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Cost to Complete Scottish Ferries Experts Warn Could Hit £400m

21st March 2022
Newbuilds for CalMac, the Glen Sannox one of the dual-fuel ferries at Ferguson Marine on the Clyde. The construction cost to complete the pair at the Scottish state-owned shipyard could be as high as £400m. Newbuilds for CalMac, the Glen Sannox one of the dual-fuel ferries at Ferguson Marine on the Clyde. The construction cost to complete the pair at the Scottish state-owned shipyard could be as high as £400m. Credit: SundayPostUK-facebook

Construction costs to complete two (CalMac) ferries at the Scottish state-owned Ferguson Marine shipyard could be as high as £400 million, that's according to a former Scottish Government shipbuilding adviser.

As the SundayPost reports, ex-commodore Luke van Beek made the eye-watering estimate ahead of publication of a report by public finance analysts Audit Scotland expected to be critical of the failure to deliver two new vessels to serve Scotland’s islands on time and at cost.

Van Beek, who has given evidence to the watchdog, said the original £97m price for two dual-fuel ferries was unrealistic. The latest cost estimate will be included in a report to be given to MSPs by the end of the month and Audit Scotland’s separate examination of problems delivering the ferries will be published on Wednesday.

The Scottish Government nationalised Ferguson’s in 2019 after former owner Jim McColl could not persuade ministers to pay more than the £97m contract price. Van Beek said: “I assume the current estimate of cost is somewhere in the £350m to £400m bracket. The cost of completing them is likely to exceed the cost of starting again, particularly if they were to start again on a simpler design better suited to the ferry routes.

“The contract was let for £97m and I don’t think that was a realistic price. I think a more realistic price was £150m, but even at £150m it’s just ridiculous. It is now evident this dual-fuel design and size of the ships was all wrong for what was required. Some people have an awful lot to answer for but the Scottish Government doesn’t want to be blamed. I believe there should be a public inquiry.”

MV Glen Sannox was due to start serving Arran in 2018 but has been delayed to summer this year and a second vessel – Hull 802 – is due to start operating by mid-2023.

For further reading on the shipyard ferry fiasco, click here. 

Published in Shipyards
Jehan Ashmore

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Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Shipyards

Afloat will be focusing on news and developments of shipyards with newbuilds taking shape on either slipways and building halls.

The common practice of shipbuilding using modular construction, requires several yards make specific block sections that are towed to a single designated yard and joined together to complete the ship before been launched or floated out.

In addition, outfitting quays is where internal work on electrical and passenger facilities is installed (or upgraded if the ship is already in service). This work may involve newbuilds towed to another specialist yard, before the newbuild is completed as a new ship or of the same class, designed from the shipyard 'in-house' or from a naval architect consultancy. Shipyards also carry out repair and maintenance, overhaul, refit, survey, and conversion, for example, the addition or removal of cabins within a superstructure. All this requires ships to enter graving /dry-docks or floating drydocks, to enable access to the entire vessel out of the water.

Asides from shipbuilding, marine engineering projects such as offshore installations take place and others have diversified in the construction of offshore renewable projects, from wind-turbines and related tower structures. When ships are decommissioned and need to be disposed of, some yards have recycling facilities to segregate materials, though other vessels are run ashore, i.e. 'beached' and broken up there on site. The scrapped metal can be sold and made into other items.