NorthLink Ferries contract extended for lifeline Northern Isles services

The Scottish Government has confirmed that NorthLink Ferries, operated by Serco, will continue to provide ferry links between the Scottish mainland and the Orkney and Shetland islands under a publicly subsidised contract valued at nearly a quarter of a billion pounds.

image: NorthLink Ferries

The Northern Isles Ferry Services contract, managed by Transport Scotland and currently scheduled to run until 30 June 2028, covers ferry operations connecting Aberdeen to the Northern Isles with regular sailings that also call at Kirkwall in Orkney.

Under the existing arrangements, Serco’s NorthLink operation is supported by public subsidy to ensure continuity of freight and passenger sailings that are vital for island communities’ access to services, employment and goods. Ferries on the route, including the vehicle and passenger ship MV Hrossey, carry both residents and freight on scheduled services between the mainland and the archipelagos.

The contract follows a competitive procurement process when Serco first secured the franchise in 2019, with the current deal providing hundreds of millions in revenue over its term and options for extension.

Transport Scotland has also sought community input on the design of the next contract cycle, holding consultations with island residents and stakeholders to shape future service requirements ahead of the current agreement’s expiry in 2028. For instance the contract includes measures to reduce peak season fares for island residents on Northern Isles sailings, reflecting efforts to balance subsidy with improved value for users.