Future of Ardrossan harbour still in limbo, says ferries boss

The fate of a lifeline port remains in limbo seven years after a major upgrade was promised, according to the boss of Scotland’s ferries agency.

Ardrossan harbour faces an uncertain future because two new ferries due to be deployed on CalMac’s Arran route are too big to fit.

Kevin Hobbs, chief executive of government-owned ferries and harbours body CMAL, told MSPs that talks with the port’s private owner about funding remained “in the middle of nowhere”.

MV Glen Sannox, which enters service next week, will initially sail from Troon but will be restricted to three daily return crossings because of the extra journey time.

Ardrossan will then be left with no scheduled CalMac sailings at all for two months until the old Arran vessel, MV Caledonian Isles, returns from repairs in March.

The Ardrossan Harbour Project was given the go-ahead in 2018 by then transport minister Humza Yousaf who promised the North Ayrshire town would remain the main gateway to Arran.

But Transport Scotland paused the project in 2023 following concerns about rising costs, and said a new business case would be developed.

The existing facilities at Ardrossan are deemed too difficult for the new larger ships to berth at safely.

Mr Hobbs told Holyrood’s net zero, energy and transport committee the situation with Ardrossan was “frustrating”, but that it was out of CMAL’s control as the “lifeline harbour” was in private hands.

He said no progress could be made until there was agreement on funding from three partners – Peel Ports, Transport Scotland and North Ayrshire Council.

Asked where those negotiations stood, he replied: “In the middle of nowhere I think at the moment.”

He added: “Let’s just say those amounts of money are ebbing and flowing between the three parties, which makes it very tricky.”

Glen Sannox and its sister ship Glen Rosa, due for delivery in the autumn, will also have to rely on road tankers for their liquefied natural gas (LNG) refuelling because no dedicated facilities have yet been constructed.

CMAL awarded a contract to build the LNG storage and fast refuelling station to a Danish company in 2020 – but Mr Hobbs said construction could not begin until a firm decision was taken on where the new ferries would be based.

He said he expected a minister to make an announcement on the Ardrossan project in the coming months.

CalMac said operating out of Troon would inevitably result in fewer daily sailings because of the longer journey but that it would continue to work with partners to secure Ardrossan’s redevelopment.

A spokesperson for Ardrossan Harbour, owned by Peel Ports, said the uncertainty was “devastating for the people and businesses of Arran and Ardrossan”.

They added: “Peel Ports remains fully committed to the original Port redevelopment programme and is ready to begin the public procurement process once the ministerial taskforce approves the revised business case.”

Transport Scotland said a revised business case was almost complete but it needed to be supported by financial contributions from each of the main partners.

A spokesperson said: “It is vital that these packages and legal agreements are clearly defined, affordable and ensure value for the public purse.”

Mr Hobbs and CMAL vessels director Jim Anderson also revealed to the committee that Glen Sannox was 90 tonnes heavier than specified when handed over by the Ferguson shipyard in November.

That might result in a reduction in cargo payload when carrying freight – but this would not affect car or passenger capacity on the Arran route, they said.

Mr Anderson said the achieved payload was “more than adequate for the needs, not just for that route, but for other routes”.

The issue of cargo payload was a source of tension between CMAL and the shipyard’s former owners who said the original specification was unachievable.

Kevin Hobbs was also questioned by committee convener Edward Mountain about payment arrangements for a former CMAL employee who until last year was seconded to the Ferguson shipyard.

Senior technical manager Andy Crossan was engaged as project director for the new ferries in February 2022 by former Ferguson boss David Tydeman, who hoped it would mend the long-broken relationship between the shipyard and its customer.

Last month, the auditor general revealed that, in addition to his CMAL salary, Mr Crossan was given an uplift of £36,000 by Ferguson’s, later rising to £54,000.

The arrangement then changed again so that he was employed as a freelance consultant, and he subsequently invoiced the shipyard for nearly £145,000.

Mr Hobbs said he was aware of initial financial arrangement with the CMAL employee but did not know it had been changed.

He said the first he knew of it was after Mr Tydeman left the company, and he was approached by the shipyard’s new chief financial officer.

“I was surprised – and other emotions,” he told the committee. “Let’s just say I wasn’t very happy.”

The shipyard ended the arrangement and Mr Crossan, who was turning 67, then retired, he said.

Mr Hobbs agreed with the convener that it was “odd” for changes to the remuneration deal to be made without anyone at CMAL knowing about it.

“I haven’t got a crystal ball, and if someone doesn’t come along, which is what the contract said, if there’s any variations it needs to be exposed – and it wasn’t,” he said.