Ferguson Marine: Why has ScotGov kept financing the firm?

The Herald Scotland

5 days ago

It comes as it emerged that the Port Glasgow yard was not certain to get the money it needs to complete a lifeline island vessel at the centre of a "new farce" over soaring delays and costs.
Ferguson Marine has struggled with the long-delayed and wildly over-budget construction of MV Glen Sannox and MV Glen Rosa, the first dual-fuel ferries built in the UK capable of running on liquefied natural gas.
What is Ferguson Marine?
Ferguson Marine is a historic shipyard located in Port Glasgow, on the River Clyde in Scotland. Founded in 1903, it has been a significant part of Scotland's shipbuilding heritage and is one of the last remaining shipyards in the country capable of building large vessels.
Why is Ferguson Marine important to Scotland?
It represents the legacy of Scottish shipbuilding and provides skilled employment in the Inverclyde area, which has suffered from deindustrialisation.
It is seen by many as a national asset in terms of maritime capabilities. Its supporters say the nation needs a domestic shipbuilding base for building and maintaining vessels for ferries, defence, and offshore industries.
Politically, it also stands as a symbol of the Scottish Government's ambition to maintain and revive industrial capacity, especially under public ownership.
What is the current status of Ferguson Marine?
The state-owned shipyard located in Port Glasgow, Scotland, is facing significant challenges. The shipyard has been working on two ferries, the Glen Sannox and the Glen Rosa, which have experienced extensive delays and cost overruns. Originally scheduled for completion in 2018 with a budget of £97 million, the costs are expected to rise to more than five times that figure. The Glen Sannox finally commenced service in January 2025, while the Glen Rosa's arrival has been put back for a further six months and will not see service until between April and June of next year at the earliest - while costs have risen by a further £35m.
What are the main challenges facing Ferguson Marine?
The primary issues relate to financial sustainability because the shipyard is said to lack confirmed contracts beyond the completion of the current ferries, raising concerns about its future viability.​ It has just lost a key contract to delivery seven loch-class ferries for Scotland to Poland.
There are concerns about its operational efficiency as delays and cost overruns have highlighted issues in project management, And there has been concerns about leadership stability with a series of executive and managerial changes and past difficulties in recruiting a permanent chief executive.
It has been by reputational issues with its most high profile problem - the much- delayed and over-budget delivery of two ferries - Glen Sannox and Glen Rosa - which were meant to be operational in the first half of 2018. Reports highlighted serious problems in project management, including design flaws, poor documentation, and quality control failures.
CalMac (Image: PA) It led to the Scottish Government's nationalisation of Ferguson Marine to prevent its collapse. This move saved jobs but brought the yard's problems into the public sector.
What are the broader implications for Scotland from these issues?
It has damaged confidence in the Scottish Government's and the yard management's ability to manage large infrastructure projects.
Delays to new ferries have exacerbated transport problems for islanders, affecting tourism, supplies, and daily life.
It also raises questions about how and whether governments should intervene in failing industries — and how to do so effectively.
Why does Ferguson Marine require support?
As the last commercial shipyard on the Clyde, it is a significant employer in Port Glasgow, and its closure would adversely affect the local economy.​ It has strategic importance as it is the only remaining shipyard on the lower Clyde that builds commercial ships.
The success or failure of Ferguson Marine may influence whether Scotland maintains a sovereign shipbuilding capability or becomes entirely reliant on private and international yards.
It is considered by its advocates that maintaining domestic shipbuilding capabilities in Scotland is vital for national infrastructure and maritime needs.​ But investment is needed to modernise facilities and secure future contracts.
GMB, the main union representing staff at the yard is instrumental in representing the interests of the workforce. It has been actively advocating for job security - to ensure that employees' jobs are protected amid the shipyard's financial uncertainties.​ It opposes plans for privatisation, arguing that public ownership is crucial for the yard's stability and future.​ And it has been calling for government investment.
What is the future outlook for Ferguson Marine?
The future of Ferguson Marine remains uncertain. While there are opportunities, such as potential contracts for further small ferry replacements and collaborations with larger shipyards, these are said to be contingent on securing the necessary investment and improving operational efficiency. The Scottish Government's commitment and the shipyard's ability to address its challenges are considered to be critical in determining its long-term viability .​
What steps are being considered to secure the shipyard's future?
Ferguson Marine has been exploring collaborations with larger shipyards to enhance competitiveness for new contracts and has been proposing investments to upgrade shipyard infrastructure.