CALMAC has won a £900 million contract to operate the Clyde and Hebrides Ferry Services (CHFS) network.

The tender for the next contract, which was awarded by the Scottish Government, is expected to last eight years from October 1 2016.

CalMac had been competing with private firm Serco Caledonian Ferries Limited to win the contract for the services.

The company's bid makes almost 350 commitments to improve the service, aiming to help drive economic growth, improve customer service and make sure the company delivers value for money.

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.

“The detail of our bid is confidential until the formal procurement process is concluded, however among the things that people can look forward to seeing are more opportunities for local employment; a refreshed on-board retail offering; investment in on-board facilities; closer, more responsive working with communities and an innovative approach to vessel maintenance to minimise disruption to services especially during the winter refit period.

“Our commitment to safety, support for local economies and businesses and protecting the very special environment in which we operate will not change.”

Mr Dorchester said that he wished to thank “the many people across our network and further afield for their support during this testing time for everyone associated with CalMac and especially our staff ashore and at sea, whose efforts over the last nine years have been acknowledged and rewarded with this contract”.

He added: “Now the hard work begins in delivering this contract during challenging economic times.”

David McGibbon, Chairman of CalMac, said: “This is great news for the staff, the company and the communities we support up and down the west coast of Scotland.

“A huge amount of time and effort has gone into understanding the aspirations of these communities for these vital services and preparing a bid which reflect these and our own ambitions.

“I am delighted to see this hard work has been rewarded with this prestigious contract.”

First Minister Nicola Sturgeon said that she was “very pleased” to announce CalMac Ferries Ltd as the preferred bidder for the next Clyde and Hebrides Ferry Services contract.

She added: “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.”