Main Menu

Completion likely in 2023

Hyslop confirms delays to ferries contract

Glen Sannox ferry

Glen Sannox has been repaired in dry dock

Economy Secretary Fiona Hyslop has confirmed that the ferries being built on the Clyde will not be complete for almost three years.

In an update to MSPs she said delivery of the Glen Sannox ferry is now planned for April to June 2022 and the 802 ferry between December 2022 and February 2023.

Daily Business reported last week that the contract tender for work on the ferries stated that it last for three years.

The lockdown is expected to lead to costs for Ferguson of £3.3 million. As exceptional costs, these will be met by the Scottish Government as owners of the business.

The total additional estimated cost for the project remains unchanged at between £94.8m and £98.8m.

A workforce liaison committee is being established to improve workforce engagement.

It was announced last week that the Glen Sannox, which was taken to dry dock earlier this month for remedial work, has had its incorrectly manufactured bulbous bow replaced and the starboard door is being installed.

The hull’s paintwork is said to be in better condition than expected.

In line with government guidelines, around 50% of the workforce have now returned, with others working from home where possible

Follow Daily Business on LinkedIn

Ms Hyslop said: “This has been a hugely challenging year for the business. In line with much economic activity across Europe the COVID-19 pandemic has essentially closed the yard for six months. Despite that interruption to business much has been achieved.

“While no work was possible at the yard during lockdown, extensive work was being done from employees’ homes – notably on the detailed design of the ferries. I would like to thank the workforce for all their continuing hard work, and efforts to get the yard back to work.

Fiona Hyslop speaking

Fiona Hyslop: ‘we can look to the future with confidence’ (pic: Terry Murden)

“The Turnaround Director has significantly strengthened the senior management team. I have appointed a new board to help drive the business forward. Trades Union representatives have direct access to the board, and a workers liaison committee is being set up.

“Vessel design has progressed significantly and the dry dock inspection of 801 demonstrated the hull is sound. Work to complete the ferries can now proceed at full speed. I believe we can look to the future with confidence.”

The £3.3m costs as a result of the COVID-19 lockdown comprise £1.6m for wages and £1.7m for facilities.

Follow Daily Business on Facebook

The estimated timings for delivery of the two ferries as of the Turnaround Director’s report of December 2019 was October to December 2021 for 801 and July to October 2022 for 802. The total cost of building the ferries remains at £110.3m to £114.3m.

Due to payments still being due under the original contract, the additional costs are estimated between £94.8m and £98.8m.

There are some 350 employees at the yard including permanent, temporary and contract workers. This includes 26 apprentices. The yard also supports an estimated 350 jobs in the rest of Scotland.

Scottish Conservative transport spokesperson, Graham Simpson has accused the SNP Government of secretly planning to nationalise the yard when it agreed a loan.

“Today we got no answers about claims that the SNP planned to nationalise Ferguson Marine all along and what former Finance Secretary Derek Mackay knew when he made these loans.

“There are serious accusations here about the misuse of public money. Derek Mackay must come back to parliament and reveal what he knew, and if he had the support of Nicola Sturgeon and the SNP cabinet.

“The SNP’s repeated failures have been clouded in secrecy for far too long, and we still don’t know how much this scandal will ultimately cost Scottish people.”



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.