CalMac's fleet may go private to help pay £600m for new ships

OWNERSHIP of Caledonian MacBrayne's ageing ferry fleet could be transferred to a private company to help pay for £600 million of new ships required over the next 12 years.

Transferring the 29 vessels from government-owned Caledonian Maritime Assets Limited (CMal) to a not-for-profit company could unlock commercial borrowing to fund their replacements. A Scottish Government consultation also includes options for harbours owned by CMal, which will require a further 180m of upgrading work.

The Scottish Government's Transport Scotland agency stressed there were no similar plans to restructure ferry operator CalMac, which ministers also own.

However, the consultation does seek views on whether the four busiest of CalMac's 25 west coast routes should each be put out to competitive tender separate from the rest of the network when its current six-year contract expires in 2013. They are Ardrossan to Brodick on Arran, Wemyss Bay to Rothesay on Bute, Oban to Craignure on Mull and Largs to Cumbrae.

CalMac's ferries, which average 20 years old, are currently funded by the Scottish Government, which lends money to CMal. However, the impending spending cuts will leave it struggling to find enough for the new ferries and harbours.

The three options include a "public interest company", a non-profit distributing organisation governed by members representing communities served by the ferries. This could be similar to Network Rail and Welsh Water, and have the power to raise private finance.

The other options are for CMal to lease ferries from private companies, or for an alternative non-profit distributing financing model, which could be similar to that planned for the Borders Railway.

CMal chief executive Guy Platten said of the funding challenge: "Given the severe financial challenges facing us, it is vital we investigate new and innovative ways of tackling these issues."

Conservative transport spokesman Jackson Carlaw said the private option should be considered.

He said:? "Scotland needs organisations fit for purpose and fit to compete, organisations which can borrow in the private market and are free from government constraints."

However, ferry expert Professor Donald Meek feared private funding could dry up and should not be relied on.

He said: "We need an absolute fail-safe position to provide security."