Ferguson shipyard misses out on new CalMac ferry order

The nationalised Ferguson shipyard has missed out on a crucial order for seven small all-electric ferries for west coast operator Caledonian MacBrayne.
Ferries procurement agency CMAL has instead named a Polish firm, Remontowa, as preferred bidder for the small vessels replacement programme (SVRP).
Fergusonâs, the last commercial shipyard on the Clyde, had vowed to bid âaggressivelyâ for the contract and had made it onto a shortlist of six bidders.
A total of ÂŁ175m has been allocated to build the new âloch classâ vessels and complete harbour and shore power upgrades. The first ferries are due to join the CalMac fleet in 2027.
The contract was a key part of Ferguson Marineâs five-year business plan following delays and cost overruns in the construction of two much larger ferries for CalMac.
The 50m (164ft) all-electric ferries are similar to ones it has delivered successfully in the past by the Port Glasgow shipyard, and could have given it a pipeline of repeatable work lasting several years.
GMB convener Alex Logan said it was a blow to a workforce whose reputation had been dragged down by the âincompetence and miscalculation of othersâ.
âThey deserve better and this contract should have allowed the yard to seize back a reputation for excellence unfairly torn away,â he said.
âThe Scottish government is investing in the yard but what use is investment without contracts?
âWe had a worldwide reputation for building small vessels and sending this work overseas makes no sense for the workers, for islanders or for the people of Scotland.â
Scottish government-owned CMAL said the award to the Polish firm represented âbest valueâ for the public purse.
But Scottish Labour said the government had failed to stand up for key Scottish industries, while the Scottish Conservatives claimed SNP mismanagement could prove to be the âdeath knellâ for Fergusonâs.
The Ferguson bid for the SVRP is understood to have ranked well for quality but missed out due to the difficulties in matching overseas yards on cost.
Chief financial officer David Dishon said: âWe 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.
âThe weighting for price will therefore place all UK yards at a disadvantage. However, we were pleased to see Ferguson Marineâs bid rated so highly on quality.â
Remontowa has previously built the CalMac ferries MV Argyle, MV Bute and MV Finlaggan, and was runner up to Fergusonâs when the contracts for MV Glen Sannox and MV Glen Rosa were awarded in 2015.
Price competition from the Gdansk-based firm was blamed for the decline of Ferguson Shipbuilders in the early 2000s â and in 2005 SNP politicians joined the yardâs management in lodging a complaint with the European Commission about unfair subsidies.
Remontowa and the Polish government denied the claim.

CMAL chief executive Kevin Hobbs said the bids had been assessed against a range of technical and financial criteria, weighted 65% on quality and 35% on cost.
He said: âIt 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.
âWe are confident in Remontowaâs ability, and have worked with them before, most recently with the delivery of the MV Finlaggan in 2011.â
There now follows a 10-day âstandstill periodâ after which the contract will be signed.
The new 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.
Phase two of the programme will see the purchase of three more vessels which are capable of handling more challenging sea states, but that contract will go to tender separately.
Reduced carbon emissions
Transport Secretary Fiona Hyslop said the new ferries would improve âconnectivity and resilianceâ for island communities.
âTheir electric operation will contribute to reduced carbon emissions from Scotlandâs ferry fleet and make ferry travel more sustainable,â she added.
The ferries will also be fitted with back-up diesel engines, and CMAL has previously warned they may operate on diesel initially because of challenges in upgrading the power grid.
Ferguson Marine had lobbied along with trade unions and local politicians for the publicly-funded small vessels replacement programme contract to be awarded to it directly.
But the Scottish government said it feared doing so might breach UK subsidy control laws, and the contract was put out to competitive tender.
Thirteen firms expressed an interest in the SVRP, with Fergusonâs making it onto a shortlist of six bidders.

Inverclydeâs Labour MP Martin McCluskey accused the Scottish government of âprioritising opportunities in Poland rather than Port Glasgowâ.
âFergusonâs successfully built vessels similar to these in the past and could again,â he said
âThe contract award took no consideration of the social impact of not awarding these contracts to Port Glasgow â the same mistake cannot be made in the next round of the small vessels replacement programme.
âThe workers in the yard deserve a break after years of being let down by the Scottish government and poor management.â
Scottish Conservative transport spokesperson Sue Webber said: âIt should be a given that a nationalised shipyard wins a Scottish government contract.
âYet itâs a measure of how badly the SNP have mismanaged Fergusonâs that ferries which should be built on the west coast of Scotland are instead to be made in eastern Europe.â
Dual-fuel ferries
Fergusonâs employs about 300 workers and apprentices in an area of high deprivation and has built six out of the 10 largest ships currently in CalMacâs fleet.
But the firm has struggled with construction of MV Glen Sannox and MV Glen Rosa, the first dual-fuel ferries built in the UK capable of running on liquefied natural gas.
Design challenges, disputes over rising costs and an acrimonious stand-off with the customer CMAL saw the firm return to administration in 2019 when it was nationalised, with problems continuing under public ownership.
The recently-delivered Glen Sannox has been praised by ferry users on the Arran route but the ship was unexpectedly taken out of service on Friday after a hairline crack in a weld on its hull led to a small leak.
The fault was quickly repaired and the ship resumed sailings on Sunday.
The second ship MV Glen Rosa is in the final stages of construction with another delay expected when the next delivery update is given shortly.
The shipyard is still pursuing alternative business opportunities, including defence sub-contracting work from BAE Systems and private sector work.