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Scottish Government Loses Ferry Court Battle Over £5m Ferguson Shipyard Insurance Payout

31st May 2021
The Scottish Government has been told it will have to pay £5 million to insurers over the Clydeside shipyard of Ferguson Marine ferries fiasco. This involved a pair of ferries for CalMac with Glen Sannox (above) for the Arran route and a sister for Skye-Harris-North Uist services. The Scottish Government has been told it will have to pay £5 million to insurers over the Clydeside shipyard of Ferguson Marine ferries fiasco. This involved a pair of ferries for CalMac with Glen Sannox (above) for the Arran route and a sister for Skye-Harris-North Uist services. Credit: The Scotsman-twitter

Scottish Ministers have lost a case at the Court of Session brought by HCC International Insurance over money paid to Scottish Government-owned ferries owner Caledonian Maritime Assets Limited (Cmal).

In 2015, Cmal ordered two ferries for CalMac to be built by Ferguson’s Port Glasgow shipyard, but major delays and cost overruns led to the firm going into administration and being taken over by the Scottish Government.

The first newbuild Glen Sannox is not now expected to start operating on the main (Ardrossan-Brodick) Isle of Arran route (see related story) until summer 2022 – more than three years late.

As The Scotsman writes the unnamed sister vessel is due to enter service early in 2023 on the Skye-Harris-North Uist routes.

Their combined cost has increased from £97m to £192.8m- £196.8m.

More on the story here.

Published in Shipyards
Jehan Ashmore

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Shipyards

Afloat will be focusing on news and developments of shipyards with newbuilds taking shape on either slipways and building halls.

The common practice of shipbuilding using modular construction, requires several yards make specific block sections that are towed to a single designated yard and joined together to complete the ship before been launched or floated out.

In addition, outfitting quays is where internal work on electrical and passenger facilities is installed (or upgraded if the ship is already in service). This work may involve newbuilds towed to another specialist yard, before the newbuild is completed as a new ship or of the same class, designed from the shipyard 'in-house' or from a naval architect consultancy. Shipyards also carry out repair and maintenance, overhaul, refit, survey, and conversion, for example, the addition or removal of cabins within a superstructure. All this requires ships to enter graving /dry-docks or floating drydocks, to enable access to the entire vessel out of the water.

Asides from shipbuilding, marine engineering projects such as offshore installations take place and others have diversified in the construction of offshore renewable projects, from wind-turbines and related tower structures. When ships are decommissioned and need to be disposed of, some yards have recycling facilities to segregate materials, though other vessels are run ashore, i.e. 'beached' and broken up there on site. The scrapped metal can be sold and made into other items.