Northern Isles Ferry Services 4 (NIFS4)

Tender description

Provision of public services in relation to the Northern Isles Ferry Services to/or from harbours located at Aberdeen, Kirkwall, Lerwick, Scrabster and Stromness. The services currently comprise of 5 vessels (3 Ro-Pax and 2 RoRo freighters) to deliver the Ferry Services. Further pre-tender information will be provided with the contract notice. Further information on Transport Scotland can be accessed through the Transport Scotland website at: www.transportscotland.gov.uk Lot 1: Transport Scotland, on behalf of Scottish Ministers intend to execute a new contract for the provision of Ferry Services in relation to the operation of passenger, vehicle, and freight services in the Northern Isles. This will replace the existing public services contract which expires on 30 June 2028 at 1400hrs. The duration of the contract will be a maximum of 10 years ( 8 years + 2 years). The principal service is a subsidy for the Northern Isles Ferry Services (NIFS) for foot passengers, vehicles and Freight. The NIFS network provides vital year-round transportation between mainland Scotland and the Orkney and Shetland Islands. The services connect Aberdeen to Lerwick (Shetland), with some sailings stopping at Kirkwall (Orkney), and Scrabster to Stromness (Orkney). Vessels are provided via a bareboat charter agreement from Caledonian Maritime Assets Ltd (CMAL). The indicative outturn cost of the current NIFS3 contract, covering the eight-year period ending in June 2028, is estimated to be in the region of 370 million GBP. The next iteration of the service will be delivered through the NIFS4 contract, with forecast costs based on a ten year term running to 2038. This contract is expected to include the introduction of two new Freight Flex vessels in the early years of the contract followed by three new RoPax vessels. The extended contract duration and the enhanced fleet deployment will increase the overall net operating cost requirements. These costs will remain subject to ongoing review as project costs, timelines and finance arrangements are refined. An estimated contract value range for NIFS4 will be provided within the Contract Notice and SPD. This estimate will be derived from assumptions on a number of variables including fuel prices, fares policy, the deployment schedule for new vessels throughout the contract duration, and the continuation of existing funding mechanisms associated with those vessels. Please note that any future changes to fares policy, vessel deployment plans, or funding arrangements will influence the final budget required for the NIFS4 contract. The procurement will be conducted using the Restricted Procedure.