The future of ferry services linking Orkney and Shetland with mainland Scotland has moved a step closer after the Scottish Government formally launched the procurement process for the next Northern Isles Ferry Services contract.

The new agreement is expected to be worth around £850 million over ten years and will shape the operation of one of Scotland’s most important transport lifelines.

The contract will cover services between Aberdeen, Orkney and Shetland and is expected to include significant investment in new vessels during its lifetime.

Among the planned improvements are two new freight flex vessels for the Aberdeen to Kirkwall and Lerwick route, which are due to enter service by early 2029.

Additional passenger and freight vessels are also expected to be introduced during the term of the contract.

The procurement process begins with a prequalification stage before detailed tender documents are issued later this year.

The successful operator will take over responsibility for the service when the new contract begins on 30 June 2028.

The Northern Isles routes are regarded as essential links for island residents, businesses and visitors, providing vital connections for passengers, freight, healthcare travel and tourism.

The Scottish Government says the new contract will be shaped by feedback from communities, operational requirements and wider transport priorities.

Economy, Tourism and Transport Secretary Stephen Flynn said:

“The Northern Isles Ferry Services play a vital role for the communities of Orkney and Shetland, and the Scottish Government remains committed to delivering reliable and robust ferry links for those who depend on them.

“The publication of the contract notice marks the formal start of procurement for the next Northern Isles Ferry Services contract, inviting interest from potential operators.

“Progress has already been made to enhance the resilience and accessibility of these ferry services, with the introduction of new lie-flat accommodation, removal of mid and peak season fares for islanders, and contract award to build two freight-flex vessels for the Aberdeen to Kirkwall/Lerwick route, improving service efficiency and capacity for years to come.

“We will continue to take the views of island residents and businesses into account to ensure the contract reflects local priorities throughout its delivery.”

The announcement comes at a time when ferry services remain a major political and economic issue for island communities.

Reliable transport links are widely seen as critical to supporting local economies, retaining population and ensuring access to services across Scotland’s island regions.

With procurement now underway, attention will turn to who bids for the contract and how the next generation of Northern Isles ferry services will be delivered.