Ferries - Challenges and opportunities

This section focuses on the CHFS and NIFS networks; the ferry services which Transport Scotland, on behalf of Scottish Ministers, is responsible for. The implementation of the Ferries Plan, published in 2012, has seen significant achievements in ferry services including:

  • More routes. Over the period of the Ferries Plan we have introduced two new routes, Ardrossan – Campbeltown and Mallaig – Lochboisdale, as well as bringing two routes Kerrera – Gallanach and Gourock – Kilcreggan under the responsibility of Scottish Government.
  • More services. Service frequencies, particularly in summer, have increased to a number of islands including Arran, Islay, Mull, Skye (Mallaig-Armadale), Coll, Tiree, Colonsay and the Uists.
  • Lower fares. Following a series of pilots, the roll out of Road Equivalent Tariff (RET) on the CHFS network was completed in 2015. It is estimated that the introduction of RET resulted in the average fare paid per passenger and car dropping by 34% and 40% respectively. Additionally following a 20% reduction in 2018 for all passengers and car fares on the NIFS routes between Aberdeen-Kirkwall-Lerwick, islanders have also benefited from a 20% reduction in cabin fares along with the fares freeze for islander fares in place on these routes since 2020. All ferry fares for CHFS and NIFS were frozen for one year in 2023.
  • More people travelling. Prior to the Covid-19 pandemic, passenger numbers travelling on CHFS and NIFS networks increased by 16% and 23% respectively, compared to 2013. As for other modes of transport the pandemic also had an impact on ferry travel. The number of passengers travelling on the CHFS network dropped significantly with the pandemic. By 2022, numbers were almost at the 2013 level but with numbers increasing since. The NIFS network recovered earlier than CHFS with 2022 figures showing an increase of 20% compared to 2013.

However, some challenges have also arisen:

  • Higher operating cost. Annual operating costs on CHFS and NIFS has increased by 75% and 46% respectively, with the corresponding increases in farebox revenue being 18% on CHFS and 43% on NIFS. The annual deficit between CHFS and NIFS operational costs and income from ferry fares has almost doubled over the last 10 years – this deficit has been met by increasing Government grant payments.
  • More people taking their cars on ferries. In the last year before the Covid-19 pandemic there was almost a 40% increase in car carryings since 2013 for both CHFS and NIFS. Although some of the change on CHFS may be due to the reclassification of some commercial vehicles to cars with the introduction of RET (6m rule). By 2022 car carryings on CHFS and NIFS increased by 33% and 47% respectively compared to 2013.
  • Shortages of vehicle space on some key routes, meaning people cannot travel by ferry with their car at short notice. Routes such as Ardrossan-Brodick, Kennacraig-Islay, Oban-Craignure, Mallaig-Armadale and Ullapool-Stornoway are often highlighted by ferry-dependent communities and key stakeholders as experiencing under-provision of vehicle deck capacity at peak times. Other popular day-trip routes such as Largs-Cumbrae are reported as experiencing demand spikes. Similar constraints on cabin spaces are reported by NIFS stakeholders, particularly when travelling to and from Shetland.
  • A lack of spare vessels to cover for breakdowns. The CHFS major vessel fleet (the 10 larger vessels generally deployed on longer routes to larger islands) has been fully deployed since 2016 affecting resilience across the network. NIFS fleet is also fully deployed at peak times.
  • An increase in cancellations and delays on the CHFS network. This has been linked to worsening weather and an overstretched fleet. On CHFS actual reliability (rather than contractual reliability which excludes factors outside operator control, such as weather) has fallen from 97% in 2012/13 to 93% in 2021/22. NIFS actual reliability was 92% in 2012/13 but has remained above 96% since. Weather accounts for the majority of cancellations reported by the operators. On CHFS in 2021/22, 1.2% of services were cancelled because of mechanical issues and 3.2% due to weather. For 2021/22 on NIFS no services were cancelled due to mechanical issues and 2.9% were cancelled due to weather.