Local Authority Ferries - Orkney Ferry Replacement Task Force Meeting - 14 May 2025
Attendees
- Shona Robison MSP – Cabinet Secretary for Finance and Local Government
- Jim Fairlie MSP – Minister for Agriculture and Connectivity
- Cllr Heather Woodbridge – Leader of OIC
- Cllr Sandy Cowie – Depute Leader of OIC
- Oliver Reid - Chief Executive of OIC
- Gareth Waterson - Director of Enterprise & Sustainable Regeneration, OIC
- Official – SG Local Government Finance
- Official - TS Ferries Policy
- Official - TS Ferries Policy (note taker)
Welcome and introductions
Update from OIC
Business case
OIC’s business case is on target. Leadship Design LLP and Arch Henderson Infrastructure has been awarded the contract for detailed design work on vessels and ports for Phase 2 (Inner and South Isles and North Ronaldsay and Papa Westray) of the ferry replacement programme. Final phase 1 type vessel (existing port infrastructure) exemplar design for Outer North Isles is expected to be completed by Knud E Hansen around October 2025 and, the tender for 3 or 4 phase 1 vessels is expected to be ready to issue by December 2025. Phase 2 design work will continue until October 2026.
Fleet Resilience
A number of vessels need replacement parts that are no longer being manufactured. Swapping of vessels for refit and to cover services is becoming challenging, only just keeping routes fulfilled. OIC is looking to purchase a freight boat for additional resilience.
Third Aircraft Update
OIC is looking to use some of the one-off funding to purchase and operate a second-hand third aircraft. This will aid pax resilience and, provide extra inter island services. This should be running by the end of 2025/26 winter period.
Zevi Update
Zevi 1 is on route from Belfast, arriving by the end of May, with an aim to have it in the water soon after. The sea trials in Belfast have been successful. The larger Zevi vessel build has been started and the craft will be fitted out over the summer. Delivery is expected by December 2025. The Cabinet Secretary asked about timetabling/speed expectations. The smaller Zevi will service smaller isles Rousay-Egilsay-Wyre direct to Kirkwall and Shapinsay to Kirkwall, while the larger vessel will service a commuter loop round the outer North Isles. Zevi vessels are double the speed of current vessels.
Finance and next steps
Overall estimates for fleet replacement are still within the budget of £270m-£400m.
OIC noted thanks for the additional revenue provided by SG and that this would be publicly acknowledged.
OIC is seeking an uplift in ongoing revenue funding to £28.8 million for 2026-27, which would allow for ongoing operations and to support borrowing for new vessels. OIC would require this confirmation by September 2025 to allow phase 1 procurement to proceed as planned.
The Cabinet Secretary explained the wider context of the UK Government Spending Review, due in June 2025, and the Scottish Government’s draft budget in December 2025. She noted the Council’s need for certainty and will consider what can be done to provide that.
Under 22s concessionary fares had been very well received and also opened up opportunity for smaller isles to be visited by youths, thereby enhancing island sustainability.
AOCB
Media: joint statement to be issued in due course.
Date of next meeting
After summer recess, though the Cabinet Secretary suggested a Teams meeting before then if required, adding that there was a possibility of meeting in person in Orkney over the summer recess.