Procurement underway on next Northern Isles ferry contract
PROCUREMENT for the next contract to operate the Northern Isles Ferry Service (NIFS) is underway, following publication of the contract notice.
The contract – named NIFS4 – is estimated to see around £850 million invested in the ferry services over a 10-year period and will include the operation of two freight-flex vessels for the Aberdeen to Kirkwall/Lerwick route by early 2029.
Two new passenger vessels are also expected to be delivered within the lifetime of the contract.
Development of the requirements of the contract will be informed by the views of stakeholders, operational feasibility, wider transport policy objectives and affordability.
Following a pre-qualification phase the NIFS4 tender documents will be issued to bidders later this year, with the new contract set to commence on 30 June 2028.
The current contract holder is Serco NorthLink.
Cabinet secretary transport Stephen Flynn said: “The Northern Isles Ferry Services play a vital role for the communities of Orkney and Shetland, and the Scottish Government remains committed to delivering reliable and robust ferry links for those who depend on them.
“The publication of the contract notice marks the formal start of procurement for the next Northern Isles Ferry Services contract, inviting interest from potential operators.
“Progress has already been made to enhance the resilience and accessibility of these ferry services, with the introduction of new lie-flat accommodation, removal of mid and peak season fares for islanders, and contract award to build two freight-flex vessels for the Aberdeen to Kirkwall/Lerwick route – improving service efficiency and capacity for years to come.
“We will continue to take the views of island residents and businesses into account to ensure the contract reflects local priorities throughout its delivery.”
The total estimated contract value for NIFS4 is based on both the longer duration of the contract and significant investment in new vessels.
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