Talks over multi-million pound Scots ferry-building revolution
He was a key part of the Clyde Catamaran Group which had meetings with ministers over an £800m scheme to provide a new fleet of 50 catamaran ferries built over 20 years which would cost a fraction of those currently being built.
The Herald revealed last year that the consortium that also includes Peter Breslin, managing director of Govan Drydock, said that despite discussions there had been no interest in taking the plan – that they felt would breathe new life into Scottish shipbuilding – any further by either ministers or Caledonian Maritime Assets Ltd (CMAL), the taxpayer-funded company which owns and procures ferries.
READ MORE: Fiji goes for Scot’s shipbuilding revolution after ScotGov ‘rejection’
But the new talks with ferry fiasco firm Ferguson Marine have surfaced in the wake of new leadership of the Scottish Government, and a warning to ministers that the nationalised shipyard firm at the centre of Scotland’s ferry fiasco could have to close in a short period of time without urgent action.
Ministers have been told they face “tough decisions” over the future of Ferguson Marine, which is building two wildly late and over-budget ferries.
The consortium have envisaged that the major catamaran project would be based at nationalised Ferguson Marine, Inchgreen dry dock in Inverclyde and Govan dry dock.
(From left) Peter Breslin, Stuart Ballantyne and Professor Alf Baird of the Clyde Catamaran Group.
The Govan dry dock dates back to the 19th century, and has been out of action for more than 40 years but there were hopes that it can be brought back into use.
When it opened in 1964, Inchgreen was one of the world’s largest dry docks – narrow basins which can be flooded so ships can enter, then drained to allow work to be done.
It has emerged that Mr Ballantyne is to meet Ferguson Marine interim chief executive John Petticrew on Saturday for informal talks.
An invite has also gone out to deputy first minister Kate Forbes about the future of ferries having had what are described as “positive discussions” with Orkney Council over the procurement of a new five to six vessel ferry fleet.
Ms Forbes has also been forwarded the wider 20-year ferry development plan previously rejected as part of a bid to ignite discussions that would bring work to Ferguson Marine, and the Inchgreen and Govan dry docks.
The group said that Ms Forbes had been interested in the plan when she was finance secretary but went on maternity leave, and then was removed from office when Humza Yousaf took over as First Minister.
More immediately, the entrepreneur has told Ms Forbes that he wants to break an “impasse” between Orkney and the Scottish Government over the provision of six vessels which he says could be built at Ferguson’s.
He told her that it would “secure a pipeline of quality production work for jobs and skills training at Ferguson’s.
He said it would “show the Scottish public that Government are making correct decisions for the future prosperity of Port Glasgow and the region”.
Robert Buirds, secretary of the Campaign to save Inchgreen Dry Dock which is behind a bid to secure the future of Clydeport and was involved in the Clyde Catamaran Group said: “Assistance from the Scottish Government would secure the immediate future of the yard and the save the threatened 350 jobs. This would give breathing space for the yard and the Scottish Government to develop a longer term plan for the future of the yard.
“Stuart has supported the campaign ambitions for Inchgreen and the yard since he contacted us two years ago. We believe the next stage of securing the future of commercial shipbuilding on the Clyde is to link up Ferguson’s with Inchgreen dry dock.
“This would open up a larger market place for the yard in building larger ships but also diversifying into ship repair, servicing and maintaining when required. However major investment would be required to cover the dry dock protecting the workforce from the unpredictable Scottish weather and increasing productivity.
“We have forwarded the 20-year Scottish ferry building plan that we introduced to Kate prior to her maternity leave. We have asked for a further meeting to discuss our vision. The plan will create hundreds of new skilled jobs and regenerate Inchgreen, Govan and further develop Ferguson Marine.
Mr Ballantyne, who ten years ago received an honorary degree from Strathclyde University for services to the global maritime industry has already got the nod from Fiji’s prime minister to take his catamaran plans there.
The Clyde Catamaran Group includes Professor Alf Baird, former director of the Maritime Research Group at Napier University who has been nonplussed by Scotland’s failure to grasp the nettle, and said Mr Ballantyne’s deal with Fiji follows on from Stuart’s earlier successes in helping develop shipyard operations in Vietnam, Indonesia and China based on production of his proven ferry designs.
The consortium had been in talks with ministers and presented a seminar in 2022 over their plans attended by then CalMac chief executive Robbie Drummond – but said in the summer of last year that there was no tangible interest shown and criticised CMAL’s failure to attend in person.
The sunk project for 50 catamaran ferries for use by Scottish Government-owned ferry operator CalMac for the lifeline islands services off the west coast of Scotland and for services to Orkney and Shetland would cost £200m more than it has so far cost to build just four in Turkey and at Ferguson Marine in Scotland.
The group said they had expected the savings in operating subsidy to exceed £1 billion over the 20-year build programme period.
CalMac’s parent company David MacBrayne Group (DMG) has received over £1bn in taxpayer subsidies over the first seven years of its contract to run the Clyde and Hebrides lifeline ferry services. The level of handout has soared from £131.939m in 2016/17 to over £163m in 2021/22 including £11.7m in Covid funding. In 2022/23 that it rose again to £173.03m.
The Clyde Catamaran Group said it meant that the entire Scottish ferry fleet of some 50 vessels could in “large part” be financed through savings in operating subsidy, “without significant changes in user tariffs or Scottish Government having to find significant additional money”.
Under the current rate of ferry delivery under the Scottish Government, 50 ferries would take 140 years to complete.
The scheme involved the building of a further ten vessels for the export market for £200m over the 20 years.
The group had been seeking public funding through Scottish Government and private investors for the upgrading of Inchgreen and Govan to the tune of £35m and £45m.
The invitation to Mr Petticrew says: “One of Stuart’s ferries, MV Pentalina, has been operating successfully in Orkney for the past 15 years or so. During Stuart’s presentation he strongly urged the council and Scottish Government to use Ferguson Marine to build their new ferry fleet using his proven, competitive designs.
“Stuart is over from Australia and would like to meet you and your colleagues and inform you of these discussions with Orkney Council.”
The group believe CMAL is anti-catamaran – and has decided to stick with monohull boats when ordering new four new ferries from Turkey. CMAL denies it is anti-catamaran.
It comes as the new lifeline vessels Glen Sannox and Glen Rosa which were due online in the first half of 2018 when Ferguson Marine was under the control of Scots tycoon Jim McColl, with both now to serve Arran, are now over six years late. And the last estimates suggest the costs of delivery could more than quadruple from the original £97m cost.