MV Alfred project costs: FOI release

Information requested

1. The actual or projected total cost for the full 23-month period that the MV Alfred will have been chartered when the current extension ends in March 2025.

2. Any additional costs the Scottish Government/its agencies are liable for as part of the charter agreement once the charter period ends.

3. Has the Scottish Government/its agencies ever inquired about purchasing the MV Alfred? If so when?.

4. Was any offer made to Pentland Ferries to buy the MV Alfred, potentially reducing long term costs associated with its extended charter.

Response

1. The charter agreements of the MV Alfred from Pentland Ferries, vessel owner, for use on Clyde and Hebrides Ferry Service contract (CHFS) have all been undertaken by the operator, CalMac Ferries Ltd. The Scottish Government has provided funding to CalMac Ferries Ltd to enable the initial charter, and 1st extension of the MV Alfred, and this was confirmed as £15.1m, in the Freedom of Information request published on 8 February 2024: Information relating to Scottish ferries costs and upgrades: EIR release - gov.scot (www.gov.scot)

2. Transport Scotland official anticipate that the funding for the 2nd extension will incur the same cost as the 1st extension. This includes the charter of the vessel but also variable elements around fuel, harbour dues and other costs that are dependent on the actual deployment of the vessel. It is also worth noting, the time on charter will be adjusted accordingly, to account for any period the vessel is out of service, and therefore not available.

3. With regards to whether Scottish Government enquired about purchasing the vessel, or if any offer was made to Pentland ferries to buy the MV Alfred. No offer was ever made from Scottish Government to purchase the vessel and likewise, the Scottish Government have not entered into, or signed, any agreement with Pentland Ferries. I would also clarify that Pentland Ferries have never offered the MV Alfred to Scottish Government for purchase.

4. Finally, this year has not been without its challenges on the network, with two key vessel out of service for extended periods. CalMac negotiated the charter of the MV Alfred from Pentland Ferries, and the primary intention was for her to provide resilience cover where required. This has been particularly beneficial for the Arran service. The charter has been extended until at least February next year when new tonnage should be delivered.

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