Doubt on whether cost-ineffective ferry will get £35m to be completed

The Herald Scotland

15-05-2025

Glen Rosa was expected to be taking passengers in September - but now state-owned Ferguson Marine has admitted the full sign off and deliver will not be till the summer of next year - between April and July.
Meanwhile the total forecast costs has increased by £22.5m with a further 'risk contingency' of £12.5m.
Last year wellbeing economy secretary Màiri McAllan said nationalised Ferguson Marine considered the latest delays and costs forecasts - which had Glen Rosa ready to use in September - was the "final position" after the firing of chief executive David Tydeman.
The latest bombshell to hit the project came after the nationalised Inverclyde firm completed a revised build plan for the already wildly delayed and over-budget ferry.
Now The Herald has been told that the extra costs are not guaranteed.
As the deputy minister Kate Forbes communicated her "disappointment and frustration" to the board about the further delays and costs rise, it was confirmed that the additional funding "will need to be considered in accordance with a stringent due diligence process".
This is expected to be a thorough examination of the business and investment, before further project financing is given and would assess the technical, legal, financial, and operational risks and opportunities associated with it.
Glen Rosa (Image: Newsquest) It comes amidst growing concern about the rising costs of the two ferries at the centre of the debacle.
Glen Rosa and its sister ship Glen Sannox were both due to be online within the first seven months of 2018, to serve Arran. They were the first liquefied natural gas (LNG) dual-fuel ships ever built in the UK, capable of switching between LNG and marine diesel.
In the midst of the delays and soaring costs, Ferguson Marine, under the control of tycoon Jim McColl, fell into administration and was nationalised at the end of 2019 with state-owned ferry and port-owning agency Caledonian Maritime Assets Ltd and the yard's management blaming each other.
Delays to the Glen Rosa are now heading towards the eight year mark. Glen Sannox was launched in January, seven years late.
The costs of both vessels are expected to more than quadruple the original £97m contract.
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One ferry user group official said that the Scottish Government had already "paid their way into a corner" and that he would be "very surprised" if they decided to "pull the plug" now.
"I can fully understand that from a general public perspective, the costs of these ferries has risen to such an extent that you do wonder what is next," he said. "Every time we are told that is the last of it something else pops up.
"Quite why there is even a question over whether the extra costs will be paid is baffling. It has gone past the point where it is good money after bad and islanders just want to see these ships doing what they are supposed to do."
Almost precisely two years ago, then economy secretary Neil Gray sanctioned funding the construction Glen Rosa despite it being cheaper to build a new ship elsewhere.
He admitted at that point that finishing the ship did not represent value for money in "narrow" terms.
He issued a rarely-used ministerial direction to overrule the financial test.
He said completing the vessel at the nationalised yard was the fastest way of delivering more ferry capacity.
Pulling the plug would also threaten jobs and the wider economy, he added.
And he admitted then that he could not rule out further increases in costs for the two ferries because the shipyard was facing inflationary pressures and was still discovering "design gaps", some of which dated back many years.
Katy Clark (Image: Scottish Parliament TV) Katy Clark, Scottish Labour's spokesman for community safety said the "eyewatering" extra costs "highlight the Scottish Government's incompetence and repeated poor decision making".
The West of Scotland MSP said: "At this stage, we need the Glen Rosa finished and in operation as soon as possible, and the work at Ardrossan Harbour commenced so that the Ardrossan to Brodick service can operate as the Arran service was envisaged. This is essential for islanders, Arran's economy, and visitors."
Work on both Glen Sannox and Glen Rosa began in early 2016, but a plan to build them simultaneously was abandoned later that year.
As attention focused on Glen Sannox, the second ship - then known only as Hull 802 - remained part-finished.
Glen Sannox was launched by Nicola Sturgeon in November 2017 in a ceremony also attended by then Transport Minister Humza Yousaf.
The 3,000 tonne MV Glen Rosa was 'launched' from the Inverclyde slipway a year ago in a far more finished state than its identical sister ship MV Glen Sannox.
Crowds cheered as the vessel reached the water as the heaviest to be launched at the Clyde yard.
While there was much "fitting out" work still to be done, including specialist cryogenic pipework for its liquefied natural gas (LNG) engines, it was hoped the 335ft ship could be delivered by the end of September this year.
Ms Forbes admitted communities which depend on the island ferries service "deserve better".
'I have instructed that a new weekly review group be established, chaired by Ferguson Marine and comprising the yard and our independent technical advisers [state-owned ferry and port owners] CMAL, to scrutinise the vessel's delivery plan and ensure it is realistic, efficient and cost-effective. This is now operating alongside existing project meetings which continue to oversee key milestones, cost forecasts and operational performance.'
'It is imperative that there is no further delay or additional cost to deliver the vessel beyond this point. Ferguson Marine's leadership must take immediate and sustained action to restore trust, enforce delivery discipline, and bring this project under control. I also hold the board to its word that every opportunity to bring this cost down will be identified.'