News / Serco pledge to improve on NorthLink
SHETLAND was shocked by news on Friday afternoon that NorthLink look set to lose the lifeline ferry contract to multinational company Serco, whose main involvement in the isles is operating Scatsta airport.
Shetland MSP Tavish Scott said he and his Liberal Democrat colleague Liam McArthur had been left in the dark about the six year contract worth £243 million and will be seeking to meet the company on Monday.
Scottish transport minister Keith Brown said Serco would be using the same ferries Hjaltland, Hrossey and Hamnavoe as well as the two freight vessels Hildasay and Helliar.
Fares will remain the same for the time being and existing staff will be allowed to transfer to the new operator under TUPE rules once the contract has been signed on 15 May, with Serco taking over in July.
The multinational firm claims to operate more UK flag vessels than any other company, but these are on behalf of the Royal Navy. The only civilian service they run is the Woolwich Ferry in London. They do operate several rail services and other transport operations.
Serco is offering an improved service between the northern isles and the Scottish mainland, with an end to the extended dry dock period. The Orkney ferry Hamnavoe will not be replaced by a Shetland boat during its refit.
They promise to engage with customers, local authorities, other transport operators, local politicians and business and community groups between mid May and July to allow a smooth and seamless transition.
The company said services will be extensively modernised, with a more innovative approach to marketing and improvements in customer care at every stage of the journey – from ticket purchase through to arrival and disembarkation.
They also pledge to work with local businesses and to prioritise local suppliers, as NorthLink currently do.
Fares will remain the same for the first two years after which the company expects to introduce some innovative approaches to marketing, probably along similar lines to airline operators.
Scottish transport minister Keith Brown said: “The new contract rectifies many of the difficulties of the one we inherited in particular the recent difficulties with the extended dry dock period.
“The new arrangements ensure we will avoid the situation where vessels have been laid up for long periods of time. Hjaltland and Hrossay will not be used to relieve the Scrabster-Stromness route as has happened in the past. A different replacement vessel will be used to cover Hamnavoe’s dry-dock periods.
“The needs of vital time sensitive freight exports like fish and seasonal livestock and vital imports like supermarket goods will be met, and the services available for passengers will be improved.
“Passengers will see improvements to the journey experience with improved ticketing arrangements, premium reclining seats added on board overnight services, and improved catering, hospitality and customer care facilities.
“Crucially, clear commitments that crossing times, including the 90 minute crossing between Scrabster and Stromness, will also be retained.”
Chief executive Jeremy Stafford said: “We are delighted to have been chosen by Transport Scotland for this crucial lifeline ferry service. By drawing on our proven transport and marine expertise, I am confident that we can give passengers and customers a better service and deliver really good value for the Scottish government.
“We are very proud of our long record of public service in Scotland, and this contract will be a distinguished addition to that.”
Six companies originally bid for the contract in February, with a shortlist of four being drawn up in March. It followed a public consultation which received 400 responses.
Tavish Scott said he found it “extraordinary” that the Scottish government were making the announcement on the day of the local government election. “I think it’s very disappointing this announcement wasn’t made a few weeks ago.”
Shetland Islands Council’s chief executive Alistair Buchan sounded equally surprised when he said: “We look forward to receiving the details of the new arrangements. It’s obviously crucial that there is continuity in the provision of Shetland’s lifeline ferry service, and it is important that issues such as the level of service during refit periods are addressed.
“Shetland’s newly-elected council will obviously look at the matter at the earliest opportunity, and our officers will work hard to support them in safeguarding Shetland’s interests on this crucial issue.”
A NorthLink spokesman said: “We’re very disappointed not to have been chosen as preferred bidder by the Scottish government. We believe that we submitted a bid which would have benefited islander and taxpayer alike.
“We believe that as the operator for the past decade we have developed a lifeline ferry service of which we can be extremely proud.
“We want to take this opportunity to thank islanders and customers for their support over the past decade. Importantly, we also want to take this opportunity to thank our staff who have performed selflessly over the past ten years to provide the lifeline ferry service which islanders expect and deserve.”
Serco currently operates 120 vessels for the Royal Navy, including at the nuclear base at Faslane, roadside emergency phones for Transport Scotland, rail services, two hospitals and Kilmarnock prison.
The Scrabster-Stromness service will be included in the contract
Importantly, the minister also said: “We made clear in our draft ferries plans that we see road equivalent tariff (RET) as the basis for setting fares in Scotland and have stated our clear aim to implement RET-based fares across every route in Scotland, including the northern isles.
“We will set out next year our proposals on how and when that will take place.”
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