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The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Why does CalMac still run Scotland's ferries amidst continuing ire?
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.
The Herald Scotland
04-05-2025
- Business
- The Herald Scotland
Why is CalMac getting stick about the state of Scotland's ferries
What does CalMac do? CalMac is the principal ferry operator serving Scotland's west coast. It operates lifeline passenger and vehicle ferries connecting the mainland to over 20 major islands, including routes to Arran, Mull, Islay, and the Outer Hebrides. CalMac is a subsidiary of David MacBrayne Ltd, which is wholly owned by the Scottish Government. The company manages a fleet of over 30 ageing vessels. Who funds CalMac's operations? CalMac's operations are primarily funded by the Scottish Government through public service contracts. The vessels and port infrastructure are owned by Caledonian Maritime Assets Ltd (CMAL), another state-owned entity. CMAL leases these assets to CalMac, which operates the ferry services under contract. The Scottish Government awarded CalMac a £1 billion publicly funded contract to run lifeline services in 2016. Why is such a fuss being made over Scotland's island ferries and CalMac's role Ferry services run by state-owned ferry operator CalMac are vital lifelines for Scotland's island communities, facilitating the transport of people, goods, and services. Frequent breakdowns and service cancellations have led to significant disruptions, affecting local economies, daily life and vital tourist trade. Read more: Revealed: The agreed £100k+ payment to 'sacked' Scots ferry chief for doing nothing Call for rethink over ScotGov control of ferries New concern as Scots ferry fiasco firm confirms 'revised build plan' for vessel Why do islanders continue to be angry about the state of Scotland's ferries? Paid to fail: The 'scandal' of £300k bonuses & perks for ScotGov-owned CalMac execs Ongoing challenges with Scotland's ferry services stem from a combination of an aging fleet, delayed replacement projects, and increased demand. While investments are being made to address these issues, the effects of delays of new ferry deliveries continue to impact the reliability of services critical to island communities. Key to the concern is over a past lack of investment in new ferries to replace ageing vessels which continues to hit services, as CalMac looks to juggle its resources to cover what are lifeline services as best it can. But there has been criticism over how CalMac has handled that juggling of operations and has been under fire for how it prioritises routes, and communicates with customers - leading to he Scottish Government to call for a shake-up. Four years ago, more than half of Scotland's lifeline ferry network was operating outwith its working life expectancy - being over 25 years 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 48-years-old. What challenges arise from maintaining such an old fleet? Maintaining older vessels is both costly and time-consuming. Spare parts for these ships are often no longer manufactured, necessitating custom fabrication, which leads to longer repair times and higher expenses. Even so, almost £100m has been spent over the past decade on repairs for eight of the largest publicly owned ferries in Scotland. The 31-year-old MV Caledonian Isles – which sails between Ardrossan and Brodick, on the Isle of Arran – cost the most to repair. As of January, some £22m was spent on work on the ship over ten years, including £7m on repairs that kept the ferry out of service for most of last year. It was put out of action since going for an overhaul at the start of January, last year and has still not returned. Why haven't the ferries been replaced more promptly? Efforts to renew the fleet have faced significant setbacks. In 2015, the Scottish Government commissioned two new ferries—Glen Sannox and Glen Rosa from Ferguson Marine shipyard. However, the project has been plagued by delays and cost overruns. Originally budgeted at £97 million, costs have escalated to over four times that amount with delays over bringing them into service running to over seven years. In the midst of the problems, Ferguson Marine went into administration in 2019, leading to the Scottish Government nationalising the shipyard. How do the issues impact island communities? Delays and cancellations have hindered the transport of goods and services, affecting local businesses and agriculture. Unreliable ferry services have also led to increased isolation, with residents facing challenges in accessing healthcare, education, and employment opportunities. The ongoing issues have also eroded public trust in the ferry services which hits tourism on the islands. It has also led to criticism over the government's ability to manage critical infrastructure effectively. What do communities think of CalMac? The vast majority are supportive of the staff who run that services. But there is continuing concern about the management of CalMac. The Scottish Government's bid to provide a direct public contract to CalMac to run the ageing ferry fleet without going through a competitive tendering process has been opposed by its own community board. CalMac (Image: Newsquest) The ferry operator received some £10.5m in poor performance fines in the six-and-a-half years since CalMac took the franchise – nearly eight times more than in its first nine years in charge of the west coast fleet. The Ferries Community Board, formed as part of CalMac's franchise bid for the CHFS to be the voice of the communities, said communities represented "unanimously" do not support a direct award of the next contract. It said that go gain community support for a long term directly awarded contract, they would need to see "significant change in the structure organisation and culture of the management and operation of the ferry services". Residents of 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 - raised further concerns last week it has made no difference as it continues to be the victim of cuts. Who is Robbie Drummond, and why did he step down as CalMac's chief executive? Robbie Drummond became chief executive in October 2022 after being managing director for four years and service delivery director before that. He served as chief executive till April 2024 when he stepped down amid ongoing challenges with the ferry fleet and service disruptions. It has been confirmed that he was "removed" from his position. His departure came as CalMac faced criticism over its handling of ferry services amidst delays in the arrival of new ferries and maintenance issues with the old ones. Robbie Drummond (Image: NQ) CalMac cited 'challenges' over its service to island communities and said these are 'likely set to continue until new vessels are introduced to the fleet over the coming years". When announcing his departure, CalMac said island communities had faced "real challenges" around their ferry services. "These challenges are likely set to continue until new vessels are introduced to the fleet over the coming years," it said. "In this context, the board wants to strengthen the focus further on operational performance of an aging fleet, resilience and enhanced dialogue and responsiveness with the customers and the communities CalMac serves." It added: "As a consequence, the board has reviewed the executive leadership of the organisation to ensure that it is best placed to achieve that during some challenging years ahead." What steps are being taken to address issues? The Scottish Government pledged £580m over five years to enhance ferry services, with about half of it for the procurement of new vessels. Contracts have been signed with a Turkish shipyard for four new ferries as Transport Scotland aims to reduce the average fleet age to around 15 years by investing in new vessels and improving reliability. The Glen Sannox finally commenced service in early 2025, with the Glen Rosa expected by September 2025, although there are worries it may not be available till 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 for the construction of seven new electric battery-powered vessels for smaller routes.
The Herald Scotland
30-04-2025
- General
- The Herald Scotland
CalMac: Why do islanders continue to be angry over ferries?
South Uist has been particularly badly hit by a shortage of vessels on lifeline ferry routes and has been served by 37-year-old veteran MV Isle of Mull which is restricted to just 45 passengers since the start of the year ,while its regular ship - MV Lord of the Isles covers elsewhere. For several years South Uist has regularly been the victim of cuts due to ferry breakdowns and delays in annual maintenance which climaxed in losing their service completely for nearly the whole of June, 2023. What is the concern on South Uist? Residents said they feel "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 expected by September 2025, although there are worries it may not be available till 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 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 expires in September 2024. 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.
