Caledonian Maritime Assets Limited has taken ownership of the three remaining vessels under construction at the Cemre Shipyard in Turkey as a precautionary measure to support their completion and delivery, the publicly-owned ferry operator stated.

The three ships, MV Loch Indaal, MV Lochmor and MV Claymore, are now assets owned by CMAL ahead of their formal handover. According to the organisation, the decision has been taken against the backdrop of what it described as exceptionally challenging economic circumstances affecting Cemre and many businesses across the region, with global economic pressures including the impacts of the conflicts in Ukraine and Iran, together with disruption to shipping in the Red Sea, all contributing to the situation. By transferring ownership of the vessels ahead of formal handover, CMAL has said it is acting to protect the project and to ensure the continued delivery of much-needed ferries for Scotland’s island communities.

The announcement follows the successful completion of sea trials for MV Loch Indaal, which CMAL described as a significant milestone in the construction programme. The vessel is the lead of the four small ferries being built at Cemre under the Small Vessels Replacement Programme, intended to renew the inshore element of the CalMac fleet operating to the smaller communities of the Clyde and Hebrides network.

Kevin Hobbs, Chief Executive of CMAL, said the move was a precaution rather than a response to immediate failure. “While we are disappointed by the circumstances that have led to this decision, our priority remains the completion of these vessels for the communities that depend on them,” he said, as quoted in the organisation’s press release. “Taking ownership of the vessels at this stage is a precautionary move to reduce risk, protect the investment already made and support our objective of bringing these vessels into service as quickly and efficiently as possible. We will continue to work closely with the shipyard and partners to maintain progress towards delivery.”

Cabinet Secretary for Economy, Tourism and Transport Stephen Flynn said the Scottish Government was fully behind the approach. “The Scottish Government is committed to renewing the CalMac fleet for the benefit of our Island and coastal communities,” he said. “Our full focus is on delivering the remaining vessels currently under construction at the Cemre yard, to improve the long-term resilience and reliability of ferry services. We fully support the approach CMAL has taken to secure ownership of the vessels ahead of formal handover helping to ensure their delivery, while protecting public investment.”

Flynn added that CMAL was working at pace to set out the next steps for the vessels and that he would continue to engage with local communities and stakeholders throughout the completion and deployment of the ships.

Duncan Mackison, Chief Executive of CalMac, said the ferry operator’s services would not be immediately affected by the change of ownership. “I can reassure island communities that this measure has no immediate impact on the service we provide,” he said. “We have two major vessels operating as resilience vessels this summer, in part thanks to the arrival of MV Isle of Islay. She has proven to be a valuable and highly regarded addition to the fleet and we will continue to support CMAL and our partners as we move towards completion of her sister ships.”

Turkey’s shipbuilding sector has been operating under significant pressure across the past two years, with currency volatility, energy costs and broader regional economic strain all affecting the cost base for yards working on long-cycle, fixed-price contracts. Several Turkish builders have faced difficulties on commercial and government orders during the period, and the wider regional disruption stemming from the Red Sea situation and from broader Middle Eastern instability has added further complications to logistics and supply chains.

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

1 COMMENT

  1. That’s actually pretty significant, it would suggest that the risk assessments say there is a fair change of the shipyard going bust.. actually buying the assets before completion is a bit of a risk, but would prevent total loss of the assets to creditors if the shipyard still owned them.

LEAVE A REPLY

Please enter your comment!
Please enter your name here