Chinese shipyard to build freight vessels for Northern Isles

A Chinese shipyard has been named as the preferred bidder to build two new "freight flex" vessels serving Orkney and Shetland.

The ferries will replace ageing boats on the route and carry up to 200 passengers during peak periods.

Ferries agency Caledonian Maritime Assets Limited (CMAL) said it intended to award the contract to Guangzhou Shipyard International in China.

Operated by Serco NorthLink Ferries, the 140m long vessels will serve the Aberdeen to Kirkwall and Lerwick route, replacing the Helliar and Hildasay.

A CMAL spokesperson said the new freight flex vessels would be faster, with more capacity and space for up to 200 passengers in busy periods.

Three other shipyards were invited to tender for the £200m contract; two of them based in Turkey and also a joint bid from Stena UK and another Chinese yard.

CMAL, the Scottish government-owned ferries procurement body, owns a total of 37 ferries, five of them leased to Serco NorthLink Ferries for the Orkney and Shetland routes.

Kevin Hobbs, chief executive of CMAL said Guangzhou Shipyard International's bid demonstrated "a commitment to innovation and efficiency".

The agency has entered a 10-day "standstill period" before finalising the contract on 24 March.

Stuart Garrett, managing director at Serco NorthLink Ferries, said the project would be a "game changer" for the Northern Isles.

Ruth Henderson, chief executive of Seafood Shetland, said the procurement was a relief for the sector, which has struggled at times to export its produce.

"It gives resilience for the future", she said.

Transport Secretary Fiona Hyslop has welcomed the "important milestone" and said the new vessels would boost the reliability of ferry services in the Northern Isles.