'Detailed review' of over-budget Glen Rosa ferry under way as control account managers appointed

The beleaguered state-owned shipyard responsible for two significantly delayed and overbudget CalMac ferries has said it has been undertaking a “detailed review” of its outstanding work to deliver the second vessel.

Ferguson Marine said the review was designed to ensure that lessons learned from its work on the Glen Sannox ferry was “fully embedded” into its delivery planning for the Glen Rosa, describing the work as “extensive”.

In an update to MSPs, the firm said the review was focused on strengthening the robustness of its internal programme and operational controls, but required a “further stage of refinement”.

There has been no change to the timescale for the completion of the dual fuel vessel, which is earmarked for the Arran route. It is due to enter service this September, more than seven years late.

Work the on Glen Rosa was supposed to have been completed in July 2018. Picture: John Devlin | John Devlin

In the update to Holyrood’s net zero, energy and transport committee on Monday, David Dishon, Ferguson Marine’s chief financial officer, said it had made “significant progress” in recent months, including “enhancements to planning processes, co-ordination across teams, and alignment with commissioning milestones”.

He said: “The review has also resulted in a more efficient sequencing of work, stronger resource allocation, and improved visibility of technical and operational interdependencies.

“To further reinforce this work, we have appointed control account managers across the vessel to provide targeted oversight and early intervention where needed. We are also working closely with our technical partners, including external design specialists, to ensure continued improvement in delivery and execution.”

Mr Dishon said over the next month, the Inverclyde firm intended to progress a further stage of review and assurance activity to ensure the Glen Rosa operational plan has been “fully optimised from the perspective of costs and handover date”.

Work on the two ferries at Ferguson Marine in Port Glasgow has been dogged by problems and delays. Picture: John Devlin | John Devlin

Both the Glen Rosa and Glen Sannox have dogged Ferguson Marine and Scottish ministers for years, with the overall cost approaching four times the initial figure of £97 million.

The timescale for the completion of 102-metre roll-on, roll-off Glen Rosa has been extended several times in recent years. In summer 2023, it was pushed back from the end of 2024 to May 2025, before being extended for a further four months in February last year. The cost of that work also crept up from £110m in September 2023 to around £150m in February 2024.

Mr Dishon’s update noted that in terms of physical progress on Glen Rosa, various milestones had been reached, including the installation of mezzanine car decks, initial insulation inspections, and the positioning of switchboards. A new manager has also been appointed to oversee pipe shop operations, with work underway on shaft line setup and gap sag measurements.

Mr Dishon said; “Additionally, the commissioning-based schedule is now being driven by focused short-term planning and daily co-ordination meetings, aimed at securing timely progress across all key stages.”

Scottish Conservative shadow transport secretary Sue Webber said: “SNP ministers have presided over utter chaos since nationalising Ferguson Marine, so it’s entirely predictable that we still don’t know when this lifeline vessel will enter service.

“Islanders and local businesses deserve answers, but SNP ministers refuse to come clean and provide them with the certainty they so desperately need. That’s totally unacceptable. Hundreds of millions of pounds of taxpayers’ money has been squandered and years have been wasted because of SNP ferry delays, but they refuse to own their own mistakes, using senior staff at Ferguson as scapegoats.”

The Glen Sannox entered service in January - six-and-a-half years after it was supposed to - but was withdrawn for two days in March due to a problem with a weld seam in its hull.

Mr Dishon’s letter said the Glen Sannox was “performing very well” and demonstrated the “enormous difference” a modern, reliable ship can have on the resilience of CalMac’s fleet.

Describing it as a “great Scottish engineering success”, he added: “We are delighted by the response from passengers who have had the pleasure of sailing on her. The vessel is the first in her class, a real Clyde-built industrial achievement, and a testament to the skill and dedication of all who had the privilege of working on her.

“Our people have worked tirelessly to deliver this exceptional vessel, and Glen Sannox serves as a reminder of what this yard is capable of producing. We look forward to seeing her serve our important island communities for years to come.”

In February, John Petticrew, the interim chief executive of Ferguson Marine, admitted to MSPs there was a risk of further delays to the ferry, which should have been completed in July 2018. That month, The Scotsman revealed how 16 major parts had been taken from the Glen Rosa to complete its sister ship, including a starter motor and various pumps.

Earlier this month, the Port Glasgow shipyard was dealt a severe blow after losing out to a Polish competitor on a contract to build seven CalMac electric ferries, raising concerns over its long-term viability.

However, Deputy First Minister Kate Forbes said if the first phase of the small vessel replacement programme - responsible for building ferries capable of servicing short routes on the west coast of Scotland - had been awarded directly to Ferguson Marine, it would have introduced “substantial risk” and the prospect of court action.

In his update to MSPs, Mr Dishon said “extensive work” had gone into delivering Ferguson Marine’s updated business strategy, laying out a decade-long vision and providing certainty on “the type of work the yard is not only well positioned to bid for, but has a good chance of winning, backed by empirical evidence of the opportunities available in the market”.

Audit Scotland in December called for an urgent review of how troubled Scottish Government-owned shipyard Ferguson Marine was run after it paid out tens of thousands of pounds more than it should on staffing contracts and pay-offs.

The public spending watchdog said two members of staff had been paid more than the £95,000 public sector limit when leaving the yard, which had not been checked with ministers.

In a separate update to the Holyrood committee, which is due to meet on Tuesday, Caledonian Maritime Assets Ltd said there were no changes to the timescales for delivery of four vessels being built in Turkey for CalMac.