Review | 2015 Welcome

elcome to our Annual that, for those who depend on them, everyone in the company is working ver the past year CalMac to successfully bid for the CHFS of a 35 year joint venture with a Review of 2015. I hope ferries are an essential part of day- hard towards winning it. has continued to review contract currently being tendered. private sector partner. it will give you a good to-day life. We have built meaningful its operations and has While much effort has been put into This is a significant expansion of Woverview of our activities However, we believe very connections with communities Ocommitted to introducing new preparing our bid, we have not lost our area of operations and a good over the past 12 months and strongly that our role goes beyond up and down the west coast of innovations to support the sight of the day-to-day services that indication of the ambitions we have demonstrate how we are working that of a ferry operator over many decades. services delivered to communities our communities rely on. for the whole group. with our local communities in The past year has seen us collect With our blend of innovation and up and down the west coast. We are acutely aware that also continues to play an integral remote mainland destinations yet more awards across a number experience forged over generations Whether this is through better although our core function is lifeline part of the group’s operations. and 24 islands to provide high of business areas, notably Best of working with the people we ticketing options or a better quality ferry services to numerous remote This review is designed to show quality lifeline ferry services. Ferry Company at the inaugural serve, there is no doubt in my of service and food available on destinations, our responsibilities are you that what we do amounts David MacBrayne Ltd is committed Independent Travel Awards. mind we are the best company to board, by putting the customer at much, much wider. We have a crucial to more than keeping isolated to providing and improving transport The year ahead is going to be one continue the job. the heart of what we do, our goal role to play in driving economic communities connected. David services to people in the areas we of the most important in the group’s is to create an experience that development on the islands that is MacBrayne is not just a ferry support in line with the aims of the recent history. The next Clyde and passengers will remember for the much more than simply transport. operator, we are part of the very ’s National Ferry Services (CHFS) right reasons. However, the David MacBrayne fabric of the communities we serve. Transport Strategy. We recognise contract is now out to tender and David McGibbon, Chairman, We are now moving forward group of companies is more than David MacBrayne Limited with a transformation programme CalMac. We have been successful that will create a modern in our recent bid to run Marchwood business platform, enabling us Military Port in Southampton as part Martin Dorchester, Chief Executive, David MacBrayne Limited SETTING THE RIGHT COURSE Delivering lifeline services to support communites across the west coast

We are now moving forward with a transformation programme that will create a modern business “ platform, enabling us to successfully bid for the CHFS contract currently being tendered” 2 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 3 Who we are avid MacBrayne Ltd is one retendered by the Scottish WHAT WE DO of the largest logistics OUR STRUCTURE Government with a decision being David MacBrayne, through HOW WE DO IT organisations in Scotland, Scottish Ministers made in May 2016. CalMac Ferries and Argyll Da multi award winning ferry This is an eight-year, £1 billion Ferries, delivers essential, commercial daily sailings company, a harbour operator and contract that is vital to the very future million turnover 93,000 lifeline services vital to the £172 vehicles carried 358 on average ship management specialist. existence of the company. well-being and survival of It is one of the biggest Over the past few months we the island and mainland headquartered companies in David MacBrayne Limited have been consulting with our communities we serve. ports and overall technical Scotland employing more than communities to get an idea of what employees 99.90% 1,450 51 harbours served reliability achieved 1,400 staff through three subsidiary they want their ferry service to look • We provide access to (28 managed by CalMac) companies: CalMac Ferries Ltd, like in the future. work, education, health and David MacBrayne emergency services Argyll Ferries Ltd and David CalMac Ferries Limited Argyll Ferries Limited CalMac is firmly embedded within overall punctuality MacBrayne HR Ltd. HR (UK) Limited • We help people maintain million passengers vessels 99.81% the communities that rely on its 4.9 33 achieved CalMac operates the UK’s largest services day in day out; we have a contact with family and friends ferry network with 130,000 individual deep connection with them. • We ensure supplies of fresh sailings a year, an average of 358 a Caledonian MacBrayne I hope after reading about our food, fuel and mail sailings from day. The routes – which range from Crewing (Guernsey) Ltd activities over the coming pages you • We transport goods and 1.1 million cars carried 100+ events supported 5-7 five minutes and the in will agree - we are the only option services for island businesses to seven hours the south, to the in the for providing a modern, innovative, • We support tourism by north – traverse some of Europe’s MISSION 2016 CHFS BID flexible and reliable ferry service that ensuring easy access and an annual sailings - 475 most breath-taking stretches of water fits the needs of our customers for enjoyable experience for the 130,000 164 years’ experience CalMac strives to be the UK’s avid MacBrayne currently each day in summer to provide lifeline services to remote the long term. large number of visitors that are mainland destinations and 24 islands. leading ferry and port operator, delivers the Clyde and vital to many island economies VISION safety at its core, easy to engage Hebrides Ferry Services But more than that we add with, forward looking, a great place to D(CHFS) contract. value - value for the Scottish Connecting communities, creating work and recognised as the operator This contract is now being Robbie Drummond, sustainable value for our customers, taxpayer and value for the of choice by the customers and CHFS Bid Director employees and shareholder. communities and businesses communities we serve. we serve.

CalMac is firmly embedded within the communities that rely on its “ services day in day out; we have a deep connection with them”

ALLCommunities, business ABOARD and the environment at our heart 4 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 5 Innovation and environmental protection

s a modern ferry operator innovation is at the core BETTER TICKETING Islanders on Cumbrae were of what we do. We are the first in the network to trial Acurrently going through a wide more convenient ticketing. ranging business transformation CalMac is developing a process that will radically smart ticketing system across improve the way we do business, all ports and vessels as taking our services to a whole part of the Scottish new level. Government’s integrated ticketing strategy. A DIFFERENT VIEW This means passengers will eventually be able to travel providing an e-ticketing As part of the company’s on-going capability significantly improving technology investment programme, on trains, buses and ferries on the same ticket. passenger convenience. CalMac relaunched www.calmac. “Passengers will be able are now available, including links As a stepping stone to co.uk with a bright new look. this, the company is currently to print off tickets at home or Designed to further improve the to island community websites and looking at a range of ticketing store them on their smart phone customer experience, the website blogs, helping visitors to get a feel for improvements to enhance bypassing the need to visit the is clean and fresh with new content their destination before arriving. the customers’ travelling port office on arrival. and destination features, including an The website can now detect and experience. “These tickets will simply be checked by a mobile reader interactive map. automatically scale for use on any This includes the ability device, from smart phones to tablets to amend and change as the passenger boards the The map can be tailored by the vessel. This will be a major step and desktops. tickets online user to show destinations, ports and along with forward in delivering customer- routes, and is designed to help island The website refresh is stage one focused ticketing,” said Head of visitors visualise the full scale of of an ambitious and wide-ranging Ticketing, Alan Hood. the network, allowing them to make technology investment that includes more informed choices. bringing free wi-fi to all ships and Comprehensive guides to all the ports throughout the network. areas and islands served by CalMac

CalMac’s major vessels. is at the forefront of ferry organised by conservation Crews were trained by ECO BENEFITS As well as cost savings, innovation. ESSENTIAL PARTNER charity ORCA. ORCA staff to spot the OF NEW FUEL SYSTEM predicted to deliver more than CO2 emissions will be cut “This state-of-the-art IN OCEANWATCH The data will help develop different types of whales and A cutting-edge fuel £450,000 in annual savings to by some 1,800 tonnes - the technology has the potential Specially trained CalMac understanding of the animals’ dolphins and to make notes monitoring system – a UK the taxpayer. The advanced equivalent to the annual to have a significant impact crews took part in the first distribution and movements of the species encountered. ferry first – is set to bring system uses fuel monitoring greenhouse gas emissions of on the fleet’s emissions, ever nationwide survey of around the British Isles. “We were expecting good significant cost and carbon sensors which are linked to 4,285,714 miles driven by an cutting its carbon footprint whales and dolphins. Given its commanding results in the west coast area reductions across CalMac’s touchscreen displays on board. average passenger car. in some of Scotland’s Around 50 marine presence in Hebridean waters from CalMac,” said ORCA’s fleet. Known as Project Ecoship, Minister for Transport and most striking coastlines mammals - as well as a lone and the number of routes it Community Wildlife Officer Conservative estimates the system is being rolled Islands, Derek Mackay MSP and sensitive marine basking shark - were sighted sails, CalMac was only too Anna Bunney. “And we show that the system is out initially across all 10 of said: “This shows CalMac environments.” during the nine-day survey happy to get involved. weren’t disappointed.”

6 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 7 Communities at our heart

eople are at the heart of what we do. Our experience Commercial Vehicles of working with our Observations Pcommunities over many years gives us a particular insight into 93,000 from the challenges and issues island Passengers Tourist life brings. Passengers may sound like Karen Blixen This local knowledge means we COMMUNITY when I say this, but here goes - I can respond flexibly and effectively have a cinema in Oban (a far cry 4.9m est.2m Ifrom a farm in Africa, I know). to meet the needs of our customers. I also work on the local newspaper, STUDY REVEALS CALMAC’S The Oban Times. Cars Coaches I sing in the best Gaelic choir in the TRUE ECONOMIC VALUE known world, Atomic Piseag. Independent economic think tank, My son and best friend live on an the Fraser of Allander Institute, LINKS VITAL island. 1.1m 11,000 has outlined for the first time the So I make more than 70 trips a year scale of CalMac’s contribution to on ferries. the Scottish economy. In terms of knowing about CalMac I The report examines the company’s The report highlights, in particular, CalMac enables 3,247 jobs in island include high value products such as suppose you could say I know a wee ferry and port operations in detail, CalMac’s extensive support for tourism and £53.4m worth of wages whisky and shellfish, both of which bit about it. finding that it supports a total turnover island and remote communities via in tourism. contribute significantly to total TO SUCCESS I think the real greatness of Part of the people and communities we serve of nearly £270 million in companies the essential lifeline and logistical Produced by Stewart Dunlop, Scottish exports. CalMac is the staff. From helping me across Scotland. services it delivers. research fellow at the Fraser of “In terms of imports, CalMac’s get onto ferries at the last minute, It also confirms that CalMac, one of It also details CalMac’s Allander Institute, the report said: activity covers the majority of to planning my journeys around the largest companies headquartered contribution to tourism on the islands “CalMac is clearly the key items sold by local retailers without the north, to giving exposure to the in Scotland, supports a total of and calculates the extent to which channel of support for commercial which, it would be difficult to work of the community-owned Oban 5,883 jobs in mainland and island its support for tourist activity creates activity on the islands it serves. maintain an acceptable quality of Phoenix Cinema. Not to mention communities across the country. economic growth. It estimates that “Items exported from the islands life on the islands.” the times that they have helped with information and directions. And have you tasted the macaroni cheese, CalMac Culture: Supporting the west coast arts scene chips and peas? My best story from this year kinda As well as its long standing Book and Music Festivals Daniel Gilliespie, organiser of sums up the way staff know their partnership with the highlight in between. the Tiree Music Festival, said: “The customers. I was on the way home of the Gaelic cultural calendar, CalMac Culture is the latest focus fresh and creative partnership from a superb holiday in . the Royal National Mòd, of this support, running both the working from the CalMac team I was on the famed Finlaggan and I CalMac is a keen supporter of Culture Screen film competition has seen CalMac Culture and had gone to the quite marvellous loos. cultural and arts events across for budding screenwriters and the CalMac Live Lounge become When I came out there was a the west coast. producers and the now well a prominent part of Tiree Music member of catering staff waiting for me. The company sponsors a established Culture Music Festival in the past three years. He had a bedroom key in his hand. varied programme across the initiative for up and coming young Not only has it helped develop At first I was taken aback, until he network over the course bands and soloists. and grow our festival, it has also said: ‘Louise would you mind taking of the year. From These competitions are all about exposed lots of other festivals this key back to Oban? One of our Hebcelt on Lewis, to nurturing local talent and promoting and islands to a new clientèle by farmers this morning took it away from the Bute Jazz Festival the islands as cultural venues in their adopting music and culture as the the Corran Hotel by mistake.” with the own right to a younger audience. promotional vehicle.” I obliged of course. There are networks of ferries - but the real networks are the staff who bring everything on the west coast together. CalMac is clearly the key channel Thank goodness for of support for commercial activity them. Louise Glen, “ on the islands it serves” Oban Times

8 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 9 Supporting business

ore than 50% of the fresh food and drink we serve on board is sourced Quality of onboard offerings Mlocally giving these often small businesses a platform to bring ‘Taste our Best’ approval showcase their products. Our timetables are tailored to help CalMac is the first ferry company menu is Scottish, offering the likes island business get goods to market to take VisitScotland’s ‘Taste of -landed Haddock, smoked when they need to, including laying Our Best’ seal of approval for the salmon from Argyll Smokery in on additional sailings for livestock quality of its onboard food. , along with burgers sourced DRAM GOOD WAY TO auctions. The accreditation sees the from meat from around Argyll. HELP WHISKY TOURISM Over many years we have CalMac has joined with Mariners’ restaurant on all CalMac spends £5.188 million “France is our biggest market also developed close strategic partners across the west 10 of the fleet’s larger with 62 local food suppliers followed by Spain and Italy. Without partnerships with VisitScotland coast to offer whisky lovers vessels join such annually. CalMac, reaching these markets and local tourism agencies - a chance to make more of illustrious company Malcolm with fresh produce would be Tourism Industry their distillery visits. as Michelin-starred Roughead, Chief impossible,” said Donald. Association, Argyll and the Isles The company sails to Martin Wishart in Executive of “Barratlantic has worked closely Strategic Tourism Partnership and many islands and Highland Edinburgh, in getting VisitScotland, said: with CalMac over the years. They Scottish Tourism Alliance - to help areas with distilleries and this recognition from the “It’s great to see are very flexible, they know our maximise visitor spend in our area. can now be combined with tourism body. CalMac going that business needs and help us get our the new West Coast Whisky CalMac prides itself extra mile to provide products where they need to be, KEEPING VITAL BUSINESS Pass, which offers a range on providing an enjoyable good quality food using when they need to be there.” CONNECTIONS OPEN of exclusive promotions and passenger experience – at the exceptional Scottish produce, and Thanks to the Barratlantic’s close Island businesses are heavily discounts. heart of which is a food, drink and we are delighted to be awarding working relationship with CalMac, reliant on CalMac for getting Maggie Maguire, CalMac’s retail environment rich in local the Taste Our Best accreditation to its seafood is on sale in Boulogne’s goods to market and are a priority UK Tourism Development provenance. so many restaurants on board the main fish market in northern France group when it comes to setting Manager, outlined the success More than 50% of the Mariners’ ferries.” less than 48 hours after it comes out timetables. of the new initiative at a ‘Taste of the ocean. “Jobs and livelihoods rely on us in for Tourism’ summit in Oban. “CalMac today is really focused ways that few other travel operators significant products to come from markets around Europe. “Whisky tourism is of on delivering what the customer need to think about. If we cannot the islands CalMac serves. The company operates three growing importance and with wants, and will bend over backwards deliver the service that businesses Donald MacLean has been articulated and five smaller our ferry routes covering three to ensure businesses on the island need we could be putting the very shipping seafood from Barra since refrigerated trucks shipping products of the five main producing have a service that suits their existence of fragile communities at 1974. His company, Barratlantic, off the island to market daily. More areas – Campbeltown, Islay needs,” added Donald. risk,” said Director of Operations, is now the biggest private sector than 80% of the company’s £6 and Highland – we are ideally Drew Collier. “Our role in facilitating employer on the island with 41 staff, million turnover heads for Europe. placed to help make visits as business in the areas we serve working sometimes round the clock, memorable as possible. cannot be underestimated.” to supply the best fresh shellfish to “Our Whisky Hopscotch Seafood is one of the most Trails open up some of our best known, but remotest, distilleries to whisky lovers through ferry travel and combining the whisky pass adds a new dimension to visitors’ experience, helping to Barratlantic has worked closely support one of the country’s with CalMac over the years. They most valuable industries.” are very flexible, they know our The West Coast Whisky “ Pass was singled out by BUSINESS SUPPORT business needs and help us get judges for its innovative approach recently when our products where they need to CalMac was crowned Best be, when they need to be there” Ferry Operator at The Independent Travel Awards.

KEY10 2015 Review | Caledonian MacBrayneTO ISLAND LIFE Caledonian MacBrayne | 2015 Review 11 Valuing our staff - caring for our customers PUTTING STAFF AND

CUSTOMERSalMac is one of the FIRST biggest employers Master Lauren FAIRNESS, EQUALITY in the area we serve, Wilkie takes charge AND OPPORTUNITY Cmeaning everyone knows on the bridge David MacBrayne became someone who works with us. the first transport group in As such an important part the country to sign up for of community life, we are the government’s Scottish committed to investing in the Business Pledge. skills of our people to help them The pledge reinforces the develop, while equipping them to company’s commitment to deliver the best possible service fairness, innovation, opportunity for our customers. and equality and involves In some of our smaller islands fulfilling a nine-point action plan. such as , CalMac accounts The Scottish Government’s for as many as 1 in 9 employees. Deputy First Minister, John We are also one of the main Swinney, congratulated the employers of apprentices, taking company on becoming the on 20 every year. The company first transport operator to take also runs a cadetship scheme the pledge. with at least 45 cadets in training Mr Swinney said: “I would like at any given time. to thank David MacBrayne for The payback for this investment making the Scottish Business Chairman, David in skills and training is industry Pledge and to welcome it to a McGibbon, Annabelle leading levels of staff retention. growing network of progressive, Ewing MSP and CEO The average length of sevice for forward-thinking businesses.” Martin Dorchester at the a David MacBrayne employee According to Chief launch of the Living Wage is 13 years leading to unrivalled Executive, Martin Dorchester, levels of expertise. Overall our the company’s unequivocal A LIVING WAGE FOR ALL companies including CalMac and Youth and Women’s Employment, Nominated in the Frontline employees bring more than commitment to no zero hour Argyll Ferries and any primary Annabelle Ewing MSP said. “I Employee of the Year category, the The David MacBrayne group of 20,000 years of experience to coveted quality assurance continual improvement, typified contracts, the living wage, contractors they use. congratulate CalMac on becoming entire crew was highly commended companies has become the first running our services. mark from the Contact Centre by its development and excellent industry leading investment in All employers will be expected the latest organisation to receive for its community efforts. ferry operator in the UK and the Association (CCA). use of social media and major skills and training, including more to comply with National Living Living Wage accreditation and hope In one of the winter’s worst storms first major transport company in In its report the CCA said the system changes which are under modern apprenticeships and Wage (NLW) legislation by 2020, that even more follow its example.” and seeking refuge in Tarbert, the ‘GLOBAL’ STANDARD Scotland to achieve Living Wage company’s contact centre “is a development.” building closer relationships with as announced by the Chancellor crew shared supplies with local people FOR CUSTOMER CARE accreditation. competent, well managed, highly The team handles more communities served, are what of the Exchequer in the recent and opened up the ship for people The prestigious Global The accreditation, made by the CREW EARNS PRAISE AT customer-focused operation.” than 300,000 calls per year sets David MacBrayne apart Westminster budget. But David whose electricity had been cut off. Standard Accreditation has Poverty Alliance on behalf of the TRANSPORT AWARDS “The centre makes a positive and manages social media from other ferry operators. MacBrayne has gone beyond As well as providing hot showers been awarded to CalMac’s Living Wage Foundation, underlines any basic statutory commitment Relief efforts by the crew of and cooked meals, they also contribution to the aims and and web-based customer “This pledge helps us set in customer operations staff and reinforces the company’s by signing up to the Living Wage MV Finlaggan on Harris were provided takeaway supplies for enquiries around ferry bookings, stone these commitments to for their helpfulness and objectives of a highly customer- commitment to its 1,400-strong staff Foundation’s higher rates. honoured at the Scottish villagers to deliver to islanders who both our employees and our professionalism. focused organisation, which amendments, claims and and covers all David MacBrayne Scottish Government Minister for Transport Awards. were unable to get to the ship. The team earned the much has embraced change and complaints. customers,” he said. 12 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 13 David MacBrayne: Much more than CalMac EXCELLENCE EXPANSI0N SET

WITHs part of David berth forUK the Royal Fleet Auxiliary inP0RT achieving greater success for the WIN IN TRAINING MacBrayne’s long support of the Royal Navy. port of Marchwood.” ARGYLL FERRIES Industry leading support term expansion plans, The joint venture was awarded a The contract win was welcomed Argyll Ferries provides Athe company recently bid 35-year concession to manage the by Scottish Government Minister a vital role in keeping ith a staff of more than successfully to run one of the military movements through the port for Transport and Islands, Derek communities connected. 1,400 to look after, David UK’s largest military ports. and develop trade to maximise the Mackay MSP: “This is an excellent It runs a passenger-only service MacBrayne HR plays Solent Gateway Limited, a potential for commercial activities. example of a Scottish company from Dunoon to . Wa crucial role at the heart of new joint venture between the Grimsby-based GBA provides with a strong public service ethos With 62 return sailings Monday the company for employment company and global logistics firm services to the automotive, shipping succeeding in a competitive to Saturday and 30 on a Sunday, it matters, recruitment, career GBA (Holdings), won a Ministry of and renewables industry, Managing marketplace. Winning a contract provides a crucial service in keeping opportunities and development, Defence contract to run Marchwood Director, Captain Sam Judah MBE, of this type is testament to the the Peninsula connected. delivery of courses, pay and Military Port, a 225-acre facility on said: “We are extremely pleased company’s expertise, reputation Gourock is a mere 35 minutes welfare. Southampton Water. to be working with our joint venture and hard work.” away by train from central The company has a diverse The port has been used for the partners David MacBrayne and we Solent Gateway Limited will making a train and ferry commute geography and finds itself at the movement of troops and equipment believe that our individual strengths start operating Marchwood from possible for hundreds of people daily. heart of some of Scotland’s most since 1943 and also serves as a will complement each other well in April 2016. remote areas - communities which it has supported with employment opportunities for decades, often employing generation after generation of the same family. What were once simply jobs have developed into careers, with excellent opportunities and prospects - particularly important in some of the network’s more fragile economies. Decent job opportunities for young people, particulary in isolated areas, are in short supply and David MacBrayne HR has developed renowned, industry accredited apprenticeships and cadetships. While this is often the vehicle David to allow young people to remain MacBrayne within the villages and towns where HR: Boosting they grew up, for those who wish to employment spread their wings it also opens up opportunties An excellent example of a Scottish company global careers with other seafaring across the operators. west coast with a strong public service ethos succeeding Marchwood Military Port. in a competitive marketplace” Expertise brings UK expansion. “ 14 2015 Review | Caledonian MacBrayne Caledonian MacBrayne | 2015 Review 15 Caledonian MacBrayne, a multi-award winning company