P&O Scottish Ferries ran the lifeline services to Orkney and Shetland for the last time on Monday.

The company's link with the area stretches back more than 30 years.

NorthLink won the lifeline service contract

However, it lost the contract - which carries a public subsidy of more than �11m - to NorthLink at the end of a tendering process in 2000.

The new operator - which was formed as a joint venture between Caledonian MacBrayne and the Royal Bank of Scotland - took over the service on Tuesday.

It now faces major competition for freight business on the routes linking the islands with the Scottish mainland.

NorthLink is promising cheaper fares and faster journey times on its three brand new ships, which have cost the company more than �100m.

But the promise of a new dawn has been dogged by problems.

Stiff competition

A new pier at Scrabster, which handles sailings to and from Orkney, will not be ready in time.

Orcadians are disappointed that they will have to travel across the Pentland Firth in a second hand vessel until the new pier is ready.

NorthLink also faces stiff competition from two rival freight operators.

I am proud that P&O have most of the time produced a very very good service to the islands

Terry Cairns P&O Scottish Ferries

It has been predicted that this could cost the company millions of pounds in lost business.

However, the new operator says it has already received advance bookings worth more than �1.5m.

Meanwhile, P&O's Terry Cairns admitted he was sad to see the end of an era as its final ferries sailed on Monday.

"I am leaving many friends here in Orkney," he told BBC Scotland.

"But I am proud that P&O have most of the time produced a very very good service to the islands.

"That is something that NorthLink will have to earn rather than just live up to our service."