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Why did ScotGov support award of ferry contracts to overseas firms
Why did ScotGov support award of ferry contracts to overseas firms

The Herald Scotland

timea day ago

  • Business
  • 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.

Turkey ferry to be delivered seven years faster than Scots fiasco ship
Turkey ferry to be delivered seven years faster than Scots fiasco ship

The Herald Scotland

timea day ago

  • Business
  • 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.

Turkish-built CalMac ferry completes first sea trials
Turkish-built CalMac ferry completes first sea trials

Yahoo

time2 days ago

  • Business
  • Yahoo

Turkish-built CalMac ferry completes first sea trials

The first CalMac ferry being built by a shipyard in Turkey has completed its initial set of sea trials. MV Isle of Islay is one of four new ferries being built for Scotland's west coast routes by the Cemre shipyard at Yalova. The contract was awarded in March 2022 with delivery expected last October but after a series of delays it is now likely to enter service later this year. CalMac has extended the charter of the catamaran Alfred for a further five months to provide extra capacity while it awaits the arrival of new vessels. Representatives from CalMac, ferries procurement body CMAL and UK regulators were present as MV Isle of Islay underwent eight days of technical trials off the Turkish coast. CMAL said it now hoped to provide an updated delivery date once a second set of sea trials have been conducted during the summer. Director of vessels Jim Anderson added: "There is a great feeling of momentum following the successful completion of this first phase of sea trials." CMAL has previously said the delays in construction are partly due to the impact of the 2023 Turkish earthquake and global supply chain problems. Fresh delays to Turkish-built CalMac ferries Turkish-built CalMac ferry successfully launched The new "Islay-class" ferries have conventional diesel engines, used to generate electricity for electric motors, and also large batteries which can provide power when manoeuvring in harbour. They will be the first large vessels in the CalMac fleet fitted with a Voith Schneider propulsion system, which uses vertical spinning blades instead of a traditional propeller and rudder. The next stage of construction will involve installing the batteries and testing how the ships perform in harbour. CalMac has warned it faces another difficult summer due a shortage of vessels and potential breakdowns of its ageing fleet. MV Glen Sannox, built by the Ferguson shipyard, entered service in January on the Arran route but other large vessels have been out of action, and one vessel, MV Hebridean Isles, was retired in November. The situation should start to ease next week when the old Arran ferry MV Caledonian Isles returns to service after 16 months of repairs. The 32-year-old ship is expected back from 12 June, providing the first Arran sailings out of Ardrossan since January because Glen Sannox is too large to fit and has to sail from Troon instead. CalMac has also extended the charter for MV Alfred from Pentland Ferries until October at a cost believed to be around a million pounds a month. The catamaran has been on charter now since the spring of 2023, meaning the charter fees are far in excess of the £14m which the vessel cost to build. MV Isle of Mull is currently in dry dock for the fitting of a replacement evacuation chute system after a fault left it restricted to carrying just 45 passengers. While no date for the arrival of the new ferry MV Isle of Islay has been announced, it should be in service later this year, with three similar vessels following on at six monthly intervals. MV Glen Rosa, sister ship of MV Glen Sannox, is still being fitted out at the Ferguson shipyard in Port Glasgow. The two ships are larger and have more complex dual-fuel gas propulsion systems, but Glen Rosa is now expected to be delivered between April and June next year.

MV Isle of Islay completes first sea trials in Turkey after months of delays
MV Isle of Islay completes first sea trials in Turkey after months of delays

STV News

time2 days ago

  • Business
  • STV News

MV Isle of Islay completes first sea trials in Turkey after months of delays

The MV Isle of Islay has successfully completed its first sea trials in Turkey following months of delays. The trials took place from May 22 to 30 in the Sea of Marmara, and staff from CMAL and CalMac were in attendance. It comes after the handover date for the vessel was pushed back from the week of August 19 last year. CalMac previously said the ferry was due to be delivered from the yard in the Middle East by the end of the year. The ferry operator said the first part of the trials saw the set-up of the propulsion systems, generators, thrusters, stabilisers and associated electrical systems The systems were then tested, trialled and measured with Lloyd's Register and the Marine Coastguard Agency (MCA) in attendance. The tests evaluated the vessel's performance at full load, including speed, stability, manoeuvrability, anchor deployment/recovery and endurance. CalMac added that the trials also established the effectiveness of the vessel's propulsion plant, automation and navigational systems. Jim Anderson, director of Vessels at CMAL, said the trials were a 'great step forward' in the building process. 'The team at Cemre are working hard to prepare the vessel for delivery', he added. 'There is a great feeling of momentum following the successful completion of this first phase of sea trials.' The second set of sea trials will take place later this summer, following the installation of the vessel's battery system and harbour acceptance trials of the hybrid system. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country

MV Isle of Islay successfully completes first sea trials in Turkey
MV Isle of Islay successfully completes first sea trials in Turkey

The National

time2 days ago

  • Business
  • The National

MV Isle of Islay successfully completes first sea trials in Turkey

MV Isle of Islay trials took place this week with staff from Caledonian Maritime Assets Limited (CMAL) and CalMac in attendance in the Sea of Marmara in Turkey. Officials announced in March that the ship, which is being built by the Cemre Marin Endustri shipyard east of Istanbul, was to be delayed by at least three months due to labour shortages and poor weather. The contract for four ferries was awarded to the shipyard in March 2022. The MV Isle of Islay, which will serve Islay and Jura, was expected to be delivered in October of 2024. READ MORE: Island community take ownership of 5000-year-old Tomb of the Eagles The delivery of the Isle of Islay is now expected at the end of this year's second quarter. 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. Testing 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.' The second set of sea trials will take place later this summer, following the installation of the vessel's battery system and harbour acceptance trials of the hybrid system. Three other ships – the MV Loch Indaal, MV Lochmor and MV Claymore – are being built in Turkey.

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