First challenge to CalMac in 40 years

Published on Tuesday 5 January 2010 21:15

A FERRY war was declared yesterday on services to the holiday island of Arran.

Private operator Western Ferries announced it will seek to undercut fares on the monopoly sailings currently run by state-owned rival Caledonian MacBrayne.

In its first major challenge to CalMac for nearly 40 years, the commercial firm said it believed it could offer cheaper, better and more frequent services than its subsidised competitor.

Gordon Ross, Western's managing director, told The Scotsman he expected a warm welcome for a new service mirroring CalMac's from Ardrossan in Ayrshire to Brodick on Arran's eastern shore.

Ross said: "There is a very strong view in Arran that the current service falls well short of the expectations of residents."

Western and CalMac compete on just one route, across the Firth of Clyde from Gourock to Dunoon, but the private firm has made no secret of its wish to muscle in on CalMac's substantial route network.

Mr Ross, however, admits his firm won't be able to start operations until 2012 at the earliest. "We are totally committed to this project. This is sincere and is in no way posturing," he said.

Western still has to commission and build purpose-built ships for the crossing, probably classic ro-ros carrying about 400 passengers and 60-70 cars. CalMac currently operates a single ferry on the route with room for up to 1,000 passengers.

Traffic on the existing CalMac service is thought to have risen slightly last year, although official figures are still not available. The route carried about 750,000 in 2007 and 707,000 in 2008.

Community leaders on Arran want to see a marked increase in capacity on ferries to the mainland.

There are currently just five return 55-minute sailings a day on the route and motorists are often only able to board by booking in advance. A five-day return for a car and driver currently costs 54.70. Local business leaders are desperate to see ferries run both more frequently and later at night. The last ferry off Arran is currently at 7:20pm, meaning many day-trippers, for example, have their evening meal on the mainland.

CalMac, which effectively operates all of Scotland's domestic ferry routes to the Clyde, Hebrides and, through a sister company, the Northern Isles, said it would be inappropriate to comment on Western's plans. The state operator has a contract to provide subsidised services to Arran until 2013.

It is understood that CalMac, under tough European anti-monopoly rules, would not be allowed to use subsidies to slash fares or boost frequencies on its Arran services to see off competition from Western.

Scottish ferry expert Professor Alf Baird of Napier University said he believed a more regular service could boost demand for the route by 30 per cent. He said: "Subsidy is not necessary on the Arran route, provided it is served with the right tonnage and operating arrangements, in my view. It is obvious Gordon Ross and Western Ferries thinks the same way. However, I don't think the best solution is necessarily to have two operators. Neither is competition likely to be sustainable in the long run."

The Scottish Government said it was currently reviewing all of Scotland's ferry services.