Why does CalMac still run Scotland's ferries amidst continuing ire?

The Herald Scotland

03-06-2025

The community council on the island which had told CalMac last week of the "critical importance" of either a backup plan or to get the 14-year-old ferry back in service in time for the annual Fèis Ìle, or Islay Festival that starts tomorrow (Friday) says there is already "major disruption".
It came as those on South Uist and the broader Western Isles are among those who have expressed deep frustration over the state of ferry services, citing frequent cancellations, economic hardships, and feelings of neglect.
One business group on South Uist, which prompted a review over how state-owned ferry operator CalMac acts during lifeline ferry breakdowns as it copes with an ageing fleet - has previously raised concerns that it has made no difference as it continues to be the victim of cuts.
What is the concern on Islay?
It's key ferry MV Finlaggan has been sidelined for ten days as problems have emerged during routine planned maintenance of main engines during an annual overhaul period.
Key island haulier B Mundell has spoken out about the issues having on Wednesday been told they could not get a booking for trailer full of life-critical medical supplies and core and key infrastructure supplies to keep the island functioning.
What was the issue on South Uist?
Residents said they felt "forgotten, abandoned, and ignored" due to repeated ferry cancellations over recent years. In June 2023, CalMac rerouted the MV Lord of the Isles, leaving South Uist without direct sailings to the mainland for nearly the entire month. This followed a four-week suspension between April and May and led to a major protest involving an estimated 500 residents.
The disruptions have led to business losses and concerns about population decline as some residents consider relocating.
The current concern is that MV Lord of the Isles has been lost yet again to cover for problems elsewhere at a time when it was thought CalMac had rethought its strategy.
What causes these frequent service disruptions?
The primary issue is the ageing ferry fleet, caused by a lack of investment in the ferries which continues to hit services, as the state-owned ferry operator CalMac looks to juggle its resources to cover what are lifeline services as best it can.
Four years ago, more than half of Scotland's lifeline ferry network was operating outwith its working life expectancy - being over 25 year old.
MV Isle of Cumbrae (Image: Newsquest) The oldest in the CalMac fleet is is the Isle of Cumbrae which is now 23 years past its working life expectancy at 44-year-old.
The MV Lord of the Isles, serving South Uist, is itself over 30 years old and has experienced multiple mechanical failures, including corroded steel, radar faults, and engine issues. Such problems necessitate extended repairs, during which no replacement vessels are available due to fleet limitations. ​
How do these disruptions impact the local economy?
Local businesses, especially those dependent on tourism and ferry traffic, suffer significant losses during service outages. For instance, a food takeaway near the Lochboisdale ferry terminal on South Uist reported losing hundreds of pounds per sailing, leading to reduced staff hours and cancelled tourist bookings.
Read more from Martin Williams:
What is being done to address the ferry service issues?
The Scottish Government pledged £580 million over five years to improve ferry services, including procuring new vessels. However, delays in constructing new ferries, such as Glen Sannox and Glen Rosa at the state-owned Ferguson Marine shipyard, have hindered progress.
The Glen Sannox finally commenced service in early 2025, with the Glen Rosa now not expected to arrive till between April and June next year. Additionally, new ferries like the MV Isle of Islay and MV Loch Indaal are planned to enhance service reliability.
A contract has also been awarded to a Polish firm for the construction of seven new electric battery-powered vessels for smaller routes.
How are the ferry services paid for?
CalMac, under a contract awarded by Transport Scotland, gets subsidies to cover operational costs not met by fare revenues. The current £975m eight-year Clyde and Hebrides Ferry Services (CHFS) contract expired in September 2024.
But CalMac are getting a contract directly from ministers without going to a competitive tender to continue running services for another ten years. The contract is worth £3.7bn.
While passengers pay fares to use ferry services, they typically cover only a portion of the operating costs.
CalMac (Image: PA) The subsidies are in place because some ferry routes are not commercially viable due to low passenger volumes and high operating costs. Subsidies ensure that island communities remain connected to the mainland, supporting local economies and access to essential services.​
Last year it was announced that ferry fears would increase by 10% from this year to allow the continued support of the ferries network in future years.
How are new ferries paid for?
The Scottish Government, or the taxpayer provides capital funding for new ferries via Transport Scotland. This funding is often channelled through "voted loans" to a separate state-owned company, Caledonian Maritime Assets Limited, which owns the ferries, ports, harbours and infrastructure.
While funding mechanisms are in place, critics say challenges in procurement and project management have highlighted the need for ongoing oversight and reform.
Why did the Scottish Government decide to go ahead with the award directly to CalMac while there is a level of upset over how ferry services are delivered?
The transport secretary Fiona Hyslop said that a direct award "fundamentally changes the ethos of the service by shifting from a commercial arrangement to a model more focused on the delivery of a public service engaged on the particular needs of the communities it serves". The Herald has asked what this means and has still been awaiting a response.
The way CalMac operates means that profits are already not distributed to shareholders but are instead reinvested into the company to maintain and enhance ferry services.
She said she expects it will become a "catalyst for positive change across the Clyde and Hebrides network, based on a more efficient, flexible model of delivery that fully reflects community interests."
Transport Scotland was asked to explain whether there were any value for money benefits.
What is the community's stance on this approach?
While the Scottish Government sees a direct award as beneficial, some community representatives have voiced opposition. Concerns include potential service quality issues and the lack of competitive pressure to drive improvements.