I’ll go one step further – Scotland’s naval shipbuilding industry is witnessing a renaissance. This boom promises consistent growth well into the 2040s. Shipyard workers in the heart of Glasgow, Rosyth and Port Glasgow are busier than they have been in decades. A sector once marred by periods of ‘feast and famine’ is now witnessing a resurgence, with its shipyards humming with activity and its workforce expanding.
Paul Sweeney MSP, convener of the Cross Party Group on Maritime and Shipbuilding, spoke to me about the sector’s challenges and successes as a former shipyard worker and a policy advocate.
[block quotes] “The level of capital investment in Scotland’s shipyards is at the greatest level since the 1960s when the industry underwent massive restructuring in the face of overwhelming global competition. Today the two major UK naval shipbuilding programmes, Type 26 and Type 31, have underpinned the development of the New Assembly Hall at BAE Systems’ Govan Shipyard and Venturer Building at Babcock’s Rosyth Dockyard respectively.
“Both projects are vital to getting these sites into the upper quartile of shipyard facilities globally, as integrated undercover ship assembly realises significant productivity and quality improvements, especially in Scotland’s often unpalatable climate that can cause huge risk to lost working days on shipbuild programmes.
“As the Convener of the Cross Party Group (CPG) on Maritime & Shipbuilding at the Scottish Parliament, we recently published a report along with the UK Parliament’s All-Party Parliamentary Group (APPG) on Shipbuilding & Ship Repair, emphasising the need to invest further in shipyard infrastructure improvements that go beyond naval programmes, in order to allow the UK and Scotland to recapture a share of the commercial shipbuilding market, especially with the huge opportunity presented by ScotWind.
“We must get serious about an integrated plan for commercially competitive shipbuilding in Scotland that will unleash our export potential and generate thousands of skilled jobs and drive economic growth.”
The shipbuilding pipeline
The below graphic details the planned naval ship pipeline.
Now, let’s take a look at the main shipbuilding sites in Scotland; what they’re doing and how they’re doing it.
BAE Systems in Glasgow
The shipyards of Govan and Scotstoun, under the stewardship of BAE Systems, are showcasing resilience in the face of delays brought about by the pandemic and other factors. These historic sites are not only overcoming challenges. Still, they are also making significant strides in the Royal Navy’s ambitious Type 26 frigate programme.
The Type 26 frigate programme, essential for the future operational readiness of the Royal Navy, has faced its share of hurdles. Notably, a 12-month delay and a £233 mn budget overrun were announced, attributed to challenges in finalising designs, delays in the delivery of essential equipment, and the unforeseen impact of the Covid-19 pandemic, which temporarily halted operations at the Govan shipyard.
Despite these challenges, the dedication to bringing these advanced vessels to life has remained strong. Govan’s shipyard is bustling with activity, with HMS Cardiff advancing through critical construction phases before it transitions to Scotstoun for outfitting in 2024.
Simultaneously, Scotstoun is preparing HMS Glasgow, the first Type 26 frigate, for upcoming sea trials. The momentum continues with work on the third ship, HMS Belfast, and the fourth, HMS Birmingham, which is well underway at Govan. The steel cutting for Birmingham last year marks a significant milestone, underscoring the continuous progress of the programme despite previous setbacks.
Setting sail for the future
The threat of strike action, which loomed over the shipyards due to disputes involving over 30 Unite union members working on the Type 26 frigates, was successfully averted. A significant pay rise agreement with CBL Cable Contractors Limited ensured that work continued without disruption.
Amidst previous operational challenges, BAE Systems is pioneering the future of shipbuilding in Scotland by constructing a massive ‘frigate factory’ facility at Govan. This innovative facility is set to transform ship assembly at the site, allowing for indoor construction that shields against the elements, thereby enhancing efficiency. This development represents a significant investment in naval shipbuilding and showcases a commitment to adopting modern, efficient practices that will benefit the construction of Type 26 ships from HMS Belfast onwards.
Ferguson Marine in Port Glasgow
A prime example of resilience and adaptability in this sector is Ferguson Marine in Port Glasgow. Despite facing recent hurdles, particularly in delivering two innovative ferries, the shipyard is charting a course towards a promising horizon.
Ferguson Marine’s ambitious project to deliver the MV Glen Sannox and MV Glen Rosa has encountered delays due to issues with specialist pipework essential for the vessels’ fuel systems. These ferries have faced several setbacks since their initial scheduled delivery in 2018. The complexity of the new fuel system and regulatory demands have led to disputes and delays, pushing the commissioning of the fuel system to late May and delaying the launch of MV Glen Rosa by four weeks to prioritise Glen Sannox’s completion.
Despite these setbacks, the future of Ferguson Marine looks promising. The shipyard’s CEO, David Tydeman, has expressed optimism, particularly with the potential for significant work from the Royal Navy’s Type 26 Frigate programme. This opportunity could utilise over half of the yard’s capacity, providing a much-needed boost as work on the two ferries winds down. A framework agreement signed with BAE Systems aims to address workforce surplus and ensure the yard’s involvement in the buoyant shipbuilding market as a supporting contractor.
Ferguson Marine’s strategy for recovery and growth is multifaceted. The yard is actively pursuing opportunities in the patrol craft market and engaging with operators in the wind farm sector. Such diversification could provide long-term stability and open up new avenues for business. Moreover, the involvement in the Type 26 Frigate programme and potential future work for the state-run ferry operator CalMac indicate a solid base for the yard’s operations.
The recent secondment of Ferguson Marine workers to BAE Govan is a testament to the yard’s commitment to skill enhancement and knowledge transfer. This initiative contributes to the completion of high-profile military projects and bolsters the workforce’s capabilities, ensuring Ferguson Marine remains competitive in securing future contracts.
Despite the acknowledged setbacks with the Glen Sannox and Glen Rosa, the yard’s leadership is confident about Ferguson Marine’s ability to re-establish its reputation. The engagement in third-party work with BAE Systems for the Type 26 Frigates is a significant step towards sustaining the shipyard’s future, demonstrating the industry’s trust in Ferguson Marine’s quality and precision.
Ferguson Marine is not just weathering the storm but is poised for recovery and growth. The shipyard’s journey reflects the broader challenges and opportunities within the Scottish shipbuilding sector, showcasing resilience in the face of adversity and a clear vision for the future. As Ferguson Marine looks beyond current projects to new opportunities, it stands as a beacon of innovation and adaptability in Scotland’s illustrious shipbuilding heritage.
Babcock in Rosyth
Babcock’s Rosyth facility is engaged with the Type 31 frigate programme. The recently built Rosyth ‘frigate factory’ is at the forefront of this effort, demonstrating the efficiency and scale of modern shipbuilding. Here, the construction of HMS Active is underway alongside HMS Venturer, illustrating the facility’s ability to build frigates concurrently.
This ability to build two massive warships side by side underscores the factory’s impressive dimensions, which are capable of housing three Olympic-sized swimming pools, and its innovative design, with 30-metre-high doors accommodating the side-by-side assembly of two vessels.
The Type 31 programme aims to offer a cost-effective solution to the Royal Navy’s needs, contrasting with the more expensive Type 26 frigates. However, Babcock’s journey through 2023 was challenging. The programme’s ambitious production plan faced challenges exacerbated by the impact of the Covid-19 pandemic, leading to increased costs. This resulted in a dispute with the Ministry of Defence (MoD) over who would bear these additional expenses, initiating a Dispute Resolution Procedure (DRP) that risked arbitration.
Dispute resolution
Babcock’s preliminary assessment suggested that resolving this dispute without recovering the additional costs would necessitate a significant one-off provision, potentially making the contract loss-making. As the calendar turned to 2024, Babcock announced the resolution of its dispute with the MoD. Although specific details remain protected under a Non-Disclosure Agreement, this resolution has led to a more clearly defined and robustly specified contract. This breakthrough clears the path for the accelerated construction of the Type 31 frigates, with HMS Venturer poised to be structurally complete shortly and HMS Active’s construction progressing swiftly in the state-of-the-art frigate factory.
Despite facing and overcoming significant challenges, the project is now back on track, promising to deliver a fleet of five vessels into Royal Navy service by the end of the decade.
In addition to the above and in addition to the refit and maintenance work the yard undertakes on various vessels for various organisations and navies, the facility will, as part of the Ukrainian Naval Capabilities Enhancement Programme agreement signed with the UK government in October 2020, Babcock will build at least one Fast Inshore Attack Craft for Ukraine at their Rosyth facility.
The future of shipbuilding in Scotland
Central to the future of shipbuilding in this country is the establishment of a new Applied Shipbuilding Academy at BAE Systems’ Scotstoun shipyard on the River Clyde in Glasgow. This move signifies a profound commitment to the future of shipbuilding in Scotland and beyond.
Comprising a Modern Trade Hall and a Flexible Learning Hub, the academy caters to the entire workforce spectrum, from apprentices to senior leaders. This initiative is part of BAE Systems’ broader strategy to modernise Glasgow’s historic shipbuilding industry, ensuring its viability and competitiveness for future generations.
The academy will retrofit a historic industrial building into the Modern Trade Hall, featuring dedicated areas for each shipbuilding trade, ship-realistic mock-up environments, and cutting-edge research & technology facilities. Adjacent to this will be the Flexible Learning Hub, equipped with over 30 classrooms, a STEM innovation lab, and office facilities. Slated for completion in the second half of 2024, the academy will offer bespoke training for nearly 4,500 employees, including close to 700 apprentices, and aims to double the intake in Glasgow to over 200 new apprentices each year. This is a fantastic boost for every yard in the country.
This ambitious project is a testament to BAE Systems’ dedication to the craft of shipbuilding and the skilled workforce that propels it. The National Shipbuilding Office has also lauded this initiative, noting the urgent need for shipbuilding skills investment identified by the UK Shipbuilding Skills Task Force.
These investments are poised to significantly enhance Scottish civil and naval shipyards’ productivity, making them more attractive for potential future orders and ensuring their place in the competitive global shipbuilding market.
More on business
