Caledonian Maritime Assets Limited (CMAL) has awarded a contract to build two new freight flex vessels for Scotland’s Northern Isles routes, with construction set to take place at Guangzhou Shipyard International in China.
The vessels, which will replace MV Helliar and MV Hildasay on the Aberdeen to Kirkwall and Lerwick route, are intended to increase freight capacity, improve operating speeds and provide space for up to 200 passengers during peak periods and dry dock cover, according to Transport Scotland.
The contract follows a competitive tender process assessing shipyards on capability, capacity and facilities, with no UK yards submitting bids. Ferguson Marine did not take part, with the 140-metre vessels exceeding the yard’s size constraints.
Delivery of the two ships is currently expected by 2029, with total programme costs estimated at around £200 million, including vessel construction and associated project costs.
Transport Secretary Fiona Hyslop said the new vessels respond to long-standing capacity concerns, stating “we heard clearly from islanders and stakeholders the need for improved freight and cabin capacity,” adding that the ships would enhance “the resilience and reliability of the Northern Isles ferry services for years to come.”
CMAL chief executive Kevin Hobbs described the award as “a significant milestone in delivering the replacement vessels,” adding that the ships would provide “a vital boost to freight capacity” and support more reliable passenger services.
Guangzhou Shipyard International president William Zhou said the company recognised “the strategic importance of these new freight flex vessels” and would deliver vessels designed to be “reliable, efficient… and environmentally responsible.”
The procurement was led by CMAL as the contracting authority, with Scottish ministers not directly involved in the tender decision.
shocking decision by the Scots government. Short sighted and definitely not in the national interest
Where else should they have got them? No one in the UK bid.
It’s worth pointing out that China is our 5th biggest export market. We can stick a block embargo across the board.
The fact that no UK yard bid should concern us, not close the discussion. It suggests the procurement environment is not providing the continuity of work needed for domestic shipbuilders to remain competitive.
The UK’s trade relationship with China is heavily imbalanced – we import significantly more than we export – and many Chinese shipyards benefit from substantial state support and strategic industrial policy. Competing against state-backed pricing without considering wider economic effects risks undermining domestic capability further.
Each time publicly funded contracts are placed overseas, skills, supply chains and investment confidence are weakened. That makes it even less likely that UK yards will be in a position to bid next time, reinforcing the same outcome.
Strategic sectors such as shipbuilding cannot be viewed purely through short-term price comparisons when competitors operate under very different economic conditions.
The real question is whether procurement policy is supporting long-term national capability, or contributing to its gradual erosion.
No real shock, It was the only realistic option.
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SNP for all their pandering about being for Scotland and being nationalists and then they do this and look after china instead of Scotland.
Living in Orkney I think the general idea is good, my biggest problem is that there are not enough cabins being provided to cater for the number of passengers proposed. Sometimes these vessels will operate journeys via Kirkwall between Aberdeen and Lerwick which will exceed 18 hours. Given adequate numbers of cabins this would likely encourage potential passengers to take the more leisurely route to Shetland and get off the vessel later in the day than the current arrivals allow for.
Increased capacity per sailing is important speed often is not and operating at slower speeds could be considerably cheaper.
The issue isn’t just that no UK yard bid this time, it’s why that keeps happening. When publicly funded contracts go to heavily state supported overseas yards, the cycle reinforces itself and domestic capability declines further. Focusing only on the lowest headline price is often a false economy, as much of the wider economic return, jobs, skills, tax revenue and supply chain activity, leaves the UK. We already import far more from China than we export, so the overall balance matters. Procurement decisions shape whether we retain strategic industrial capacity in the long term. This should be seen as humiliating and a disaster! Which it is.