Ferguson Marine, a nationalized shipyard in Port Glasgow, Scotland, is now one of six companies selected to bid for an important contract. This contract involves building seven small ferries for CalMac, Scotland’s ferry operator. If successful, the order could be worth up to £175 million, which would help the shipyard move forward after years of difficulties.

A Big Step Forward for Ferguson Marine

Ferguson Marine has had a tough time in recent years. They faced several challenges when trying to build two larger, more complicated ferries for CalMac. However, this new project offers hope for the shipyard’s future. The seven small vessels they are bidding for are all-electric, making them more environmentally friendly. Ferguson Marine is eager to win this contract, saying it would be a crucial part of their future plans.

In a statement, a spokesperson from Ferguson Marine said, “This is excellent news and a testament to the FMPG team who prepared a strong submission for the first stage. We will focus on developing a solid bid for the small vessels for CMAL, something we are well-equipped to deliver.”

The contract is part of the Small Vessels Replacement Programme (SVRP) and will be awarded in March next year. If Ferguson Marine wins, it could provide continuous work for the shipyard, which is especially important as they finish the construction of two much larger ships, the Glen Sannox and Glen Rosa.

The Road to Recovery

Ferguson Marine has been in the spotlight for the wrong reasons over the past few years. Delays and cost overruns plagued their construction of the two CalMac ferries. Originally, these two vessels were supposed to be completed six years ago, but various design issues and disputes with CMAL (Caledonian Maritime Assets Limited) led to significant delays. As a result, the shipyard went into administration in 2019 before it was nationalized by the Scottish government.

The completion of the Glen Sannox and Glen Rosa is still dragging on, with the Glen Sannox currently undergoing further sea trials. Despite a delay caused by an issue with one of the anchors, the shipyard is working hard to fix the problems. Meanwhile, work on Glen Rosa continues, with the ship scheduled for delivery in September next year.

However, the problems of the past haven’t stopped Ferguson Marine from looking forward. They hope to secure more contracts in the future, including sub-contracting work on the Royal Navy’s Type 26 frigate programme. But for now, all eyes are on the small ferries contract.

A Competitive Bidding Process

While Ferguson Marine has made it through the first round, they still face tough competition from other shipyards. In total, thirteen companies expressed interest in the contract, but only six were selected to move forward. The other five companies include:

Asenav (Chile)
Cammell Laird (England)
Cemre Marin Endustri (Turkey)
Damen Offshore and Specialised Vessels (International)
Remontowa Shipbuilding (Poland)

These shipyards come from all over the world, and some have lower overhead costs, which could make it difficult for Ferguson Marine to compete. Former Ferguson Marine chief executive, David Tydeman, pointed out that these larger shipyards often have lower management costs, which can give them an advantage in the bidding process.

Despite this, there is still hope that the Scottish government and CMAL will see the value of awarding the contract to a local shipyard, even if it comes with a slightly higher price tag. Some politicians and unions have even called for the contract to be directly awarded to Ferguson Marine to protect jobs. However, the Scottish government has said that doing so could lead to legal challenges, which would only delay the process further.

What Winning the Contract Means

If Ferguson Marine wins the contract, it would be a major victory for the shipyard and its workers. The shipyard currently employs around 300 people, including 50 apprentices. However, work is starting to run out as they complete the two larger ferries. Winning the contract for the seven small ferries would secure jobs and provide a steady stream of work for the shipyard over the next few years.

The new ferries are expected to be 50 meters long, similar to three small ferries that Ferguson Marine successfully built in the past. These ferries were delivered on time and within budget, which gives the shipyard confidence that they can meet the requirements of this new contract as well.

In addition to securing jobs, winning the contract would also help the shipyard improve its efficiency. The Scottish government has invested £14 million into Ferguson Marine to help raise productivity. This investment will be crucial as the shipyard moves forward, not only with the small ferries but also with potential future projects.

The Future of Scottish Shipbuilding

Ferguson Marine is the last remaining commercial shipyard on the lower Clyde, an area that was once known for its world-class shipbuilding industry. The only other shipyards left on the Clyde are BAE Systems yards in Glasgow, which are focused on building ships for the Royal Navy. For Ferguson Marine, winning this contract is about more than just securing work—it’s about preserving a proud tradition of shipbuilding in Scotland.

While the shipyard has faced many challenges, this new opportunity could be the fresh start they need. If they win the contract, it would help put the past behind them and set them on a new course for the future.

A Long Road Ahead

Ferguson Marine’s journey has been filled with ups and downs, but the shipyard remains determined to succeed. Whether or not they win the contract for the small ferries will be decided in March, but for now, the shipyard is preparing its bid and hoping for the best.

The competition is tough, but Ferguson Marine has the experience, the people, and the skills to deliver. Winning the contract could be the key to unlocking a brighter future for the shipyard and its workers, and perhaps even the entire Scottish shipbuilding industry.