SPT Q&A on Kilcreggan Ferry Service

Renewal of Gourock – Kilcreggan ferry contract

Q.    Who is the current operator of the ferry contract and what is the current annual cost to the public purse?
A.    The current operator is Clyde Marine Motoring Ltd and the amount of annual subsidy is £368,517.

Q.    Who is the proposed operator of the new ferry contract and what will be the annual cost to the public purse?  
A.    The proposed operator is Clydelink Ltd and the amount of annual subsidy will be £174,950. (NB. The description ‘proposed’ is used throughout to reflect the fact that, at the time of writing, the contract has not yet been formally awarded, it being subject to the normal EU standstill period).

Q.    What was the renewal process for the contract?
A.    An open tendering exercise took place under EU procurement regulations, with invitations to tender open to all interested companies.

Q.    What is the proposed timetable?
A.    Attached, but please note that, as a result of the potential repair work to be carried out by CMAL on the Kilcreggan Steps (see final question) it may be necessary to introduce some slight alterations to times.

Q.    Why was it decided to withdraw the link to Helensburgh?  
A.    Before the tendering exercise commenced in 2011, SPT carried out analysis of passenger numbers and journey trends in order to devise a ferry tender specification which not only addressed the socially-necessary transport links required but also ensured the effective use of the significant amount of public money involved (£368,517 per annum at present).

The data clearly demonstrated that the core users of the ferry service are between Gourock and Kilcreggan, with Helensburgh representing only 7% of total passenger traffic, with an average of 2.6 passengers per sailing. The subsidy cost per passenger trip between Gourock and Kilcreggan is approximately £3.00, whilst that of the Helensburgh link is approximately £20.00 per passenger trip. (This was borne out by subsequent discussions with the incumbent operator of the service, Clyde Marine, which readily agreed that uptake of the Helensburgh link was very poor).

A specification was constructed which took account of all these factors, and SPT tendered the core socially-necessary service between Gourock and Kilcreggan but invited operators to consider providing options for a service to Helensburgh and other locations in the Firth of Clyde. SPT offered tenderers additional financial support – over and above any subsidy for the core service - for such initiatives.

Clyde Marine was the only tenderer and offered the Gourock – Kilcreggan element - excluding a Sunday service during the summer period - at a price of £359,363 per annum. Given the reductions in sailings and hours operated, it was felt that this price (only £9154 less than the current cost which includes both the Helensburgh link and a Sunday service) did not represent good value for the public purse and a further tendering exercise was therefore carried out.


As a result of this second tendering exercise, Clydelink Ltd submitted a price of £174,950 per annum to provide the core Monday – Saturday Gourock – Kilcreggan service, a very substantial reduction on the current annual cost and £155,354 per annum less than the further price submitted by Clyde Marine Motoring Ltd of £330,304, the latter based upon offering two return sailings to Helensburgh, on three unspecified days during the Summer period only.

On the basis that SPT’s role is to maintain socially-necessary transport links, it was determined that the Clydelink tender bid met the core requirements of the service and was therefore recommended to the Operations Committee for award. The Committee also directed that the Sunday service should be maintained for the 2012 season, in the hope of encouraging greater uptake of it.

Whilst much has been made of a possible impact upon tourism to Helensburgh – a fact not borne out by the low passenger numbers – SPT is not charged with funding tourism initiatives, nor is it provided with any budget to do so. We are responsible only for maintaining socially-necessary transport links and we have done so in this case by maintaining the Gourock – Kilcreggan link for local residents and for the MoD workers at the Clyde naval bases. Throughout the tendering process, we have actively sought to ensure the long-term future of the ferry service in the context of the difficult economic circumstances currently faced by all public sector bodies.

Q.    What requirements must a ferry operator meet in the operation of an SPT contract?
A.    Any contractor must satisfy all appropriate statutory requirements. This will encompass vessel and crew, certificates/licences and records of inspection and maintenance. All contractors are required to disclose information evidencing legislative compliance when required to do so by SPT.

In addition, Clydelink has – at its own expense - appointed external advisers to assist in the fields of maritime training, vessel survey and compliance, safety and operational management, risk management and technical support.

Q.    What type of vessel will be used to operate the proposed contract and what are its design features?
A.    SPT specified a minimum 60-seat vessel, based upon survey data which indicated a maximum of 48 passengers at any one time. Clydelink has indicated that it will provide a new-build vessel which meets this requirement. It has indicated that the vessel will be suitable for the service and for any forthcoming shore side infrastructure changes, including landing stages, gangways and pontoons. Passenger facilities will include interior seating in a heated passenger cabin and will be of modern public transport quality.

The new vessel will also offer the following:

•    A wider, non-slip gangway permitting pushchairs and bicycles to be pushed on and off, rather than carried overhead when boarding and disembarking.
•    Thermostatically controlled heating to the passenger cabin.
•    Upper deck cycle rack.
•    Fare collection in the passenger cabin, rather than on deck.
•    With a reduced upper deck height, boarding and disembarkation will be carried out with the gangway at a shallower angle, permitting easier access for all.

There has been some misinformed comment on the purchase and ownership of the current vessel, MV Seabus. The Seabus was not funded or purchased by SPT and is entirely owned by Clyde Marine Motoring Ltd.

Q.    What arrangements are in place for vessel unserviceability or delivery delay at the commencement date of the contract?
A.    SPT requires that there should be provision to replace the vessel if it becomes unavailable for service for whatever reason. Clydelink has evidenced satisfactory arrangements in this regard, by having sourced a backup vessel of the required capacity and by having begun negotiations to put in place charter arrangements as a further secondary option.

Q.    What are the proposals in relation to use of the ‘Kilcreggan Steps’ at Gourock?
A.    After the Committee decision to award the contract, SPT was made aware that Caledonian Maritime Assets Ltd (CMAL), which manages the pier at Gourock, had indicated that, since it considered the Kilcreggan Steps – where the ferry currently berths – in a ‘tenuous’ condition, it was monitoring use and cautioned that it might be necessary to close them at short notice.

Although it would appear that CMAL notified the incumbent operator, Clyde Marine Motoring Ltd, of this in December 2011, no notification was given to SPT, either by CMAL or Clyde Marine.

This is clearly outwith the control of either SPT or Clydelink, and both have since engaged in discussions with CMAL to identify a solution. During these discussions, CMAL indicated that it was carrying out an engineering report on the condition of the Steps and, dependant upon the results of that investigation, it might be necessary to close them for the approximately 12 months required to carry out the remedial work.

It was suggested that a workable solution might be to put in place temporary arrangements which would see the ferry docking at a point some 200m from the current location, using a pontoon supplied by SPT.
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Q.    What financial standing checks are carried out on a prospective new contractor?
A.    SPT undertakes financial assessments of all contractors prior to the award of contracts.  Information used to undertake such assessments include but are not limited to Dun & Bradstreet credit reports and review of the most up to date available set of financial statements.  If other information becomes available, e.g. public notices etc, these are also considered.


In the instance of the award of contract for the Gourock – Kilcreggan ferry an updated credit report plus the draft financial statements up to 31 December 2011 were reviewed.  Neither highlighted any cause for concern.  A public notice relating to a recent HMRC action was also investigated and HMRC advised that the matter had been resolved.  This approach is standard practice.  For information, a review of other tenderers credit reports was also undertaken.

Q.    Why was the reference to DDA removed from the contract specification?
A.    The Disability Discrimination Act 1995 (DDA) was replaced by the Equality Act 2010.  Neither piece of legislation applies to ferries and the reference was removed for accuracy.  However, the tender pack was clear in that we require an accessible vessel although a short term alternative solution may be acceptable.

Whilst our Conditions of Contract require the vessel to be licensed, equipped, insured and maintained as required by statute there is currently no, nor is there any proposed, legislation relating to the type of ferry or the characteristics of the Gourock – Kilcreggan crossing regarding either the current vessel contract or any new vessel contract which specifies ‘accessibility’, DDA compliance or otherwise.

As previously noted, whilst the current vessel has features which promote accessibility, the new operator has confirmed that their vessel will have further enhancements which specifically address these concerns:

•    Wider, non-slip gangway permitting pushchairs and bicycles to be pushed on and off, rather than carried overhead when boarding and disembarking. Easier access for the visually impaired and infirm. Approximately 50% wider than existing gangway.
•    Lower main deck providing more direct access for the less able bodied should pontoons be installed in the future.
•    Thermostatically controlled heating to the passenger cabin, rather than on/off heating.
•    Upper deck bicycle storage.
•    Passenger fares will be collected on the passenger deck, rather than out in the elements on the upper deck.
•    With a reduced upper deck height, boarding and disembarkation will be carried out with the gangway at a shallower angle, permitting easier access for all.

Q.    What can be done to address the disabled access issues of the Seabus?
A    It is recognised that the application of the accessibility requirements to the new ferry is appropriate.  However, the existing berthing arrangements at both Gourock and Kilcreggan are currently not compliant.  Caledonian Maritime Assets Limited (CMAL) is presently conducting a feasibility study into options to address these issues in the long term.  SPT is supporting CMAL in this project and the introduction of pontoon arrangements is being considered and the design of the new vessel is entirely complementary to this solution.


Q.    Concerns over seaworthiness/stability of new vessel in adverse weather conditions?
A.    The Seabus currently is and the new vessel will be certified to Merchant Shipping Notice 1699 (M) Class V meaning that both vessels, current and new, are designed to operate in exactly the same sea conditions.

Q.    Has the new contract been awarded?
A.    The award of the contract has already been made, and has been done so in strict accordance with EU Procurement regulations.  The contract award was agreed by SPT’s Operations Committee on 20 January 2012.  Thereafter the 15 day EU standstill period was observed and the award finally made, in line with the wishes of the Committee, on 10 February 2012.