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Serco awarded ?450m Northern Isles ferry contract
20th Sep 2019 09:16
(Sharecast News) - Serco has been selected as preferred bidder to continue managing and operating Northern Isles Ferry Services.
The new contract, which is worth around £450m over an initial six-year term, is expected to start in the fourth quarter and will see Serco continue to ferry passengers and freight between the Scottish mainland and the Orkney Islands and Shetland Islands, having managed the service since 2012.
The service provider could still be managing the ferry services in 2027, as Scottish Ministers have the option to extend the contract for another two years for a further £160m.
Planned improvements to the service include a new smart ticketing system, a carbon strategy to reduce emissions and renovation of some terminal facilities in the Orkney Islands.
Chief executive Rupert Soames said: "We are very proud of our track record over the past seven years, during which time we have improved almost every aspect of the lifeline service for the communities and businesses of the Northern Isles, while also reducing materially the annual subsidy and thereby reducing the burden on the Scottish taxpayer. We look forward to further improving the service in the coming years."
Serco shares were up 1.62% at 150.80p at 0938 BST.
The new contract, which is worth around £450m over an initial six-year term, is expected to start in the fourth quarter and will see Serco continue to ferry passengers and freight between the Scottish mainland and the Orkney Islands and Shetland Islands, having managed the service since 2012.
The service provider could still be managing the ferry services in 2027, as Scottish Ministers have the option to extend the contract for another two years for a further £160m.
Planned improvements to the service include a new smart ticketing system, a carbon strategy to reduce emissions and renovation of some terminal facilities in the Orkney Islands.
Chief executive Rupert Soames said: "We are very proud of our track record over the past seven years, during which time we have improved almost every aspect of the lifeline service for the communities and businesses of the Northern Isles, while also reducing materially the annual subsidy and thereby reducing the burden on the Scottish taxpayer. We look forward to further improving the service in the coming years."
Serco shares were up 1.62% at 150.80p at 0938 BST.