Ferguson Marine loses out again on new ferry contract in 'disappointing' blow
The Ferguson Marine shipyard on the River Clyde has lost out again on a contract to build new ferries. The nationalised firm, based in Port Glasgow , had submitted a bid to build two new small vessels for Western Ferries' Gourock to Dunoon route on the river, which was used by 1.2 million passengers last year. However, the BBC reported on Friday, April 25 that the ferry operator announced Cammell Laird, based at Birkenhead, Merseyside, was its preferred bidder to take on the contract. Two of Western Ferries' current fleet were built in the early 2000s when the Ferguson Marine yard was privately owned . The decision has left the firm still with no new orders, after it was snubbed in favour of a Polish yard for a contract to build seven new ferries in March, which was described as a "huge blow" . David Dishon, chief financial officer at Ferguson Marine , said of the latest decision: "Having submitted a high-quality bid, this news is disappointing. "However, Ferguson Marine remains focused on securing new work from a range of sources to build its pipeline." Mr Dishon said private investment for new vessels was "vitally important" to the economy and congratulated Cammell Laird on their winning bid. He added: "We wish both companies every success and hope to continue our long-standing working relationship with Western Ferries in the future." Ferguson Marine, which employs around 300 workers in an area of high deprivation, was nationalised in 2019 after struggling to deliver two new car ferries, MV Glen Sannox and MV Glen Rosa , the latter of which has still not been completed. MV Glen Sannox received praise from passengers after it was launched on the Arran route in January. However, it was pulled from service just two months later after a hairline crack in its hull led to a leak. It was quickly repaired and the ferry returned to service two days later.
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The Herald Scotland
3 days ago
- The Herald Scotland
Why did ScotGov support award of ferry contracts to overseas firms
It has been confirmed successful sea trials means that MV Isle of Islay - one of the first of the four ferries being built in Turkey in the wake of Scotland's ferry fiasco - is on target to be delivered sometime between next month and September. Why did CMAL award ferry contracts to shipyards in Turkey and Poland? The Scottish Government -owned ferry and port owner CMAL awarded contracts to build ferries to Cemre Shipyard in Turkey and Remontowa Shipbuilding in Poland based on competitive procurement processes. These shipyards demonstrated the capability to deliver vessels that met technical specifications, timelines, and budgetary constraints. The Cemre yard and (inset) one of the vessels it is delivering for Scotland (Image: .) Remontowa was awarded a £175 million contract to build seven all-electric ferries, having received the highest score during the bidding process . The Turkish shipyard Cemre Marin Endustri was contracted to construct four new roll-on/roll-off passenger and vehicle ferries for Scotland's west coast ferry network. These vessels are intended to enhance services on routes to the Isle of Islay and the Little Minch corridor, which includes Skye, Harris, and North Uist. The deals together were worth £206m. Why was Ferguson Marine, the Scots state-owned shipyard firm not awarded these contracts? The Inverclyde firm had faced several challenges that affected its competitiveness in the bidding process. Firstly a lack of experience. The shipyard had not completed any ferries in the past five years, failing to meet the tender's requirement to show recent experience in building at least three similar ferries. READ MORE: 'Laughable': Turkey-built ferry to be delivered seven years faster than fiasco ship Cost to repair CalMac ferry now £2m more than to buy replacement Why has a 'rudderless' CalMac ferry been out of action for 16 months 'Final nail in coffin'. Scots fiasco firm loses out on big ferry contract to Poland 'Material uncertainty' over Scots ferry operator future amidst £45m funding hike 'Mismanagement': Public cost of Scots ferry fiasco firm hits £750m amidst overspends It had financial and operational issues. Ferguson Marine's previous projects, such as the Glen Sannox and Glen Rosa, were significantly delayed and over budget, raising concerns about the yard's financial stability and project management capabilities. CMAL's procurement process emphasized technical and financial suitability. Ferguson Marine is understood to have not scored as highly as other bidders in these areas. What were the issues with the Glen Sannox and Glen Rosa projects? The issues with Glen Sannox and Glen Rosa has become known as Scotland's ferry fiasco. Glen Rosa and Glen Sannox's arrival to serve islands was scheduled to be online in the first half of 2018. Glen Sannox finally went into service on January but islanders are still awaiting the arrival of Glen Rosa. Glen Sannox (Image: Andrew Milligan/PA) Both vessels were significantly behind schedule and over budget. Glen Rosa's delivery has been delayed until spring 2026, with costs soaring. Costs of the entire project are currently expected to have multiply five-fold from the original £96m price. The delays were down to design and construction flaws. Problems included inadequate planning, quality issues, and a lack of detailed construction plans with CMAL and Ferguson Marine blaming each other for failings. The contract also lacked adequate financial safeguards, such as a builder's refund guarantee, which would have protected public funds in case of project failures. What are the implications of awarding contracts to overseas shipyards? Awarding contracts to overseas shipyards has both advantages and disadvantages. Overseas shipyards like Cemre and Remontowa, it is felt, have demonstrated the ability to deliver vessels on time and within budget. These shipyards have experience building similar vessels, ensuring adherence to technical specifications. But the disadvantages are the economic impact on Scotland. Excluding domestic shipyards like Ferguson Marine can have negative effects on local employment and the Scottish shipbuilding industry. Ferguson Marine has previously indicated that losing ferry contracts had an effect on its ability to continue as a going concern. Ferguson Marine (Image: Colin Mearns) The decisions on the contracts have sparked political criticism and debates over the government's commitment to supporting domestic industries. What lessons have been learned from these experiences? While the decision to award ferry contracts to overseas shipyards was based on factors like cost, efficiency, and technical capability, it has raised important questions about the future of domestic shipbuilding in Scotland and the need for improved procurement practices. The challenges faced in ferry procurement have highlighted the need for robust procurement processes and that contracts should include builder's refund guarantees to protect public funds. It has also shown the requirement to balance the need for cost-effective procurement with the importance of supporting local industries.
The Herald Scotland
3 days ago
- The Herald Scotland
Turkey ferry to be delivered seven years faster than Scots fiasco ship
It has been confirmed that the first of successful sea trials means that MV Isle of Islay - one of the first of the four ferries being built in Turkey in the wake of Scotland's ferry fiasco - is on target to be delivered sometime between next month and September. That means that the ferry will have taken just less than three years to be complete, with work starting in October, 2022. Meanwhile, the delivery of MV Glen Rosa - the second of Scotland's two ferry fiasco vessels, is running nearly eight years late. The latest in a long series of rescheduled delivery dates for the ship shows that it is due online sometime between April and June - next year. That's over ten years after the first steel was cut on the Ferguson Marine vessels. Glen Rosa and sister ship MV Glen Sannox were due online in the first half of 2018 when Ferguson Marine was under the control of tycoon Jim McColl, with both now due to serve Arran. The last estimates suggest the costs of delivery could more than five-fold from the original £97m cost. MV Glen Rosa - before a delayed launch (Image: Newsquest) It comes as state-owned ferry and port owner CMAL said the first sea trials for MV Isle of Islay had been carried out successfully by Cemre Marin Endustri in Yalova, Turkey. The trials took place from Thursday, May 22 to Friday, May 30 in the Sea of Marmara, with staff from CMAL and state-owned ferry operator CalMac in attendance. CMAL said the first part of the sea trials saw the set-up of the propulsion systems, generators, thrusters, stabilisers and associated electrical systems. These were then tested, trialled and measured with Lloyd's Register and the Marine Coastguard Agency (MCA) in attendance. The delivery date is predicated on the outcome of two sets of sea trials with the second due to take place later this summer, following the vessel's battery system and harbour acceptance trials. READ MORE:] Why did Scots ministers support award of £381m in ferry contracts to overseas firms Cost to repair CalMac ferry now £2m more than to buy replacement Why has a 'rudderless' CalMac ferry been out of action for 16 months 'Final nail in coffin'. Scots fiasco firm loses out on big ferry contract to Poland 'Material uncertainty' over Scots ferry operator future amidst £45m funding hike 'Mismanagement': Public cost of Scots ferry fiasco firm hits £750m amidst overspends A ferry user group official said: "It is great news to hear that things are going well with the Islay ferry. Islanders have long been calling for better investment into ferry services and so to hear that there have been successful sea trials fills me with optimism on that score. "What is incredible and quite frankly laughable is that it is likely to be completed way before Glen Rosa every makes its way to Arran. "It is, perhaps, not the greatest surprise in the world, and you do have to take into account Glen Rosa is a bigger ship than Islay, but nevertheless it is yet another example, if any more were needed of the dire mismanagement of ferries in Scotland." Islay is being built to hold 450 passengers and 107 cars, while Glen Rosa is designed for up to 852 passengers and 127 cars. "That's not to say that Ferguson Marine could not have built Islay. Ideally a Scottish company would do the job. But we know there are problems there that need to be resolved." Ferguson Marine (Image: Colin Mearns) MV Isle of Islay is the first of four ferries being built at the Turkish yard, and marks what Sottish Government-owned ferry owner and procurer Caledonian Maritime Assets Limited (CMAL) says is a "major milestone in its commitment to delivering new ferries to serve the Scottish islands". MV Isle of Islay and sister ship MV Loch Indaal are being both being constructed for CalMac's Islay service. Construction of the vessels got officially underway in October, 2022 after the £105m contract was controversially given to the Turkish shipyard. CMAL has said that the new 310-foot vehicle passenger ferries will provide a combined 40% increase in vehicle and freight capacity on the Islay routes and "improving the overall resilience" of the wider fleet. Testing of Islay evaluated the vessel's performance at full load, including speed, stability, manoeuvrability, anchor deployment/recovery and endurance. The trials also established the effectiveness of the vessel's propulsion plant, automation and navigational systems. Jim Anderson, director of vessels at CMAL, said: 'This is a great step forward in the build programme of the Isle of Islay. The team at Cemre are working hard to prepare the vessel for delivery. There is a great feeling of momentum following the successful completion of this first phase of sea trials.' After a series of false dawns, len Rosa was expected to be taking passengers in September - but now state-owned Ferguson Marine has admitted the full sign off and deliver will not be till the summer of next year - between April and July. Meanwhile the total forecast costs has increased by £22.5m with a further 'risk contingency' of £12.5m. But the £35 million extra public costs for Glen Rosa being asked for by Ferguson Marine is to become subject to further 'due diligence' probing by ministers before a decision is made on whether the extra money will be provided. Last year wellbeing economy secretary Màiri McAllan said nationalised Ferguson Marine considered the latest delays and costs forecasts - which had Glen Rosa ready to use in September - was the "final position" after the firing of chief executive David Tydeman.
Daily Mail
4 days ago
- Daily Mail
Swinney 'not fit to lead' after dangerous defence jobs snub, blasts Sarwar
is 'not fit to lead our country', Anas Sarwar said yesterday, as he savaged the First Minister's 'stupid and dangerous' defence jobs snub. The Scottish Labour leader laid into Mr Swinney over his refusal to support Scottish firms involved in 'munitions' despite growing global instability. Keir Starmer also said it was 'staggering' the SNP had denied £2.5million towards an £11million Rolls-Royce welding centre on the Clyde as it was linked to an 'attack submarine'. The Conservatives said the Nationalist ideology 'endangers national security'. But Mr Swinney insisted the policy, which predates Russia's invasion of Ukraine and a surge in NATO defence spending, was still justified. He also defended rejecting a high-level security briefing this week to pose with toddlers at a soft play centre for the SNP campaign in the Hamilton byelection. The row followed jobs quango Scottish Enterprise refusing to put public money into creating a specialist welding centre for Royal Navy submarines because of a policy barring public funding for 'munitions'. However the state-owned Ferguson Marine shipyard on the Clyde is currently helping build the Navy's new T26 frigates, which will be armed to the teeth. Speaking in Hamilton yesterday, Mr Sarwar said Mr Swinney had to decide whether to 'live in the real world or in a university student debating chamber'. He said: 'If he says there's no public money going towards munitions, are we going to Uber the missiles in? 'Are we going to Deliveroo the equipment If someone tries to attack us? 'It's completely and utterly incoherent, frankly stupid and dangerous, and it demonstrates why he's not fit to lead our country.' Tory MSP Stephen Kerr added: 'John Swinney is more interested in virtue signalling than the security of Scotland and the United Kingdom. 'He needs to call a halt to his usual brand of petty politics and accept reality. 'The Nationalists need to ditch their ideological position which endangers national security.' Launching the Strategic Defence Review in Glasgow on Monday, Sir Keir said the UK had to be 'battle-ready' because of rising global threats and said thousands of new jobs would come from a 'defence dividend' as the UK ramped up security spending. Asked by Dunfermline Labour MP Graeme Downie about the Rolls-Royce row at Prime Minister's Questions, Sir Keir said: 'At a time of global conflict, it is staggering that the SNP policy is to block an £11million investment for a new national welding centre on the Clyde. I was there earlier this week and saw the huge potential for apprenticeships, for job opportunities, and for young people. I support it - the SNP blocks it.' Scotland Office Minister Kirsty McNeill also told MPs she was 'appalled' that Mr Swinney 'snubbed a confidential briefing' on the Review to campaign. But Mr Swinney stood by the munitions policy and the decision to let SNP veterans minister Graeme Dey take the security briefing from UK veterans minister Alistair Carns. 'The Scottish Government has a long-standing policy that we don't use public expenditure to support the manufacture of munitions. It's been applied in this case in the proper fashion. Asked if that was an 'ivory tower' position given rising global security threats, he said: 'No. It feels like a long-standing policy position that's been applied consistently.' On the security briefing, he said: 'There was an offer of a phone call from the UK Government Minister, and it was taken by the relevant minister in the Scottish Government. That's how we operate normally.'
