29 March, 2007

THE SCOTTISH Executive yesterday (Wednesday) announced the shortlist for the lift on - lift off (lo-lo) freight contract to the northern isles.

Transport minister Tavish Scott said that two companies, Shetland Line (1984) Ltd (part of the Streamline Shipping group), and Eimskip UK Ltd, have been invited to tender.

A competitive tender for lo-lo freight services was announced in July 2005 as part of the retendering of the Orkney and Shetland lifeline ferry service, which for the first time had a freight subsidy included.

Shetland Line presently provides a lo-lo cargo service to Lerwick and Kirkwall without any public support.

The minister said: "I recognise the need to secure these freight services as they are vital to the Orkney and Shetland economies. So this tender process will bring benefits to businesses throughout the northern isles allowing them to compete more efficiently and effectively.

"Securing a lo-lo freight service is part of the mix of freight services that the island economies need. Local people and businesses expect a quality service, and I am pleased there has been interest from the companies involved.

"The bids will be carefully evaluated and we hope to announce a preferred bidder around the summer. The new contract will start later in 2007."

The service requirement is for two round trips to Orkney and Shetland per week on the Aberdeen -Kirkwall - Lerwick route. Subsidy will be paid on each tonne carried.