Caledonian Maritime Assets Limited has identified Guangzhou Shipyard International in China as the lead bidder for a contract to build two new freight flex vessels for the Northern Isles route.

The award remains subject to a 10-day standstill period, with CMAL stating it expects to finalise the contract on 24 March.

The two 140-metre vessels will replace Helliar and Hildasay on the Aberdeen to Kirkwall and Lerwick service operated by Serco NorthLink Ferries. They are intended to provide increased freight capacity, faster crossings and the flexibility to carry up to 200 passengers during peak periods.

Four shipyards were invited to tender following an initial qualification stage. Bids were assessed on a 70 per cent technical and 30 per cent financial basis by a panel including third-party specialists and CMAL representatives. When combined, Guangzhou Shipyard International’s submission achieved the highest overall score.

Cabinet Secretary for Transport Fiona Hyslop said: “I welcome this important milestone being reached in the procurement to build and deliver two freight flex vessels to serve the Northern Isles network.

These replacement freight vessels will bring additional freight capacity, higher operating speeds and the ability to carry up to 200 passengers on each vessel during peak times – helping address demand for car deck and cabin capacity on these routes. This will enhance the efficiency and reliability of ferry services to better support the priorities of Northern Isles communities and businesses for years to come.

I appreciate all the work, particularly by CMAL and NorthLink, that has gone into getting us to this vital stage of the procurement process, and I am hopeful that we can look forward to contracts being signed at the end of the standstill period.”

CMAL chief executive Kevin Hobbs said: “GSI’s bid demonstrated a commitment to innovation and efficiency, and we are confident they will deliver a reliable, robust pair of vessels to support the Northern Isles Ferry Service for years to come. This commitment is underpinned by strong workforce policies and internationally recognised environmental and safety management standards.

We will now enter a 10-day standstill period before finalising the contract on the 24th March.”

Stuart Garrett, managing director at Serco NorthLink Ferries, said: “We are delighted that the Freight Flex contract has reached this key milestone with lead bidder selection. We look forward to working together with all parties as we move to the next stage in delivering this design and build project which will be a game changer for the Northern Isles.”

The vessels will be owned by CMAL and leased to Serco NorthLink Ferries under the existing operating model. CMAL is wholly owned by the Scottish Government and is responsible for procuring and owning ferries and harbour infrastructure. It does not operate services directly, instead leasing vessels to operators such as CalMac Ferries Ltd and Serco NorthLink Ferries, which run services under contract to the Scottish Government. CMAL currently owns 37 vessels and 26 harbours, with five ships leased to NorthLink for Orkney and Shetland routes.

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

6 COMMENTS

  1. Instead they should waste millions of taxpayers money on building ships with Fergerson marine that will cost 10 times, takes 5 times longer to build and wont work.

  2. Money spent here benefits more of us, for sheer low cost China always wins. Its should be about how much the governent gets back in tax/vat from the companies and workers here. Cost alone never seems to work in the long run, when you factor in lost investment here and may be lost jobs.

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