Four ferry building contracts to be awarded to Ferguson Marine shipyard

State-owned shipyard Ferguson Marine is to be handed the contracts to build four new vessels in a move that ministers hope will help to save the business.

Deputy First Minister Kate Forbes said the yard required a “clear and credible pipeline” of work, which was why the decision had been taken to make a direct award.

It comes after Ferguson Marine last year missed out on winning the contracts through a competitive tender process.

The yard will build two ferries as part of the government’s small vessel replacement programme, as well as replace a research vessel and a marine protection vessel.

It is expected this will provide the yard with five years’ work, though Forbes added it had more capacity should other contracts be won in that time.

Announcing the move in the chamber on Tuesday, Forbes added the four vessels were “not the limit of our ambition” and the yard “must be able to win and deliver work” in a competitive environment.

She added: “The proposed programme would provide a stable baseline, allowing the yard to plan its workforce, strengthen its supply chain and invest in improved ways of working. It would also provide the yard with an opportunity to establish itself as a credible, competitive shipbuilder by demonstrating consistent delivery, controlling costs and delivering vessels that perform in service.”

There has been hesitance from government previously to make a direct award due to procurement rules and Forbes said the proposal was subject to “detailed legal, commercial and subsidy control assessments”.

Ministers expect the yard to be returned to the private sector in the future. It was nationalised in 2019 following ongoing issues relating to the construction of two ferries.

The yard has become synonymous with the long-delayed and overbudget Glen Sannox, which launched last year, and Glen Rosa, which remains under construction. Both ferries were supposed to be delivered in 2018.

Graeme Thomson, CEO of Ferguson Marine, welcomed the award. He said: “This is a watershed moment for our shipyard and a significant opportunity for us to retain our Clydebuilt workforce.

“By unlocking vital infrastructure and equipment upgrades, this direct award is the catalyst for Ferguson Marine to become a world-class, digitally enabled shipbuilder, capable of competing on a global stage.”

Scottish Conservative transport spokesperson Sue Webber said the award was “good news” for the workforce and wider industry.

But she added: “However, given the disasters the SNP has presided over in the building of the Glen Rosa and Glen Sannox, many Scots will have serious concerns about these new vessels being delivered on time and on budget.”

Meanwhile in an earlier announcement, transport secretary Fiona Hyslop confirmed the nationalisation of the Ardrossan Harbour.

The deal is expected to be finalised this month and will allow for extensive redevelopment of the harbour, necessary because new CalMac ferries ordered for the Arran route are too big to berth safely.

The transport secretary said: “We want Ardrossan to be the primary mainland port for CalMac ferry services to Arran. That is why I am pleased to confirm that the negotiations and wider legal agreements for purchase of Ardrossan harbour have now been successfully concluded. CMAL will soon sign the necessary documents to complete the acquisition of the harbour this month.

“This purchase will secure the port in public ownership and allow for full focus to move to redevelopment of the facility.”

Hyslop also announced that another vessel – to replace the 37-year-old MV Lord of the Isles – will go out to competitive tender.

That ferry, one of Calmac’s oldest, sails on the Mallaig/Oban to Lochboisdale route.