Annex A
FoI/19/00491 – Documents
Request:– “correspondence relating to the MV Clipper Ranger from 25th September 2018 until 18th February 2019 including meetings, emails, letters and reports between Scottish Ministers, Transport Scotland, CMAL, CalMac Ferries Ltd, SercoNorthlink and Seatrucks.”
Time frame : 25th September 2018 until 18th February 2019 Received: 18 February 2019 Due: 18 March 2019
From: Garrett, Stuart (UK & Europe) [Redacted] Sent: 25 September 2018 12:25 To: TS official Subject: Clipper Ranger
Serco Business
[Redacted], I’m sure you are sighted on the latest position ref above, but just to ensure all relevant parties are sighted following text message rec’d yesterday evening at 2120hrs. Message was unsolicited and is captured below in its entirety as received from Alistair Eagles, same message may have been sent to others, I’m unsighted in that regard.
‘By Wednesday evening the Ranger will no longer be an option as we will have lifted our board approval on an external charter. Scotland has 2 days left if they want the ship …..this is it.’
[Redacted]I haven’t replied. If you felt it appropriate then I’m happy to do so. Regards, Stuart
Stuart Garrett Managing Director, NorthLink Ferries Serco UK & Europe [Redacted] www.serco.com
On 25 Sep 2018, at 18:15, TS officials wrote:
Alistair
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Thanks again for a final opportunity to intervene.
As I indicated in my earlier response, Scottish Ministers are not going to pursue the MV Clipper Ranger at this time.
Thanks again
[Redacted]
From: Alistair Eagles Sent: 26 September 2018 07:52 To: TS officials Cc: @cmassets.co.uk Subject: RE: Clipper Ranger
On a purely practical issue we had a couple of press enquiries yesterday about the Ranger from the usual suspects in Scotland. So far we have ignored but if they persist we may have to say something. In this event would you be OK with something relatively short and benign such as;
“Seatruck has discussed the potential sale of the Clipper Ranger but Transport Scotland are not going to pursue this option at this time”
Let me know your thoughts?
Best regards
Alistair
Alistair Eagles Seatruck Ferries Limited CEO North Quay, Port of Heysham Heysham Lancashire United Kingdom LA3 2UH www.seatruckferries.com
From: TS Official Sent: Monday, 1 October 2018 19:52 To: Minister for Energy, Connectivity and the Islands; Cc: Brannen R (Roy); Pacitti F (Frances);Cabinet Secretary for Transport, Infrastructure and Connectivity;TS Officials Subject: RE: Freelancer [Redacted] - Clipper Ranger - lines for clearance
Hi [Redacted]
[Redacted]
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A TS spokesman said:
“Capacity in peak periods is one of the challenges for our ferry services, particularly given the very welcome increase in passenger numbers which has followed the successful introduction of Road Equivalent Tariff.
“Work is also already underway to appraise, and subsequently to deliver on, further improvements to the ferry services to the Western Isles, including the important Ullapool-Stornoway route.
“Over £1.2 billion has been invested in ferry services across the Clyde and Hebrides since 2007, including the MV Loch Seaforth and harbour upgrades at Stornoway and Ullapool. We are continuing to invest in new vessels and ferry infrastructure to renew the fleet, with the second vessel being built at Fergusons going into the Western isles Fleet. We also continue look to seek suitable second hand vessels which could supplement the fleet.”
Background info:
- Ministers gave serious consideration to the acquisition of the MV Clipper Ranger, but the limitations on her deployment meant that she would have made little contribution to our priority of wider network resilience. The costs of having the vessel in the fleet year round were also prohibitive.
- CMAL also had discussions with Seatruck on the possibility of a short-term charter this summer, but the vessel was not available on this basis.
- Additional passenger and car capacity has been provided to the Stornoway-Ullapool service in the form of the deployment of the MV Loch Seaforth. Communities on Lewis and Harris will also benefit from the additional capacity on the services to the Western Isles when the second vessel currently under construction at Ferguson Marine Engineering on the Clyde
Sent with BlackBerry Work (www.blackberry.com)
From: [Redacted] Sent: 08 October 2018 11:55 To: Garrett, Stuart (UK & Europe) [Redacted] Cc: [Redacted]Subject: FW: MV CLIPPER RANGER ...... Serco
STUART /[Redacted]
We have now received the following firm offer from owners.
+++
Between:
THE Owners SEATRUCK AND
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Serco Ltd (the Charterers)
Serco House
16 Bartley Wood Business Park
Hook
Hants RG27 9UY
1. Account Serco Limited
2. MV CLIPPER RANGER as previously described all details about and WOG BUT OWNERS WILL REVERT WITH THE LATEST TIME CHARTER DESCRIPTION
3. Delivery Dropping last outward sea pilot BIRKENHEAD ATDNSHINC
4. Laycan 9 October 2018 .
5. Period : firm time charter period through to 8 November 2018 plus minus five days in chrts option . OWNERS WILL DO A LONGER PERIOD
6. Hire [Redacted]daily.
7. OWNERS BOARD APPROVAL HAS BEEN LIFTED
8. Trading Aberdeen to Orkney and Shetland Island OR West coast Scotland
9. Redelivery always in Owners option, APS either Heysham or Liverpool always arrival the pilot station.
[Redacted]
11. Bunkers. The vessel is expected to deliver Birkenhead
on the 9 th October 2018 with about ….? Mts of low sulphur fuel oil, and about….? Mts ultra low sulphur oil (gas oil) suitable for the North Sea.
The vessel to be delivered with sufficient bunkers for her positioning voyage on delivery , and to be redelivered with approximately the same quantities as on delivery.
Charterers will not purchase bunkers on delivery, but will replenish them so as to redeliver with about the same quantities. In the event of their being any discrepancies on bunker
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12. …… subject Sercos board approval to be lifted latest by noon Tuesday the 9 th October 2018
13. Apart from main terms finally agreed above, and also logical alterations, details of the contract to be as per the previous charter party dated 5 jULY 2012
[Redacted]
15. All details of this fixture to remain strictly private and confidential.
+++
Stop end offer
Note that a copy of this offer will be going to as well who will be substituti ng for me as from tmmrw.
Best regards
[Redacted]
From: Garrett, Stuart (UK & Europe) Sent: 08 October 2018 12:20 To: TS official Cc: TS official Subject: MV CLIPPER RANGER ...... Serco
[Redacted ]
[Redacted]
[Redacted]
[Redacted] I’m not sighted as to whether there was any thoughts to use the CR on West Coast at all but thought best to let you know as to option available.
Draft Charter Party Offer supplied in confidence.
Stuart
Stuart Garrett Managing Director, NorthLink Ferries Serco UK & Europe
[Redacted ]
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From: Allan A (Alasdair), MSP
Alasdair Allan MSP for Na h-Eileanan an Iar BPA airson nan Eilean Siar [email protected] 01851 700357 20 Kenneth Street, Stornoway, HS1 2DR
From: Wheelhouse P (Paul), MSP
Hi [Redacted] Can you advise me regarding the point that Clipper Ranger was used before as a second vessel. This was not something said (if my recollection is correct) when TS briefed myself & Cab Sec on the use of the Clipper Ranger. Thanks
[Redacted]
From: TS official Sent: 09 October 2018 15:31 To: TS official Cc: Pacitti F (Frances) @transport.gov.scot>; [Redacted] Subject: FW: MV clipper Ranger
[Redacted] Are you content with the lines below?
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I have also highlighted the direct question from the Minister in relation to the previous charter of a vessel on Stornoway to Ullapool and provided a suggested answer below.
[Redacted],
[Redacted]
Minister for Energy, Connectivity and the Islands Paul Wheelhouse MSP
T: 0300 244 4000 E: [email protected]
Councillor Uisdean Robertson Chair of Transportation and infrastructure Committee Comhairlie Nan Eilean Siar Sandwick Road Stornoway HS1 2BW
___ Our ref: 2018/0032524 22 October 2018
Thank you for your letter 20 September 2018 about providing additional ferry capacity on the Clyde and Hebrides ferry service network.
We met on 25 September 2018 and I was delighted that our meeting was so constructive. I do know that you met with my colleague Michael Matheson, the Cabinet Secretary for Transport, Infrastructure and Connectivity on 4 October when a number of the same matters were discussed. As both the Cabinet Secretary and I explained in our discussion with you we acknowledge that capacity in peak periods is one of the very challenges for our ferry services, particularly given the very welcome increase in passenger numbers which has followed the successful introduction of Road Equivalent Tariff.
Additional passenger and car capacity has been provided to the Stornoway-Ullapool service in the form of the deployment of the MV Loch Seaforth. Communities on Lewis and Harris will also benefit from the additional capacity on the services to the Western
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Isles when the second vessel currently under construction at Ferguson Marine Engineering on the Clyde is deployed on the Uig Triangle services.
Work is also already underway to appraise, and subsequently to deliver on, further improvements to the ferry services to the Western Isles, including the important Ullapool-Stornoway route.
Over £1.2 billion has been invested in ferry services across the Clyde and Hebrides since 2007, including the purchase of the MV Loch Seaforth and harbour upgrades at both Stornoway and Ullapool. We are continuing to invest in new vessels and ferry infrastructure.
We gave serious consideration of the acquisition of the MV Clipper Ranger and recognise that she would have brought additional capacity and resilience to the Stornoway-Ullapool services. However, the limitations on her deployment to this route alone on the Clyde and Hebrides network meant that she would have made little contribution to our priority of wider network resilience following the disruptions so far this year. The costs of having the vessel in the fleet year round were also prohibitive as the options we were given were purchase or a long-term charter only. A short-term charter for Stornoway-Ullapool in peak summer was not, regrettably, an option the vessel owners were willing to consider.
We also continue look to seek suitable second hand vessels which could supplement the fleet.
I trust this response is helpful.
PAUL WHEELHOUSE
From: Minister for Energy, Connectivity and the Islands Sent: 24 October 2018 12:36 To: Minister for Energy, Connectivity and the Islands
Thanks[Redacted].
Ferry colleagues… if there are any points / updates regarding ferries - clipper range in particular was one thing that Mr Wheelhouse has mentioned and what ports the clipper range can dock in - it would be useful to have sight of before the bid.
Thanks [Redacted]
[Redacted]| Private Secretary to Paul Wheelhouse MSP, Minister for Energy, Connectivity and the Islands The Scottish Government | Web: www.gov.scot
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[Redacted]| Email: [email protected]
From: TS official Sent: 24 October 2018 14:52 To: Minister for Energy, Connectivity and the Islands
[Redacted]
Latest lines on the Clipper Ranger below, which also include our general lines on ferries investment including the Outer Hebrides STAG. I’ve added the Minister’s commitment to attend the upcoming Uists Ferry Summit.
[Redacted] MV Clipper Ranger
Ministers gave serious consideration to the acquisition of the MV Clipper Ranger, but the limitations on her deployment meant that she would have made little contribution to our priority of wider network resilience. The costs of having the vessel in the fleet year round were also prohibitive.
The MV Clipper Ranger is a freight-only vessel and can only operate on the Stornoway-Ullapool route (on CHFS) and the Northern Isles routes.
CMAL also had discussions with Seatruck on the possibility of a short-term charter this summer, but the vessel was not available on this basis.
Ferry investment in the Outer Hebrides
[Redacted]
We are continuing to invest in new vessels and ferry infrastructure to renew the fleet, with the second vessel being built at Fergusons going to serve the Outer Hebrides (Uig – Tarbert/Lochmaddy). We also continue look to seek suitable second hand vessels which could supplement the fleet.”
Capacity in peak periods is one of the challenges for our ferry services, particularly given the very welcome increase in passenger numbers which has followed the successful introduction of Road Equivalent Tariff.
[Redacted]
I look forward to discussing these issues further at the Uists Ferry Summit next month.
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From: Alistair Eagles [Redacted] Sent: 19 November 2018 22:03 To: TS official Cc: Pacitti F (Frances) < @transport.gov.scot>; Kevin Hobbs < cmassets.co.uk> Subject: Clipper Ranger update
Good evening [Redacted]
I note from recent press reports and Parliamentary debate that the issue of ferry resilience is very much on the agenda once again. In particular I saw the comments a week ago from Paul Wheelhouse about leasing tonnage in where required.
For your guidance the Clipper Ranger (picture att) has recently completed a charter with Stena Line but is available open in the market at this time. Our preference is still a sale but a charter would also be considered. As you know the vessel is a sister vessel of the Hildasay & Helliar and previously traded on the Ullapool – Stornoway route.
[Redacted]
Obviously we have had the conversation before and I realise that there may still be budgetary constraints. That said if you want to revisit the numbers we are happy to provide some updated figures?
The situation may change and her availability may be different in the near future. I just wanted to make you fully aware that the potential is still there if anything has changed at your end.
Obviously you have already inspected the vessel several months ago, but if you need to look once again at the vessel this can be arranged at short notice. She is alongside in Liverpool.
I look forward to your comments and trust that you are keeping well.
Best regards
Alistair
Alistair Eagles Seatruck Ferries Limited CEO North Quay, Port of Heysham Heysham Lancashire United Kingdom LA3 2UH www.seatruckferries.com [Redacted]
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From: TS official Sent: 20 November 2018 10:25 To: TS officials Cc: Pacitti F (Frances) < @transport.gov.scot> Subject: FW: Clipper Ranger update
All
To note below, a further e-mail from Alistair Eagles at Seatruck, [Redacted] the MV Clipper Ranger.
While as we have previously recognised, the MV Clipper Ranger would offer some advantage in terms of additional freight carrying capacity its main downsides are lack of operational flexibility and cost – both initial capital costs and on-going revenue costs into the future. At the moment my view remains, as per previous advice to Ministers, the balance, albeit it is close, still lies against purchasing this vessel. However, before I respond in those terms to Alistair I would welcome any views?
Thanks
[Redacted]
From: TS Offcials Sent: 20 November 2018 11:04 To: TS officials Cc: Pacitti F (Frances) < @transport.gov.scot; TS officials Subject: RE: Clipper Ranger update
Hi[Redacted] – just a brief one - given the portfolio budget settlement that is emerging on RDEL for 2019-20 and outlook for future years I’d have to concur.
Cheers
[Redacted] 20/11
From: TS Official Sent: 20 November 2018 11:21 To: TS officials Cc: Pacitti F (Frances) < @transport.gov.scot>; TS official Subject: RE: Clipper Ranger update
[Redacted]
No further points to add apart from Stuart Garrett’s strong belief that the third freighter would add resilience to NIFS services and handle [Redacted] during specific pinch points – as detailed in the mentioned business case received July 2018 – attached.
This does however come at a currently unrealistic cost as mention by yourself and[Redacted].
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[Redacted]
Thanks
[Redacted]
From: TS official Sent: 20 November 2018 12:28 To: TS officials Cc: Pacitti F (Frances) @transport.gov.scot>; TS Officials Subject: RE: Clipper Ranger update
[Redacted]
I think things have moved on sufficiently since last advice to warrant a reconsideration:
- [Redacted] - Previous advice focused on Stornoway-Ullapool – the NIFS freight issue and our decision to fund the MV Arrow came after that. [Redacted]
[Redacted] - Delays to 801/802 confirmed but CMAL advice is pessimistic about 802 contributing to Western Isles in Summer 2020 - Latest forecast demand analysis from CalMac received this week shows increased pressure on Stornoway-Ullapool and Uig-Tarbert/Lochmaddy - Outer Hebrides STAG will be published in early 2019 [Redacted]
2 thoughts:
- My earlier (very crude) analysis was that we could just about justify a short-term charter of the vessel for S-U over summer. Could we ask Seatruck specifically for that option – so even assuming they say no, we can report that to the community?
- The cost benefit analysis fell down on 2 things – (1) insufficient information on benefits, which the Serco report [Redacted] mentions should give us and (2) Serco’s operating costs which are [Redacted]
A quick bit of analytical work could bottom all this out in a couple of weeks – if we had the resource to dedicate to this, which we don’t.
[Redacted]
From: TS official Sent: 20 Nov 2018 13:48 To TS officials Cc: "Pacitti F (Frances)" < transport.gov.scot> Subject: RE: Clipper Ranger update
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[Redacted]
[Redacted]
[Redacted]
From:TS official Sent: 20 November 2018 15:53 To: TS officials Cc: Pacitti F (Frances) @transport.gov.scot> Subject: RE: Clipper Ranger update
From our engagement in NIFS, it is clear that there is growing expectation that additional freighter capacity is equired and that this will be provided by the ITT / contract.
There is no sympathy with the CHFS position, particularly with 2 new vessels in the pipeline. NiFS expect that any additional freight capacity will be allocated to them.
Of course the current budget / ITT does not include any provision for additional freight capacity which will be major bone of contention on NIFS.
The contract does allow for additional tonnage / sailings to be introduced - but this will require a vessel to be sourced, or additional sailings with current vessels to be introduced - all this will require additional finance to be approved.
Sent with BlackBerry Work (www.blackberry.com)
From: TS official Sent: 20 November 2018 16:20 To: TS officials Cc: Pacitti F (Frances) @transport.gov.scot> Subject: RE: Clipper Ranger update
[Redacted] At this afternoon’s NIFS Programme Board meeting we discussed freight capacity issues.
[Redacted] and [Redacted] indicated they had almost finished their report on freight requirements on NIFS. Given the re-emergence of the availability of the MV Clipper Ranger, [Redacted] would play that into the mix in their report.
[Redacted] is going to set up a meeting in the next week or so to allow us to discuss.
[Redacted] Thanks
[Redacted]
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From: TS official Sent: 20 November 2018 16:41To: TS officials Cc: Pacitti F (Frances) @transport.gov.scot> Subject: RE: Clipper Ranger update
Just to add – Mr Wheelhouse at the earlier discussion of Clipper Ranger with Mr Matheson and [Redacted] had mentioned the value of having additional freight capacity “in-house” in the Brexit context. TS Directors had discussion on Brexit today and the implications / risks of no deal and then a shorter discussion with Ministers (I was covering for Fran). It’s a point we can include in revamped advice, though I am not sure how we put a value on that in terms of benefit and it doesn’t address how we meet the additional RDEL cost.
Finally, I will ask PBA if they can accelerate the evaluation of the S-U freighter option which has (unsurprisingly) made it to the short-list of options in the Outer Hebrides STAG.
[Redacted]
From: Pacitti F (Frances) Sent: 20 November 2018 20:07 To: TS official Subject: RE: Clipper Ranger update
[Redacted]
I fully accept that there may be value in freight capacity post Brexit. But we need something more considered to justify revisiting this decision.
Fran
From:TS official Sent: 23 November 2018 13:26 To: Pacitti F (Frances) transport.gov.scot; TS Officials Subject: RE: Clipper Ranger update
Fran
A number of changes – see my earlier email in the thread below – but the key one for me is the decision to charter the Arrow and [Redacted]We have more information available now/soon than we had when we reached the earlier recommendation [Redacted] as the vessel is now available again. [Redacted]reported that this was put to Mr Wheelhouse at the STUC meeting this week and the Minister indicated this was worth looking at again.
Regards
[Redacted]
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MACCS case ( 2018/0044936) 19 December 2018 draft reply awaiting Minister’s approval and signature
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MACCS case ( 2018/0045130) 20 December 2018 Minister replied 29 January 2019
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From: TS official Sent: 10 January 2019 07:59 To: TS officials Subject: MV Clipper Ranger - Ministerial Briefing - Lines Importance: High
Extract from briefing pack relating to the Clipper Ranger
MV Clipper Ranger
We gave serious consideration to the acquisition of the MV Clipper Ranger, but the limitations on her deployment meant that she would have made little contribution to our priority of wider network resilience. The costs of having the vessel in the fleet year round were also prohibitive.
CMAL also had discussions with Seatruck on the possibility of a short-term charter last summer, but the vessel was not available on this basis.
Capacity in peak periods is one of the challenges for our ferry services, particularly given the very welcome increase in passenger numbers which has followed the successful introduction of Road Equivalent Tariff.
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Many Thanks, [Redacted] Contract Management Ferries Unit Aviation, Maritime, Freight and Canals [Redacted]
Transport Scotland, Area 2-D North, Victoria Quay, Edinburgh, EH6 6QQ
Transport Scotland, the national transport agency Còmhdhail Alba, buidheann nàiseanta na còmhdhail
From: TS official Sent: 18 January 2019 10:27 To: seatruck Cc: TS official, Kevin Hobbs @cmassets.co.uk) cmassets.co.uk> Subject: RE: Clipper Ranger update
Good morning Alistair
My apologies that we didn’t respond to your email last year regarding the MV Clipper Ranger. You will be aware that there is interest in the vessel in Lewis and the Northern Isles so we have kept this under review.
However, before I take consideration any further I would welcome a couple of updates from you:
1. Is the vessel still available for sale (or long-term charter) as per your email below and your previous exchanges with Kevin Hobbs? 2. Could she be available for a short-term time charter to CalMac for the coming peak summer (2-3 months)?
Best regards
[Redacted]
MACCS case 2019/0002164 21 January 2019 Ministerial reply still to be issued.
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MACCS case 2019/0002586 Reply awaiting the Minister’s approval.
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From: TS official Sent: 24 January 2019 15:34 To: Garrett, Stuart (UK & Europe) [Redacted] Subject: RE: Clipper Ranger - market latest
Thanks Stuart. Can you divulge organisation seeking visit?
[Redacted] Contract Management Ferries Unit Aviation, Maritime, Freight and Canals [Redacted]
From: Garrett, Stuart (UK & Europe) [Redacted] Sent: 24 January 2019 15:39 To: TS officials Subject: RE: Clipper Ranger - market latest
Serco Business
[Redacted] [Redacted]it’s Seatruck who are asking on the basis that neither Ranger nor Arrow are operating commercially currently, i.e both tied up. So they have approached us as to getting a round trip on either Helliar or Hildasay in operation.
[Out of Scope]
[Out of Scope]
Stuart Garrett Managing Director, NorthLink Ferries Serco UK & Europe
[Redacted] www.serco.com
From: Kevin Hobbs < @cmassets.co.uk> Sent: 29 January 2019 17:44 To: TS Official Cc: F (Frances) @transport.gov.scot>, TS Official Subject: Clipper Ranger Importance: High
[Redacted]
I spoke to Alistair on Friday (25/1) and again today hence the Email.
[Out of Scope]
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There is a spring/summer time charter proposal sitting with Seatruck for a trade from [Redacted] commencing April 2019 and completing by mid-September 2019.
There was an inspection by a potential purchaser mid-January in Liverpool and they are returning for a second viewing on 5th/6th February in Liverpool then progressing to Aberdeen to do a round trip on 7th/8th February on Helliar/Hildasay as they want to see how the vessel performs on a challenging route!
A purchase would be effective from September 2019 at expiry of the[Redacted].
[Redacted]
It looks as though the potential purchasers would most likely make an offer w/c 11th February which isn’t that far away either.
[Redacted]
Interestingly, Alistair advised that they have had the Clipper Ranger in “warm lay-up” at a cost of £[Redacted]per day including £[Redacted]day for the berth costs.
[Redacted]
Best Regards, Leis gach deagh dhùrachd,
Kevin Hobbs Chief Executive Officer Árd-oifigear
Caledonian Maritime Assets Limited | Stóras Mara Cailleannach Eta Municipal Buildings Fore St Port Glasgow PA14 5EQ
Fòn: 0044 (0)1475 749920 /0044 (0)7740 561237
From: TS official Sent: 29 January 2019 17:53 To: Kevin Hobbs @cmassets.co.uk> Cc: Pacitti F (Frances) < @transport.gov.scot>; TS official Subject: RE: Clipper Ranger
Kevin
Thanks for the prompt feedback.
I will pick up with TS Colleagues.
Thanks
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[Redacted]
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From: Alistair Eagles [Redacted]
Sent: 05 February 2019 21:33 To: TS official Cc: Kevin Hobbs < cmassets.co.uk> Subject: Clipper Ranger update
[Redacted]
[Out of Scope]
In terms of the Clipper Ranger I understand that there may be renewed interest in the vessel for use in Scotland, to be shared between CalMac and Northlink. As such thought I should quickly summarise the current position.
1. As you know our preference is to sell the vessel.
2. We have now agreed main terms to sell the Ranger to a[Redacted] 3. [Redacted]have already inspected the vessel prior to Christmas and are doing a final inspection visit tomorrow in Liverpool.
4. Following this inspection, the team of 4 will do a round trip to Shetland on the Helliar to experience an R series in action before heading home at the weekend.
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5. We are fully expecting this visit to go well and the buyers are now pushing to pay the deposit to secure the vessel. Ideally they are looking to pay the deposit by end next week.
6. The price is obviously P&C but I can confirm that we would have to deliver to [Redacted] which does add complexity and cost.
7. The [Redacted]requirement is for us to deliver the vessel to them sometime in the summer, the exact date is yet to be fully agreed.
8. [Redacted] so the vessel remains available prompt at this stage, pending the [Redacted]sale process.
9. At this stage if you wanted to progress a purchase of the Ranger then she is still freely available in the market until [Redacted] have paid their deposit.
10. So if we agreed a price and you could pay your deposit more quickly then you could have the vessel instead.
11. If TS purchased the vessel she could then start her service doing the summer season on Ullapool Stornoway, freeing up PAX space on the Loch Seaforth. She obviously traded successfully here before.
[Redacted]
[Redacted]
[Redacted]
Ultimately if there is interest things would need to move fairly quickly, during the rest of this week and next.
We can provide everything needed to accomplish a speedy transaction, if you did wish to progress in a positive fashion. You have already inspected the vessel but if a refresher was needed she in in Birkenhead.
[Redacted]
Given the time and energy that we have jointly spent on this over the past 2 years, I thought that this summary would be useful for you and TS at this critical point in time. Please let me know if you have any questions.
I look forward to your response.
Best regards
Alistair
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Alistair Eagles Seatruck Ferries Ltd CEO North Quay, Port of Heysham Heysham Lancashire United Kingdom LA3 2UH www.seatruckferries.com
[Redacted]
From: TS Official Sent: 06 February 2019 10:57 To: TS official Cc: TS Officials Subject: RE: capacity of freight vessels on Northern Isles routes - by 3pm if possible
[Redacted]
Have confirmed with SNF the below figures.
65 articulated vehicle spaces. 222 containers
Figures given are per freight vessel.
Figures revised slightly from previous given due to water tank on both vessels taking away some of the spaces.
Thanks [Redacted] Contract Management Ferries Unit Aviation, Maritime, Freight and Canals [Redacted]
Transport Scotland, Area 2D North, Victoria Quay, Edinburgh, EH6 6QQ
Transport Scotland, the national transport agency Còmhdhail Alba, buidheann nàiseanta na còmhdhail
*Our logo may not display properly on some computer systems
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From: TS Official Sent: 06 February 2019 12:34 To: TS Official Cc: TS Officials Subject: RE: capacity of freight vessels on Northern Isles routes - by 3pm if possible
[Redacted]
Roy also asked me for the latest on the price of the Clipper Ranger freight vessel. Seatruck have indicated that they would accept a price of £[Redacted]
[Redacted]
From: TS official Sent: 06 February 2019 15:13 To: TS officials Cc: Pacitti F (Frances) @transport.gov.scot> Subject: RE: Clipper Ranger update- draft note for 4pm today
[Redacted]
As discussed please find attached revised operating cost analysis from SNF for normal operations (after effort of bringing vessels up to scratch), which comes out at slightly lower c.£ [Redacted] figure. Have also attached original costs spreadsheet provided (3rd freighter vessel costs 31.07.2018) of c.£ [Redacted] for comparison.
Have also attached the MV Arrow analysis which details the marked uplift of freight shipped from Shetland during MV Arrow double deployment – even though overall freight on RoPax vessels remained largely static.
Also may be worth mentioning the MV Arrow double deployment cost £[Redacted] for double deployment 15 Sept to 5 Oct and 16 Oct to 4 Nov 2018.
Thanks and happy to discuss
[Redacted]
Contract Management Ferries Unit Aviation, Maritime, Freight and Canals
[Redacted]
Transport Scotland, Area 2D North, Victoria Quay, Edinburgh, EH6 6QQ
Transport Scotland, the national transport agency
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Còmhdhail Alba, buidheann nàiseanta na còmhdhail
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From: TS official Sent: Wednesday, 6 February 2019 15:53 To: TS officials Cc: Pacitti F (Frances) [email protected]> Subject: RE: Clipper Ranger update- draft note for 4pm today [Redacted]
[Redacted]
Looking back, SNF’s figures seem more consistent with the ones I included in my earlier submission. I know I had done further work on these based on SNF’s info but frustratingly in the time available I am not going to be able to recheck all of this so am going to refer to previous figures from the last submission and add the caveat that I think these may be underestimates.
[Redacted]
From: TS Official Sent: 06 February 2019 16:05 To: Minister for Energy, Connectivity and the Islands
[Redacted]
Please see attached 4 page update on the MV Clipper Ranger – this has been prompted by advice received this morning from her owners, Seatruck Ferries, that the vessel is still available, [Redacted]. I have attached the previous advice, below, for ease of reference.
We have extended our consideration to take in the freight needs of the Northern Isles. Whilst it is evident that the vessel would be very useful addition to both the NIFS and CHFS (Stornoway-Ullapool) services in terms of providing additional capacity, meeting forecast demand, adding resilience and satisfying user and community request, the estimated annual operating cost pressures are not affordable given RDEL Budget allocations and pressures; and, even then, the case in terms of costs and benefits, albeit not fully developed, does not currently stack up.
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As noted, we can provide a further update following recess including on the likely operating costs.
[Redacted]
Regards [Redacted]
Future freight services and Clipper Ranger update
Update
[Redacted]
[Redacted]
1. We have kept in contact with the owners, Seatruck Ferries, who indicated recently that the vessel was [Redacted]
2. Information received today is that [Redacted] the vessel is technically still on the market for sale.
3. Since previous advice was produced and discussed with Ministers, the following developments have taken place:
Pinch point pressures on NIFS services led in autumn 2018 to a number of high value seafood lorries not being able to travel. These pressures, [Redacted] to the chartering of the MV Arrow in autumn 2018;
Consultation undertaken with NIFS stakeholders to inform the tender specification for the next operating contract has revealed a strong belief that more freight capacity is needed and a strong expectation that this will be delivered during the period of the next NIFS contract;
Early outputs from the Outer Hebrides STAG (not public but seen by the Comhairle through their role in the reference group) endorse the analysis of our own Vessel Replacement and Deployment Plan that there are growing seasonal capacity constraints and unmet demand on Stornoway-Ullapool and other Outer Hebrides routes and that additional capacity will be required if traffic and associated economic growth is not to be constrained;
[Redacted]
Latest information indicates that delivery of the MV Glen Sannox is likely to slip again and we do not now expect the vessel to enter service in Summer 2019. Whilst not directly related to either NIFS or Stornoway-Ullapool, the delivery of the vessel would have given CalMac some added resilience.
Freight requirements – NIFS
1. Freight forms a significant part of NIFS traffic and accounts for over [Redacted]of Serco’s revenue (excluding subsidy). Freight is carried on the 3 ro-pax vessels supplemented by 2
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dedicated freight vessels. Freight carryings increased by [Redacted]from 2007 – 2017. Demand peaks in August to October, around the time of seasonal livestock shipments, particularly from Orkney to Aberdeen.
2. [Redacted]
3. The MV Arrow, a sister ship to the existing freighters and to the Clipper Ranger, was chartered for 2 periods, each of around 3 weeks, in Autumn 2018.[Redacted]
Clipper Ranger – Purchase costs
4. [Redacted], This could be funded from 2018-19 Budget allocation though it is not our preferred option – see below.
Operating costs
5. We have assumed that MV Clipper Ranger (a) would be owned or leased by CMAL and (b) that CMAL would then charter her to SNF who would then sub-charter her to CalMac for the 3 summer months service on Stornoway-Ullapool plus any scheduled relief cover. CMAL already charter 2 similar freight ships to SNF so the agreement would be administratively straightforward. Operating costs would therefore be a year’s additional subsidy to SNF and 3 months additional subsidy to CalMac through their respective contracts – with an offsetting of costs between the two to give a net annual cost to the Scotland Government.
6. Initial estimates set out in my previous submission were that the additional subsidy (RDEL) pressure from the purchase and deployment of the MV Clipper Ranger would be in the range of c. [Redacted]p.a. However we are looking further at these figures which could be an under-estimate.
7. [Redacted] These operating costs (RDEL) would present an in-year budget pressure in 2018-19 (part- year) and will ultimately require additional funding as part of Draft Budget 2019-20 and beyond as these costs will be recurring.
Financial issues
8. CDEL for vessel purchase could be available in 2018-19. There is no provision for this in CDEL or RDEL budgets 2019-20.
9. It is hard to see how additional RDEL could be identified in 2019-20, particularly as this would become an ongoing commitment (unlike MV Arrow charter which was intended to be a one-off).
[Redacted]
Presentational issues
10. Chartering or buying the Clipper Ranger would be welcomed in affected communities. [Redacted]
NIFS court case
[Redacted]
Assessment
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Northern Isles
11. It is difficult to conclude that there is currently a strong case for an additional freight vessel for NIFS that would provide a position cost-benefit analysis, though this would require more detailed work to confirm that initial conclusion, particularly in terms of economic and community benefit.
12. Forecasts indicate that unmet demand will become a growing issue on NIFS services and on Stornoway-Ullapool. We will consider options to address this.
13. Separately we are preparing advice on the [Redacted] In parallel CMAL are developing early proposals for long-term replacement freighters which could offer improved capacity, performance and/or economy.
[Redacted]
Stornoway-Ullapool
14. The case for a peak summer charter cannot be made in simple financial terms as the anticipated revenues would not cover the anticipated costs.
15. The case would therefore be two-fold:
Resilience: although of limited direct benefit to the wider CHFS network, introducing an additional vessel would give resilience to the important Stornoway-Ullapool route and some potential indirect benefits to CalMac in dealing with any major vessel breakdowns this summer;
Economic: the wider economic benefits of increased tourist numbers (directly in the local Lewis/Harris economy; indirectly in terms of increased tax revenues) would offset the cost of deploying the vessel. Further analysis would be needed to assess whether the benefits exceeded the costs.
Conclusion
16. We can provide a further update following recess.
[Redacted] Transport Scotland – Ferries 6 February 2019
______
______From: On Behalf Of Minister for Energy, Connectivity and the Islands Sent: 07 February 2019 11:49 To: TS Official Cc: Cabinet Secretary for Transport, Infrastructure and Connectivity
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Subject: RE: Ferries investment - secondhand vessels - MV Clipper Ranger - update 6 February 2019
Hi[Redacted] ,
Mr Wheelhouse has noted and said he is grateful for the note. He also commented that [Redacted] perhaps this (subject to resource issues) is a must-do to provide service flexibility.
He added in comparison with cost of Hulls 801 and 802 it is very modest and we could (also subject to resource issues)[ Redacted] Mr Wheelhouse is keen to get further advice but he thinks this would be a smart bit of business if we can rind resources.
Thanks, [Redacted] | Private Secretary to Paul Wheelhouse MSP, Minister for Energy, Connectivity and the Islands The Scottish Government | Web: www.gov.scot [Redacted] Email: [email protected]
From: Baxter M (Mike) (TRANS) [Redacted] Sent: 07 February 2019 11:56 To: [Redacted] Cc: Chief Executive Transport Scotland
Subject: RE: Ferries investment - secondhand vessels - MV Clipper Ranger - update 6 February 2019
[Redacted]
I would like to see any draft advice on this before it goes up please
Kind Regards
Mike Baxter Director – Finance and Corporate Services Transport Scotland 5th Floor Buchanan House 58 Port Dundas Road Glasgow G4 0HF [Redacted]
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From: TS official Sent: 11 February 2019 15:00 To: Alistair Eagles seatruckgroup.co.uk> Cc: Kevin Hobbs < cmassets.co.uk>; TS Official Subject: RE: Clipper Ranger update
Alistair
It was also good to catch up with you last week and thank you for following up with your email concerning the Clipper Ranger. I note that the [Redacted} We have passed the pertinent information in your update to Ministers.
I appreciate you keeping us up to date and would welcome being kept informed on [Redacted] and whether the timing of this would offer the opportunity for any short- term charters this summer to either CalMac or Serco.
Best regards [Redacted]
From: Alistair Eagles [Redacted] Sent: 11 February 2019 15:37 To: TS officials Cc @cmassets.co.uk; Subject: RE: Clipper Ranger update
[Redacted]
Many thanks for your email.
Just to be 100% clear can you confirm that there is no interest at this stage from TS or the Ministers to purchase the Clipper Ranger?
If there was interest we would need to progress things very quickly during the rest of this week. She is still available as we speak to purchase but [Redacted]
Many thanks, I just don’t want there to be any misunderstanding.
Best regards
Alistair
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