Ferguson Marine shipyard loses out on key CalMac ferry contract

Ferguson Marine has failed to secure a key contract to build seven all-electric ferries for Caledonian MacBrayne, with Polish shipbuilder Remontowa named as the preferred bidder.

The government-owned Port Glasgow yard had been among six shortlisted contenders for the Small Vessels Replacement Programme (SVRP) and had vowed to compete "aggressively" for the work.

The new "Loch-class" ferries are expected to enter service from 2027.

The contract was seen as a cornerstone of Ferguson’s five-year recovery plan, following delays and cost overruns on two larger CalMac ferries.

Polish firm named preferred bidder

The 50m (164ft) electric vessels align with previous successful builds by the yard and could have provided a steady workload for years.

Despite missing out, Ferguson Marine is continuing to seek other projects, including defence sub-contracting for BAE Systems and private sector contracts.

Gdansk-based Remontowa has a history of working with CalMac, having built the MV Argyle, MV Bute, and MV Finlaggan.

The firm previously lost out to Ferguson when contracts for MV Glen Sannox and MV Glen Rosa were awarded in 2015.

'Disappointed'

Ferguson Marine's CFO and Accountable Officer, David Dishon, 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.

“We are very proud of our bid and although we priced it competitively, we were up against extremely tough competition from yards outside the UK which benefit from significantly reduced operating costs and advanced capital investment programmes. The weighting for price will therefore place all UK yards at a disadvantage. However we were pleased to see Ferguson Marine's bid rated so highly on quality.

Reaching the final round of bidding demonstrates the strength of our proposal and gives us renewed confidence in our ability to produce Clyde-built ships that are world class.

“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 £14.2 million in capital investment from the Scottish Government, which will support us in making vital updates to the yard, its equipment and infrastructure.

“We’d like to thank CMAL for the opportunity to bid for phase one of this contract, and look forward to finding out more about phase two in due course.”

'New business strategy'

A Scottish Government spokesperson said: “We understand that Ferguson Marine Port Glasgow are 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 £14.2 million over the next two financial years to enhance yard infrastructure and deliver productivity improvements, provided standard commercial tests can be satisfied.”

'Milestone'

However, Cabinet Secretary for Transport, Fiona Hyslop said: “I welcome this milestone being reached in the procurement to build and deliver seven new small vessels to our ferry network.

“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.

“I appreciate all the work that has gone into getting us to this important stage of the procurement process, particularly by CMAL, and am hopeful that we can look forward to contracts being signed at the end of the required standstill period.”

'Confident in Remotowa's ability'

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.

"We will now enter a 10-day standstill period before finalising the contract.”

Third of fleet renewed

Duncan Mackison, CalMac’s Chief Executive Officer, said: “Confirming the lead bidder is a significant milestone for CalMac, and we’re excited to welcome new, modern small vessels to the fleet from 2027 onwards.

"Small vessels are an integral part of our operation, and new tonnage will allow us to improve the resilience of our service and the experience customers have on these routes.

“These seven new vessels, when combined with the six major new vessels joining the fleet in 2025 and 2026, will mean a third of our entire fleet has been renewed.”

'I will be making representations today'

While local MP Martin McCluskey said the decision was "incredibly disappointing" for the area.

"Fergusons successfully built vessels similar to these in the past and could again," he said.

"The contract award took no consideration of the social impact of not awarding these contracts to Port Glasgow - the same mistake cannot be made in the next round of the Small Vessels Replacement Programme.

"The workers in the yard deserve a break after years of being let down by the Scottish Government and poor management. I will be making representations to the Scottish Government today - as the owners of the yard - for them to lay out their plan to secure the jobs at the yard."

'Death knell for the year'

Scottish Conservative shadow transport secretary Sue Webber MSP 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.”

'Blow to Scottish shipbuilding'

Scottish Labour Transport spokesperson Claire Baker said “This is another blow to Scottish shipbuilding and the industry’s skilled workers.

“On the SNP 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.”

This is a breaking news article which is being updated.

Hear the latest news on Downtown on FM, DAB, smart speaker or the Rayo app.