The Committee heard that Norwegian ferry contracts are for 8-10 years.iNet Zero, Energy and Transport Committee, Official Report, 21 February, 2023, Col 14 Pentland Ferries said their rebuild schedule for vessels was roughly every 10 yearsiNet Zero, Energy and Transport Committee, Official Report, 1 November 2022, Col 16 and Western Ferries suggested the length of the current tender was short in terms of allowing an operator to recoup investment in a vessel to operate the route.iNet Zero, Energy and Transport Committee, Official Report, 1 November 2022, Col 15
The Project Neptune report said the benefits of extending the contract length were--
It could better support capital investment by an operator;
It could encourage long term decision making; and
It would allow an operator to align with Transport Scotland and CMAL's "asset renewal strategy" which in term could lead to reduction of the age of the fleet.