U.K. Ministry of Defense Awards $2bn Contract for Marine Services

The U.K. Ministry of Defense today signed a £1bn Private Finance Initiative (PFI) contract with Serco Denholm Marine Services Limited for the future provision of marine services (FPMS) over the next 15 years.

The contract covers an extensive range of services, including:
* provision of tugs and pilot boats to move the Royal Navy fleet in and out of port
* passenger and crew transfer to and from ships
* loading of dry and liquid stores and removal of waste from the ships
* protection of the environment in the event of oil or other spillages

Serco will manage, operate and maintain around 110 vessels used in both port and deep water operations. Over 30 new vessels will be introduced into service during the contract which covers the UK’s major ports at Portsmouth, Devonport, and the Clyde.

Baroness Taylor, Minister for Defense Equipment and Support said today:

“The Future Provision of Marine Services PFI contract will pave the way for a major overhaul in how we support the Royal Navy and other defense customers.

“The new single arrangement will be easier to manage than existing arrangements, and will provide the best long term value for money over its fifteen year lifespan.”

The majority of marine services have been delivered by Serco Denholm under three Ports’ Contracts since 1996, and by the Royal Maritime Auxiliary Service (RMAS).

The new arrangement with Serco Denholm Marine Services Limited will modernize marine services, and will result in a refreshed fleet of vessels capable of handling current and future warships and submarines at a greater level of efficiency.

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