Vessel procurement and bidding The start of the vessel procurement process was publicly announced on 15 October 2014 by the
Transport Minister Keith Brown. invited shipbuilders to demonstrate their capability for detailed design, construction, testing, and delivery of two 100 metres long
ROPAX ferries. The questionnaire emphasised the requirement for Bank Refund Guarantee bonds before work started, and requested evidence from a bank confirming its willingness to provide these guarantees. Following discussion with CMAL, FMEL said on 9 December that guarantees from its parent company Clyde Blowers Capital (CBC) would be inappropriate, so it intended to provide Bank Guarantees and would "endeavour to provide Guarantees to levels that provide the security you require." They had won the contract for the dual fuel
Samsø ferry in 2013, The ITT, issued on 10 December 2014, included a 135-page technical schedule, mostly derived from a much longer "Specification of Operational and Technical Requirements" (SoTR) for the vessels drawn up by CalMac. It said they were to be dual-fuel LNG engined. Under the industry standard
BIMCO design and build New Build Contract, shipyards bid a fixed price to take responsibility for designing and building ships to meet the specification, and the full risk for this remains with the builder throughout the construction period. Bidders were required to accept the terms of the draft contract included with the ITT, or provide comments and/or propose amendments to this draft. The ITT required refund guarantees on behalf of the Builder by "a first class international bank". FMEL wrote that they had no comment to make "at this time". When FMEL told local MSP
Stuart McMillan that they could not provide these guarantees, he wrote to the deputy first minister
John Swinney. In early February 2015 transport minister
Derek Mackay responded; "While CMAL's board in line with standard industry practice has a preference for refund guarantees it has on occasion taken alternative approaches to ensure that ship yards, including Ferguson under its previous owners, were not excluded from bidding for those government contracts." This letter was taken by McColl as suggesting that "alternative approaches were acceptable. On this basis FMEL proceeded with the tender." CMAL say they had "no awareness of, or involvement in, these exchanges."
Shortlisted tenders Tenders were submitted by 31 March 2015, then evaluated on cost and quality by CMAL with assistance of a consultant naval architect. CalMac gave technical input. The FMEL design was heavy, with large engines, and the two ship contracts totalled £109.8M. Their bid briefly mentioned a lighter design they had developed in the "initial stages" of the project before going on to develop the heavier ship in order to give greater "comfort" on their ability to meet the deadweight (cargo capacity) requirement. On 17 May CMAL's evaluators asked for more details of this earlier design, enabling FMEL to price each ship contract at £50.25M, eventually negotiated down to £48.5M each, a total of £97M. The assessment placed the Remontowa bid second, MacKay said it was for dual-fuel ferries, "allowing them to use cleaner fuel and future-proofing them for the advent of tighter regulations around sulphur emissions." Erik Østergaard, Chair of CMAL, said "Subject to agreement on all points, we hope to be in a position to finalise the award of the contract later in September."
Role of CMAL CMAL understood that government ministers wanted the ferries built in Scotland by FMEL, but on 25 September the CMAL board considered there were "too many risks involved around the refund guarantee matter which are still to be resolved and to that end the Board are not in a position to award the contract to FMEL at this stage." Next day, Østergaard emailed TS that CMAL could not recommend the level of unsecured risk, and proposed rejecting the deal; putting the project on hold, or "re-opening the contract negotiations with Remontowa (with whom we have a track record of doing business) or even a second yard in parallel while continuing negotiations with FMEL." Initially FMEL proposed an unusually small final milestone instalment, reducing their incentive to complete, but on 29 September they increased it to 25%, which with insurance backed guarantee coverage at 25% left CMAL at risk for around half of payments made pre-delivery. CMAL produced a paper setting out the risks. On 9 October TS confirmed that Scottish ministers had noted and accepted the risks and, as CMAL's sole shareholder, approved award of the contracts. Ministers approved £10.6m loan funding to CMAL, with special provisions to protect against the risks and repayments only due after completed ferries were in service. MacKay and Swinney signed off on the contract, and on 16 October contracts were signed between CMAL and FMEL, In its 2022 report,
Audit Scotland said the Builder’s Refund Guarantee (BRG) is "an integral part of shipbuilding contract and is the main source of financial security for a ship buyer", giving the shipbuilder "a significant incentive to build a quality product as the buyer can cancel the contract and claim a full refund of all payments if the ship does not meet its required specification." The contract "places full responsibility and risk for the design and build of the vessels with the shipbuilder and does not allow the buyer to intervene in the running of the project." The lack of a full refund guarantee transferred some of the risk from FMEL to CMAL, so "the contract was not effective when problems emerged."
Catriona occupied the slipway until its launch on 11 December. A workshop bay was demolished, and the old brick office building was demolished before work on the new large prefabrication shed from May to August 2016. New offices were then built nearer the main road. CMAL reported that this redevelopment reduced the available space and hampered concurrent work on both vessels, but FMEL later attributed the delays to CMAL. FMEL agreed a contract in May 2016 with Vera Navis of Portugal as their detail design partner, to carry out production engineering of the ships. Problems increased as FMEL did construction work "at risk", without approval of drawings by CMAL, and without regulation approvals required by the
classification society (
Lloyd's Register) and the
Flag Authority (
MCA). Delays built up as incorrect work had to be re-done. TS informed Scottish ministers that the vessels were likely to be late, CMAL said it had cash flow problems due to contract problems and was assisted by accelerated payments and a loan. but was substantially incomplete at the time.
Initial delivery date FMEL scheduled a May 2018 delivery date, but delayed providing CMAL with detailed drawings and plans before starting construction, causing delays when work had to be redone. In July 2017, FMEL said they were not responsible, claiming £17.5 million for additional costs, CMAL argued that the claim was not valid, but the amount claimed was increased. CMAL took legal advice, and completely rejected the claim in March 2019, but FMEL did not contest this in court. The Scottish Government commissioned an independent view in May 2019, and concluded in June 2019 that there was no legal basis for CMAL to pay more than the £97 million fixed price for the contract. In August 2019, FMEL went into administration. By then, FMEL had been paid £83.25 million in contract payments, and £45 million in loan payments from the Scottish Government. A commercial transaction nationalising the shipyard was completed on 2 December 2019, making it a new business named Ferguson Marine (Port Glasgow) Ltd., with marine engineer Tim Hair appointed as turnaround director. A report issued on 9 December 2019 estimated that, with good progress,
Glen Sannox would be handed over to
Caledonian Maritime Assets Ltd (CMAL) in the last quarter of 2021, and that completing the two ferries was likely to increase the total cost to over £207 million. In April 2020, Ferguson Marine (FMPG) contracted with International Contract Engineering, a marine design consultant, to revise the design and outfitting of
Glen Sannox in advance of her eventual delivery. During the
COVID-19 lockdown in 2020, the shipyard was closed or subject to restricted working for almost six months.
Dry dock On 10 August 2020, tugs moved
Glen Sannox to the Garvel dry dock in Greenock for remedial work including replacement of the bulbous bow, paintwork repair and removal of marine growth. After additional work, the ship returned to the Ferguson Marine shipyard in Port Glasgow on 9 September 2020.
Fuel system In October 2022, FMPG announced that
Glen Sannox would initially operate only on marine gas oil, as vacuum sensors required for the LNG system were not available.
Additional delays Further delays to both ferries and increasing costs of £250 million, subsequently rising to £340 million by September 2022, have resulted in controversy surrounding the contract and the lack of transparency in the decision-making process. The Scottish Government announced that key documents relating to the decision-making process had gone missing. In September 2023, a failed safety audit meant that MV
Glen Sannox was further delayed: among other issues, the
Maritime and Coastguard Agency (MCA) insisted on the installation of additional staircases as a condition of approving a safety audit. The work meant that planned sea trials of the
Glen Sannox were delayed until the first quarter of 2024, raising doubts over whether the ship will be available for the start of the 2024 summer season. Meeting MCA safety regulations ultimately meant that the passenger capacity of both ferries had to be cut from a planned 1,000 to 852. then moved to Inchgreen Quay in Greenock, leaving Newark Quay free for the launch of on 9 April 2024. In June 2024 a delivery date of 19 August 2024 was announced, In November,
Lloyd's Register and the MCA issued regulatory certificates confirming that the ship met all their requirements. The final documentation was signed, then next day the vessel was formally handed over to CMAL on 21 November 2024. Success of crew familiarisation trials by CalMac was announced on 20 December, with the ship beginning its first sailing on 12 January 2025, from Troon to Brodick and return, preceding the beginning of the full timetabled service on 13 January 2025. ==LNG and port infrastructure==