Scottish Government Plans Four-Ship Construction Contracts to Support Ferguson Marine Shipyard
The Scottish Government is moving forward with a plan to award four shipbuilding contracts to Ferguson Marine, aiming to support the financially troubled shipyard and secure the future of shipbuilding operations in Glasgow.
The shipyard entered administration before being taken over by the Scottish Government in 2019 in an effort to protect jobs and preserve the country’s historic maritime manufacturing sector. The proposed contracts are viewed as a key step toward stabilizing the yard’s operations and eventually transitioning the shipbuilder back to private ownership.
Speaking during a presentation to parliament on March 3, Kate Forbes described the plan as a major milestone for the shipyard’s recovery.
“This is a watershed moment,” Forbes said, noting that the proposed program,subject to due diligence to assess viability,would secure a pipeline of shipbuilding work while allowing the yard to continue modernization efforts and compete for new commercial contracts in the global maritime market.
Under the proposal, the government would directly award four construction contracts without competitive bidding. The contracts include building replacements for the research vessel RV Scotia and the fisheries protection vessel FPV Minna, both originally constructed in Glasgow in 1998 and 2003.
In addition, the shipyard would receive contracts for two new ferries as part of the government’s Small Vessel Replacement Program, further strengthening the local shipbuilding pipeline.
The government stated that the contracts would remain subject to financial and operational due diligence to ensure project viability. If approved, the four shipbuilding orders would occupy most of the yard’s production capacity for the next five years, giving the new management team time to pursue additional commercial shipbuilding opportunities.
The program would also unlock the remaining portion of a £14.2 million investment previously committed by the Scottish Government to upgrade Ferguson Marine’s infrastructure over the next two years. Current interim investments are focused on essential repairs, safety improvements, and equipment upgrades aimed at stabilizing operations and completing the long-delayed ferry MV Glen Rosa.
Ferguson Marine originally secured a contract in 2015 to build two LNG-powered ferries, which were considered advanced vessels for the regional ferry fleet. The ships were initially scheduled for delivery in 2018 at a total cost of £97 million.
However, the project experienced repeated delays and rising construction costs. The first vessel, MV Glen Sannox, has been in service for about a year but has reportedly faced additional technical challenges. The second ferry, Glen Rosa, is now expected to be delivered in the fourth quarter of 2026, with reports suggesting the total project cost could reach nearly five times the original budget.
Despite concerns over delays and cost overruns, Scottish leaders continue to emphasize the importance of maintaining a strong shipbuilding industry in Glasgow. The Ferguson Marine shipyard, founded in 1903, has historically produced ferries, naval auxiliary vessels, and specialized ships for maritime operators.
Government officials say a new management team has introduced stronger commercial discipline, improved accountability, and enhanced oversight procedures to ensure future shipbuilding projects are delivered more effectively.
The management team is now preparing a revised business plan that will be reviewed by the Scottish Government. If approved, the administration intends to move forward with the shipbuilding contracts under the Subsidy Control Act, supporting long-term stability for the yard and the wider maritime manufacturing sector.
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