Embattled Clyde shipyard Ferguson Marine shortlisted to build 7 new CalMac ferries

The Port Glasgow yard, which is still struggling to finish the first of two CalMac ferries which are more than six years late, is up against five other bidders from across the world for the £175 million order.

They include Turkish yard Cemre Marin Endustri that won the last CalMac contract for four ferries under construction for Islay and the Little Minch, which are running four months behind schedule.

Scottish Government-owned Ferguson Marine is not been expected to win the latest order because it is seen as needing modernisation to become more competitive, which is to be funded by a £14 million state grant announced in July.

However, the Scottish Government’s ferry-buying firm Caledonian Maritime Assets Limited (Cmal) said on Wednesday that those shortlisted had scored highest among the 13 yards which were interested in the contract, in a “robust assessment against set criteria, including their suitability to take on this project”. The yards were assessed against specific criteria for the so-called “small vessel replacement programme”, including their facilities, capacities and capabilities.

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The four others chosen to bid comprise UK firm Cammell Laird, Asenav of Chile, multinational firm Damen Offshore & Specialised Vessels and Remontowa Shipbuilding of Poland, which has built several CalMac ferries, including its main Islay route vessel Finlaggan.

Bids are due to be lodged by January, with the contract expected to be awarded in March. The contract will also include port improvements and shore power upgrades.

The ferries will operate on the Colintraive-Rhubodach (Bute), Lochaline-Fishnish (Mull), Tarbert (Loch Fyne)-Portavadie, Iona-Fionnphort (Mull), Sconser-Raasay, Tobermory-Kilchoan (Mull) and Tayinloan-Gigha routes.

The GMB union, which represents workers at Ferguson Marine, had called for the yard to be directly awarded the contract.

However, Deputy First Minister Kate Forbes said in July when she announced the yard’s upgrade funding that such a move would have legal complexities, which would delay the start of ferry construction.

Despite repeated delays to Ferguson Marine’s completion of Glen Sannox for CalMac, which have largely been attributed to mistakes by its previous owners, the yard successfully built the operator’s last fleet of small ferries, and Cmal has said it would “absolutely entrust” it with a similar order. A spokesperson for the yard, known officially as Ferguson Marine (Port Glasgow) or FMPG to differentiate it from its previous owners, said on Wednesday: “This is excellent news and a testament to the FMPG team who prepared a robust submission for the first stage.

“We will focus on developing and submitting a strong bid to build the small vessels for Cmal, something the Ferguson Marine shipyard is well placed to deliver. We have the people, skills, experience and detailed knowledge required.”

The yard’s interim chief executive John Petticrew had told The Scotsman this month he hoped it would be shortlisted if only to see how competitive it was, “as opposed to urban myths as to where we sit”.

He also said in July: “We will aggressively bid for them and hopefully we’re in the ball park - 100 per cent we have the experience.”

David Tydeman, whom Mr Petticrew replaced in March, told The Scotsman on Wednesday the yard would have to cut costs to win - and its competitors may be able to build the ferries quicker and cheaper.

He said: "Damen will probably quote through their low-cost Romanian yard, so predictable lower prices will come from Poland, Romania and Turkey.

“I expect they will also promise fast delivery - perhaps all seven before the end of 2026, subject to possible long lead times from battery and other specialist suppliers.

“The equipment budget is likely to be about 40 per cent of the build cost and this should be the same from all bidders - so the variation will be the number of man hours to build, the man hour rate and the costs for yard overheads and management.

“It's this last point where Ferguson needs hard work - its overheads are too high and need cutting from top down.

“Whilst I'm sure Cmal and Transport Scotland can justify a social value premium for UK jobs versus the small extra cost for deliveries of ships from abroad, there will have to be consistency about protecting jobs in Liverpool with Cammell Laird and Port Glasgow with Ferguson Marine.

“The decision is whether faster and cheaper delivery is the better choice for islanders jobs and businesses." Cmal chief executive Kevin Hobbs said: “We received interest from many shipyards across the world, and carried out a robust assessment against set criteria, including their suitability to take on this project.

“Six shipyards scored the highest across the criteria, and have now been issued an invitation to tender for the contract.

“We look forward to reviewing the tender documents in the new year, and delivering the electric vessels which will continue our rejuvenation of the fleet and shore infrastructure for island communities.”  

Connectivity minister Jim Fairlie said: “Our intention is that these ferries would be deployed on seven existing routes, but would also bring benefits to two other routes from the redeployment of existing vessels. This procurement is a vital step forward in our plans to improve our ferry services.”

Scottish Conservatives transport spokesperson Sue Webber said: “Making this shortlist is a much-needed boost for Ferguson Marine, who have been let down by the SNP’s gross incompetence for far too long.

“Ministers who have been addicted to secrecy throughout their ferry fiasco must now be fully transparent about how this procurement process is progressing. Otherwise, islanders will once again feel SNP ministers are totally disconnected from the reality facing them.

“Ministers must also ensure that whoever this is awarded to delivers ferries that are on time and on budget, rather than repeating the scandalous situation that has occurred with previous awards.”