Ferguson Marine signs deal to build Navy warship sections at Port Glasgow

Ferguson Marine signs deal to build Navy warship sections at Port Glasgow

BBC Scotland transport correspondent David Henderson reported that the Ferguson Marine shipyard has secured a contract to construct three sections of a Royal Navy warship currently being built on the River Clyde. The shipyard, which is owned by the Scottish government, was recently warned by a committee of MSPs that it needed urgent investment to ensure its survival. The details of the new contract, including its value and completion timeline, are still unclear.

Prior to securing this contract, the Port Glasgow yard had only one remaining contract on its books, which involved completing the MV Glen Rosa CalMac ferry. With the impending completion of this vessel, concerns were mounting about the future workload for the yard and its 300 employees. The new agreement with defense giant BAE Systems to fabricate three sections of HMS Birmingham, a Type 26 frigate, at the Port Glasgow site is a welcomed development.

The recent missed opportunity for a government-funded order for seven small CalMac ferries, which were awarded to a Polish shipyard instead, added to the challenges faced by the Ferguson Marine yard. Members of Holyrood’s public audit committee expressed concerns about leadership and governance issues, as well as delays and cost overruns in the construction of two CalMac ferries. They emphasized the need for investment to enhance competitiveness and improve oversight to ensure the yard’s recovery.

Last summer, the Scottish government pledged up to £14.2m in investment for the yard over a two-year period. However, the extent to which this investment has been delivered remains unclear. The government took over the yard after contracts for the dual-fuel ships Glen Sannox and Glen Rosa encountered difficulties, leading to disputes with the ferries procurement body CMAL. Delays and design challenges persisted under public ownership, culminating in a total cost of approximately £460m for both ships, significantly higher than the original contract price of £97m

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