CalMac Ferries Ltd has been directly awarded the contract to operate Scotland’s west coast ferry services, in a move the Scottish Government says will usher in a new “public service model” for the lifeline routes. The decision, which bypasses a competitive tender process, comes as the company faces intense scrutiny over persistent reliability problems and a fleet plagued by delays and breakdowns.
Transport Secretary Fiona Hyslop described the direct award as “fundamentally chang[ing] the ethos of the service by shifting from a commercial arrangement to a model more focused on the needs of the communities it serves.” She added, “I fully expect the direct award to be 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.”
Although the precise value and length of the new contract have not been officially disclosed, estimates suggest a subsidy of approximately £3.7 billion will be required over the next decade-making this among the largest public service contracts in Scotland’s recent history.
CalMac’s chief executive, Duncan Mackison, welcomed the move and highlighted the company’s efforts to improve: “During the extension period for the current contract, we recognised the need for change and are already driving change through the expansion of local teams, enhanced community engagement and improved responsiveness to local requirements. This work will allow us to hit the ground running when the new contract starts and, with six major and seven small vessels joining the fleet between 2025 and 2029, our capability to deliver a resilient, reliable service for all across the Clyde and Hebrides will grow.”
The announcement comes against a backdrop of mounting frustration among islanders, politicians, and business leaders over CalMac’s recent performance. The operator has struggled with an aging fleet, frequent breakdowns, and chronic delays in the delivery of new vessels.
In February, CalMac chief executive Duncan Mackison admitted that “a third of its large vessels were currently out of action or operating with reduced capacity,” forcing the company to charter the privately-owned catamaran Alfred at a cost of £1 million per month to maintain basic service levels.
The MV Caledonian Isles, serving the Arran route, has been out of service since early 2024 for extensive repairs, with its return repeatedly delayed.
Four new large ferries being built in Turkey have faced repeated delays, with the first now expected no earlier than the end of June.
Additional technical issues have affected other vessels, leading to cancelled sailings, service suspensions, and reduced capacity across key routes.
The direct award has sparked mixed reactions:
Scottish Conservatives’ transport spokesperson Sue Webber commented :
“While this announcement provides continuity, the bottom line is that CalMac will continue to carry the can for the SNP’s dire mismanagement of the ferry network. Islanders have been betrayed by the SNP time and time again, and any ferry provider is only as good as the fleet it has to work with. Scotland’s ferry network has been run into the ground by successive incompetent SNP ministers. It’s time for them to show some common sense and provide CalMac with a resilient fleet that can properly serve our island communities.”
Jamie Greene, Liberal Democrat MSP, said: “The significant worry I have with [the] direct award [is] that without [a] competitive tender process, there is no mechanism to hold the current operator accountable for its numerous commitments to enhance services.”
The Scottish Government and CalMac have pledged that a new generation of vessels-six major and seven smaller ships-will enter service between 2025 and 2029, aiming to address the chronic shortfall in capacity and reliability. However, with island communities still facing daily disruption, the pressure is on to deliver tangible improvements.
