A Scottish ferry company has lost a £12.7 ($18.1m) court case over the award of a lifeline contract to Serco.

Shetland Line has sued the Scottish government over the decision to hand northern isles services to its rival in 2012.

An Edinburgh court has now ruled that there was no breach of public contract regulations.

The six year deal is worth £243m.

Shetland Line claimed that the government had not been as clear as the law dictates in its specification for the freight side of the contract.

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