always said we would take the views of the local community into account and, through the consultation process, it was clear that their preference is for this contract to be put out to tender.

'Scottish Ministers will retain control of all important issues, like routes, timetables and fares, under the terms of the public service contract. All the routes will be tendered as a single bundle and all existing vessels will be made available to the successful bidder.'

 

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