(3rd May Update below) Western Ferries has announced that it has appointed Birkenhead’s Cammell Laird shipbuilders as preferred bidder for the construction of two new ferries for its Gourock-Dunoon route, with delivery in the summer of 2013.
In evidence of good, ream-based business practice, staff were the first to be told and have known of this since last Friday (27th April).
The boats already have their hull numbers from Cammell Laird – 1387 and 1388, with construction to start in June this year. The intention is that they will be in operation in time for the 2013 Cowal Games, which will add another frisson to this annual cultural celebration of competition.
The new boats will be similar in configuration to the newest ferries currently in the Western fleet – Shuna and Scarba but they will have a further 20% capacity and will be faster, with improved passenger facilities – all designed to meet growing demand on this busy and successful route.
Last year, with around 32,000 sailings – the largest annual number on any route in Scotland – Western carried more than 1.3 million passengers and over 600,000 cars.
This investment in the route by Western Ferries comes after a recently completed £4 million investment in its terminals at the two destinations.
The ambition for the service is matched by a care for commercial sustainability with the new boats to be more environmentally responsible in their greater fuel efficiency – which will, of course, reduce running costs. This also benefits customers in helping to keep fares down.
Western’s Managing Director, Gordon Ross has talked of the strengths in the relationship with Cammell Laird on this order, saying: ‘Western Ferries is delighted to appoint Cammell Laird as the preferred bidder to build two new ferries for its Gourock to Dunoon service.
‘Not only was Cammell Laird’s bid the most commercially competitive, it also provided for the earliest delivery of the vessels which was a crucial factor for the Company and the local community.
‘Despite strong international interest, Western Ferries is also very pleased that these new vessels, along with the new vessels introduced in 2001 and 2003, will be fully built in the UK.’
Western is a major employer in Dunoon and Cowal, with 55 employees from the area, so this expanded reach into the Central Belt and a more muscular link between that powerhouse and Dunoon and Cowal, will be welcome reassurance of forthcoming economic activity to the company’s workforce and the residents of the area.
Cammell Laird employs over 750 people at Birkenhead, and a similar number of subcontractors from the
local supply chain. It’s expansive base there on the Mersey includes significant ship-building, ship-repair, heavy fabrication and an engineering facility.
Their CEO, John Syvret, outlining the portfolio of builds the yard embraces and enjoying the prospect of working with the Western Ferries team, says: ‘This project is a welcome addition to the already diverse range of offshore, commercial and military projects underway within the yard, and will compliment the successful module construction work we have been undertaking in support of the Queen Elizabeth Class aircraft carriers.’
Given that the UK economy is now on a double dip recession, the commitment to growth in this Western Ferries investment lifts morale well beyond Dunoon and Cowal.
Political responses
Jamie McGrigor, Highlands and Islands MSP
Speaking at Holyrood today Jamie McGrigor said:
‘This is a very significant and positive announcement from Western Ferries which will be welcomed by local residents of Dunoon and Cowal and visitors to the area alike.
‘I look forward to these vessels being delivered on the route, hopefully in 2013, and offering passengers improved facilities. It is also a real boost to the UK economy that these new vessels will be built here.
‘Western Ferries offers a fast, efficient and reliable passenger and vehicle service on the Gourock-Dunoon route and the company’s investment in new vessels reminds us of the contrast between that company’s very good record on this route and the record of successive Lib-Lab and SNP Scottish Governments who repeatedly mishandled matters and left the town centre to town centre service being run by Argyll Ferries as a passenger only one.’
3rd May update: Statement from Fergusons
For Argyll asked Fergusons about the issue of delivery dates on the western ships. Managing Director, Richard Deane, points out the straightforward realities:
‘Of course, everyone at Ferguson Shipbuilders Limited was disappointed to miss out on the contract to build two new vessels for Western Ferries.
‘To answer your specific question, as Ferguson Shipbuilders Limited employs 120 people approximately and Cammell Laird employs 750, their facilities clearly are much bigger therefore they are saying that they can deliver the vessels earlier than Ferguson Shipbuilders Limited could. However I think the real issue with regard to the contract award is that Cammell Laird has priced the vessels less than Ferguson Shipbuilders Limited and Western Ferries, being a small commercial organisation, has decided this is the best option for them. Therefore the delivery of the vessels in time for the Cowal Games is not the main reason for the contract going to Cammell Laird.
‘Ferguson Shipbuilders Limited, who built the first new vessel for Western Ferries many years ago, is disappointed to lose out on the tender. However we wish Western Ferries and Cammell Laird every success in the project.’
…”comes after a recently completed £4 million investment in its terminals at the two destinations”. Hah, and that included the passenger facilities at each side.. one drafty acrylic box! One hopes that they will also spend some money on decent waiting rooms!
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Pete – good comment.
And of course asking Western to get the boats built in Scotland where the majority of their “1.3 million passengers and over 600,000″ come from was just too much to expect. The comment that Newsie makes “this…investment lifts morale well beyond Dunoon and Cowal” will certainly be true in Birkenhead on the Mersey – but I’m just not sure just how high it will lift the morale of the workers at Ferguson’s shipyard at Port Glasgow…
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Simon – would be nice to see the boats made more locally, but it’s a competitive world nowadays. The contract could have gone to Eastern Europe, or further afield – at least they’re being built in the UK.
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could they send one on loan to Kilcreggan?
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Good news for the area, but at 20% extra capacity, will an extra 6 or 7 car spaces really make much difference? As commented by others, passenger facilities at the terminals are dire, and really need to be vastly improved. Maybe Newsroom could ask if this is on the agenda, given western want to improve the route for Cowal? A massive further investment by a private company, especially in these unsure times.
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Tim – a very fair point.
However, my understanding that whislt public services are required by legislsation to tender large contracts on a pan-Europe basis – there is no such requirment of private sector companies
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with the arrival of these 2 new boats mean western will have 4 boats sailing on this route ?
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They already do have four boats running!
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So will that mean the 2 older ships will be retired, or possibly moved to Toward, if that complex ever starts? Or moved to Dunoon to Gourock town centres route!
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I suppose the newsroom (aka soapbox) is just going to accept the figures in this article without any kind of analysis of what they mean?
Lets just assume all the vehicles were not commercial then 600,000 crossings at £11.40 each is £6,840,000. Taking 1.3M adult passengers at £4.10 each is £246,000 so the total is roughly £12.2M. This does not seem to include the “gift” from the Government of 60,000 vehicle and driver crossings resulting from the closure of the CalMac vehicle service which would come to £930,000. So we can see that very crudely the turnover must have been over £13M.
It is woth noting how much more profitable the vehicles were than the passengers.
I have only used the rates for passenger vehicles. That is because the website does not give commercial rates. I have heard though that taking a commercial transit across might be £100 each way – perhaps somebody can shed some light on the truth or otherwise of this. So actual turnover may be much higher than my rough stab.
Now of course Western Ferries has overheads so we need to deduct those to arrive at the profits. The company tried to avoid paying tax, but lost its battle with HMRC. This means there must be accounts in the public domain.
So Newsroom you want to be a news service instead of a blog. How about earing your cub reporter’s badge by finding out what Western’s commercial rates are. Also you can dig out the accounts and find out how much of the £13M went to pay the wages of the 55 staff and how much went to shareholders.
I believe there are 5 shareholders none of whom stay in Argyll, in fact I am not sure any of them live in Scotland, I think one is in Switzerland (those gnomes in Zurich have an eye for rich pickings).
My guess is that far more money than was paid in wages leaked out of the Cowal economy via this private monopoly.
Money much of which was paid by people who have to use ferries on a regular basis or who buy goods and services transported on them.
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Sorry 1.3M adult passengers at £4.10 each is £5,330,000.
Not sure how I made that mistake, but the totals appear correct.
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If you are interested in the company accounts you can find out all the info via this web site:
http://companycheck.co.uk/company/SC091850
Although a limited company, Western are sufficiently large as to have to file full accounts which are available to purchase for a couple of pounds.
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Stop – otherwise newsroom (aka soapbox) will not get their cub scout newsreporter merit badge for investigative journalism, just for the sake of a couple of pounds.
What we really want to know is who the shareholders are , how much they have extracted from the local economy versus wages paid etc. etc.
Of course if forargyll want to go “tabloid” then maybe they could build a story on: who tried to avoid tax, then payed tax so as to make a loss, then claim tax relief because they made a loss.
It is amazing the depths journalists will sink to, but at least a journalist has to have some factual information whereas a blog can just post opion and invent things as foragyll does.
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