Ferry services to the Scottish Islands will remain in public hands after the Scottish Government awarded a new £900m contract to operate the Clyde and Hebrides network to Caledonian MacBrayne.
CalMac, which currently operates the route, had been competing with privately owned Serco Caledonian Ferries Limited for the contract.
The new eight-year contract begins on October 1.
The tendering process for the contract caused disputes last year after the Scottish Government said EU rules meant it had to open the process to 'competitive bids'.
Read more: Unions in parliament demo over ferries future
Serco currently operates the NorthLink ferries to Orkney and Shetland.
The tendering process will now enter a stand-still period where unsuccessful bidders can challenge the decision. If there are no challenges, CalMac will sign the contract in 10 days.
Martin Dorchester, managing director of CalMac said: "We are proud to be given the opportunity to transform ferry passengers' experience across the west coast of Scotland and to work closely with our partners to connect towns, cities and communities like never before.
"Our successful bid demonstrates our ability to provide innovative service improvements and value for money for customers.
"Drawing on our experience in the UK ferry market where we have won a number of awards, our bid delivers industry-leading customer care and high standards of reliability."
CalMac currently operates the routes between the west coast mainland and the Hebrides, and between islands.
Its contract bid makes almost 350 commitments to improve the service, including investments in vessel and port improvements, increasing traffic, providing more opportunities for local employment, and maintaining all existing routes and services as they are now.
Transport union RMT was among those who campaigned for the contract to be kept in public ownership.
CalMac has also committed to retaining the CalMac pension scheme and a policy of no compulsory redundancies.
Nicola Sturgeon congratulated CalMac on winning the new contract.
Congratulations to @CalMacFerries, the newly announced preferred bidder for the Clyde & Hebrides ferry services. https://t.co/O38Ry5lB3G
— Nicola Sturgeon (@NicolaSturgeon) May 19, 2016
The First Minister said: "I'm very pleased to announce CalMac Ferries Ltd as our preferred bidder for the next Clyde and Hebrides Ferry Services contract.
"CalMac have a long and proud tradition of running the Clyde and Hebrides routes, and the company is woven into the fabric of the communities they serve.
"Their tender offers a good deal for those communities served by these vital transport links and ensures that we can maximise the opportunities to support and nurture our island economies.
"CalMac will better manage demand to drive an increase in traffic, as well as make the ferry services more attractive with the introduction of smart ticketing on key routes.
"The Scottish Government has made a clear commitment to our ferry services, investing a record £1 billion in port infrastructure, vessels and services since 2007.
"Scottish Ministers will retain control of all of important issues, such as fares and timetables, through the public service contract. Vessels and port infrastructure will also remain publicly owned as they are now.
"This new contract looks to make further improvements our ferry services, and I look forward to CalMac starting the new contract later this year."
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