Subject to ongoing negotiations Serco Denholm is positioned to take responsibility for most marine services throughout the Royal Navy's three main UK ports, Clyde, Devonport and Portsmouth, and in domestic and overseas waters.
Announcing the contract, Mr Reid said:
"The Future Provision of Marine Services (FPMS) PFI contract will pave the way for a major overhaul in how we support the Royal Navy and other defence customers.
"Subject to successful negotiations we expect to be able to sign a contract later this year, which will generate considerable savings to taxpayers.
"MOD will now begin detailed discussions with Serco Denholm on what will be provided under the 15 year contract, which includes harbour berthing and towage, refuelling of vessels, passenger transportation, and buoy and navigation maintenance."
The majority of marine services are currently delivered by Serco Denholm under three Ports' contracts placed in August 1996 (in-port services), and by RMAS (Royal Maritime Auxiliary Service) under MOD internal arrangements (out-of-port services).
Under Serco Denholm's proposals, the Royal Maritime Auxiliary Service (RMAS) workforce would transfer to the company under Transfer of Undertakings Protection of Employment (TUPE) regulations. Changes to the way the service will be provided under the new arrangements are expected to result in post reductions, but at this stage it is too early to determine exact numbers or be specific on how each location will be affected. An exception is HM Mooring Depot at Pembroke Dock in Wales, currently employing 38 MOD staff, which would be closed and disposed of under these proposals, with work transferring to other locations. Serco Denholm will fully engage with local agencies to support the provision of new investment and alternative uses for the site. The MOD will liaise with trade unions throughout the process and, where possible, job losses will be achieved through natural wastage and voluntary means.
FPMS was announced in 2002, to bring together both in-port and out-of-port services under a single arrangement. Subject to successful negotiations the contract is expected to be awarded this year with vesting day some three months after.
