Caledonian MacBrayne Ferry Services www.calmac.co.uk 1 Christine Roberts HR Director, David MacBrayne HR Limited (UK) MEETING OF THE CPMR POLITICAL BUREAU Inverness, June 6, 2014 www.calmac.co.uk 2 Lifeline Ferry Operations www.calmac.co.uk History and evolution • Started in 1851 under the name of David Hutcheson & Co. • In 1973 Caledonian MacBrayne Ltd was formed by the merger of David MacBrayne and the Caledonian Steam Packet Company. Also came into public ownership. • In 2006 CalMac Ferries Ltd, was created to bid for the Clyde and Hebrides Ferry Services (CHFS) contract and Caledonian MacBrayne Ltd became Caledonian Maritime Assets Ltd (CMAL) in order to keep vessels and ports in public ownership. www.calmac.co.uk 4 Post 2006 • CalMac Ferries Ltd is an private Ltd. company with Scottish Government as sole shareholder • We are now solely a ferry operator delivering a Government contract. • All aspects of our services – fares, timetables, routes, ships – dictated by the CHFS contract • CFL now the UK’s largest ferry operator in terms of numbers of routes and vessels operated www.calmac.co.uk 5 CalMac in 2014 • Award-winning company • 31 ferries on 27 routes • 130,000 sailings per year • Technical Reliability over 99% • Punctuality over 99% • 1400 people www.calmac.co.uk 6 CalMac’s Business • 4.8m passengers • 1.1 m cars • 99,000 Commercial Vehicles • 11,000 coaches www.calmac.co.uk 7 CalMac Awards www.calmac.co.uk Where we operate www.calmac.co.uk 9 Vessels • Largest vessel is the MV Isle of Lewis, which can accommodate 970 passengers and 114 cars • Smallest vessel is the MV Eigg which takes 75 passengers and 5 cars • Newest vessels are MV Hallaig and MV Lochinvar – world’s first seagoing diesel/battery hybrids • MV Loch Seaforth due to enter service in September 2014 www.calmac.co.uk 10 www.calmac.co.uk 11 Working with remote communities CalMac is an integral part of the area it serves • A major employer: 1400 employees • A major procurer of local goods and services • A primary partner in many of the tourism & business development activities: Visit Scotland, AISTP • Its services are essential to carry virtually everything an island needs……. www.calmac.co.uk 12 For example…. • Cattle and sheep to market • Hay and animal feed • Grain for whisky and then the whisky off again • Giant wind turbines • Emergency Services • Medical supplies - blood and samples • Live shellfish, Live fish for fish farms • Fuel • Newspapers & mail • People to places they need to be • Anything else you can think of… www.calmac.co.uk 13 And often in challenging weather conditions…. www.calmac.co.uk 14 Supporting Tourism • Partnering with Visit Scotland – Homecoming advert – Ticketing in 84 Visit Scotland locations • International Tourism – Germany, Netherlands and Belgium – Canada and America (Visit Britain) www.calmac.co.uk 15 Homecoming 2014 www.calmac.co.uk 16 EU Policy Issues • Maritime Cabotage rules on contract duration – previously set at 6 years but now under review. Longer contracts needed to encourage investment • EU Emissions – West Coast not included in Emission Control Areas www.calmac.co.uk 17 North Sea and Baltic Sea SOx ECA www.calmac.co.uk 18 EU Emissions • Still need to reduce: West Coast Ferry Operations - Currently 0.1% Sulphur in Port, 1.5% sulphur at sea - Changing to 0.5% at sea in 2020 East Coast Ferry Operations - Currently 0.1% Sulphur in Port, 1.0% sulphur at sea - Changing to 0.1% at sea in 2015 • Tendency to focus on gas emissions but these cannot be viewed in isolation www.calmac.co.uk 19 Recycling Process/Scrapping SOx, NOx, PM, VOC, ODS, GHG, BC Toxic Antifouling Sewage Ballast Water Noise Bunkering Operations Cargo/Oil Spills Garbage Opportunity to pursue other options: • Liquefied Natural Gas (LNG) – Pure Gas or Dual Fuel (MGO) • Exhaust Gas Scrubbers • Hybrid (Diesel and Batteries) • Electric (Batteries only) • Methanol • Hydrogen Biggest challenge is putting supporting shore infrastructure in place www.calmac.co.uk 21 Other EU issues • Motorways of the Sea –have the potential to bring more freight directly into our area but difficult to say whether that would generate increased traffic for us. • Marco Polo – road haulage is only way to move goods around most of our network. Rail freight very limited and rail networks to ports focus on passengers www.calmac.co.uk 22 Challenges • Meeting ever-changing customer expectations • Demographic of crews due to industry- wide recruitment freeze in 1980s • Retaining trained crew - lured to the North Sea • Immense political sensitivity and scrutiny • Geopolitics www.calmac.co.uk 23 Questions? www.calmac.co.uk 24.