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£1billion ferry decision to be made between Cal Mac and Serco Caledonian

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The £1bn battle for Scotland’s largest network of ferry routes is expected to be decided within weeks.

Decision day has drawn closer for the choice of which company will run the State-owned Clyde and Hebridean Islands ferry services with the two competitors now allowed to lodge their final bids, which must be submitted by early next month.

The battle is between current operator, CalMac Ferries, and the rival bidder, Serco Caledonian Ferries, who unions fear would damage the services.

They were the only companies which applied to bid for the contract, despite the Scottish Government extending the usual six-year deal to eight years.

This week the contract notice was submitted to the Official Journal of the European Union and the two rivals have until March 7 to tender their final bids, with a decision on which operator will run the service set for announcement by the end of May.

The eight year contract will commence from October 1.

Serco also runs the Caledonian sleeper rail service between London and Inverness and Fort William and the NorthLink ferries that link Orkney, Shetland and the Scottish mainland.

However CalMac chief executive Martin Dorchester outlined his optimistism that it would hang on to the services in a Christmas message to customers.

Mr Dorchester said: “A huge amount of work has gone into this and I am confident that, as an internationally recognised, multi award-winning ferry operator, we will be the clear winner.

“We know we don’t always get it right but one thing I absolutely can assure you of is that we always try to get it right, and when we don’t we will always try harder.”