Ferguson Marine misses out on £175m CalMac ferry contract

Ferguson Marine shipyard has missed out on the £175m contract for seven new electric ferries for Caledonian MacBrayne. 

Caledonian Maritime Assets Limited (CMAL), the procurement agent for the ferries, announced Polish shipyard Remontowa as the preferred bidder. 

The small vessels replacement programme had been a key part of Ferguson Marine’s five-year recovery strategy, following major delays and spiralling costs in the construction of the MV Glen Sannox and the MV Glen Rosa for Caledonian MacBrayne. 

Scotland’s nationalised shipyard said it would “aggressively” bid for the work and had made it onto a shortlist of six firms bidding for the contract. 

However, CMAL said it had to “appoint a yard capable of producing quality vessels” representing the best value for money. 

The first all-electric vessels are expected in 2027 and will help support island communities whilst bolstering the resilience of the Clyde and Hebrides ferry network. 

Kevin Hobbs, chief executive of CMAL, said: “It is our responsibility to follow the public procurement strategy for Scotland and appoint a yard capable of producing quality vessels which meet the needs of islanders, but that also deliver the best value for the public purse. 

“We are confident in Remontowa’s ability, and have worked with them before, most recently with the delivery of the MV Finlaggan in 2011.” 

The Scottish Conservatives have warned the announcement could be the “death knell” for the shipyard. 

The party’s shadow transport secretary Sue Webber said: “This announcement is devastating for Ferguson Marine and could yet prove the death knell for the yard. 

“It should be a given that a nationalised shipyard wins a Scottish Government contract. Yet it’s a measure of how badly the SNP have mismanaged Ferguson’s that ferries which should be built on the west coast of Scotland are instead to be made in eastern Europe.  

“The blame for this outrageous situation lies squarely with incompetent SNP ministers who have let down workers at the yard, and ferry passengers across Scotland, at every turn. 

“SNP ministers can’t pass the buck any longer on this scandal. They must immediately explain to Parliament why this decision was made and what steps they are taking to ensure the yard has a viable future.” 

However, transport secretary Fiona Hyslop described the announcement as a “milestone” to deliver the seven new ‘loch-class’ ferries. 

She said: “These seven new vessels will help improve connectivity and resilience for island residents, businesses and communities, and their electric operation will contribute to reduced carbon emissions from Scotland’s ferry fleet and make ferry travel more sustainable.” 

David Dishon, chief financial officer at Ferguson Marine, said: “Naturally we are disappointed that we were not selected as the preferred bidder for the small vessel replacement programme. 

“Ferguson Marine is perfectly positioned for this type of work. 

“Six of CalMac’s major vessels started life at our yard in Port Glasgow, including three ferries incorporating a low-carbon hybrid system of traditional diesel power and electric lithium-ion battery power - the first of their kind in the world at the time.” 

Despite the setback, Dishon said he “remains optimistic” about winning future contracts.  

He added: “We remain optimistic about the future of the yard and ongoing discussions with commercial partners continue to progress with promise. 

“We have also begun plans to allocate the first phase of the £14.2m in capital investment from the Scottish Government, which will support us in making vital updates to the yard, its equipment and infrastructure.” 

Scottish Labour’s transport spokesperson Claire Baker described the news as “another blow” to Scottish shipbuilding. 

She said: “On the SNP’s watch, Scotland’s iconic shipbuilding industry has been let down and jobs and investment are going overseas.  

“Once again, this SNP government is failing to stand up for Scotland and support our key industries.  

“The SNP’s ferry fiasco has done immense damage to island communities, cost taxpayers eye-watering sums and left the Scottish shipbuilding industry out in the cold.  

“It’s time for a real ferry plan that will modernise our ageing ferry fleet, keep jobs and opportunities in Scotland, deliver a reliable service for islanders and provide good value for taxpayers.” 

A Scottish Government spokesperson said: “We understand that Ferguson Marine Port Glasgow is disappointed not to be selected as lead bidder for SVRP. 

“The board has developed a new business strategy which targets a range of opportunities where the yard is capable and hopeful of winning new work.  

“Ministers back the board’s vision and have allocated up to £14.2m over the next two financial years to enhance yard infrastructure and deliver productivity improvements, provided standard commercial tests can be satisfied.”