[10][8] FMEL had been formed s year earlier when Jim McColl rescued the shipyard from bankruptcy, it now told CMAL that it could not provide the contractually required bank-backed guarantee.

[12][13] The shipyard was nationalised on 2 December 2019 as a new company named Ferguson Marine (Port Glasgow) Ltd.,[14] then increasing costs and further lengthy delays became a continuing political scandal,[15][16][17] the "ferry fiasco".

[4][11] The state-owned enterprise CalMac, originally Caledonian MacBrayne Ltd, was formed in 1973 as a vessel owner and operator providing most of the ferry services to the Firth of Clyde and the Hebridean islands off the west coast of Scotland.

[31] Many of CalMac's ferries were built by Ferguson Shipbuilders, which employed over 300 people in 2000,[32] but it had struggled to compete and orders from the Scottish Executive were won by the Remontowa shipyard in Gdańsk, Poland.

[34][35] The Scottish Government's Ferries Plan, which its executive agency Transport Scotland published in December 2012,[36] included indicative proposals for two new major vessels.

[37] International emissions regulations tightened, and cleaner liquefied natural gas (LNG) fuel was adopted by ferry operators in Northern Europe,[38] particularly Norway.

[40] To prepare the Vessel Replacement and Deployment Plan (VRDP), Transport Scotland held tripartite monthly meetings with CMAL and CalMac, starting in October 2013.

[41] In early July 2014 the Scottish Government, using CalMac's initial analytical work, authorised the procurement of these two new major ferries, aiming to name the preferred bidder in nine months.

The workforce was reduced to 77, then on 15 August 2014, a month before the Scottish independence referendum, the yard went bankrupt,[42][43] and the administrators KPMG immediately laid off 70 workers.

[44] The First Minister of Scotland, Alex Salmond of the SNP, personally intervened and persuaded businessman Jim McColl, one of his Council of Economic Advisers, to buy out the shipyard.

[12] McColl's Clyde Blowers Capital, previously deterred by the yard's debts, now took over its assets and business,[34][45] and formed Ferguson Marine Engineering Ltd. (FMEL) as a new subsidiary.

[41] The pre-qualifying questionnaire (PQQ), issued by CMAL on 17 October,[47] invited shipbuilders to demonstrate their capability for detailed design, construction, testing, and delivery of two 100 metres long ROPAX ferries.

In early February 2015 transport minister Derek Mackay responded; "While CMAL's board in line with standard industry practice has a preference for refund guarantees it has on occasion taken alternative approaches to ensure that ship yards, including Ferguson under its previous owners, were not excluded from bidding for those government contracts."

[47][56] On 31 August 2015, First Minister Nicola Sturgeon visited the shipyard and named FMEL as preferred tenderer for the £97m contract,[8] MacKay said it was for dual-fuel ferries, "allowing them to use cleaner fuel and future-proofing them for the advent of tighter regulations around sulphur emissions."

Initially FMEL proposed an unusually small final milestone instalment, reducing their incentive to complete, but on 29 September they increased it to 25%, which with insurance backed guarantee coverage at 25% left CMAL at risk for around half of payments made pre-delivery.

On 9 October TS confirmed that Scottish ministers had noted and accepted the risks and, as CMAL's sole shareholder, approved award of the contracts.

Ministers approved £10.6m loan funding to CMAL, with special provisions to protect against the risks and repayments only due after completed ferries were in service.

[57] In its 2022 report, Audit Scotland said the Builder’s Refund Guarantee (BRG) is "an integral part of shipbuilding contract and is the main source of financial security for a ship buyer", giving the shipbuilder "a significant incentive to build a quality product as the buyer can cancel the contract and claim a full refund of all payments if the ship does not meet its required specification."

The contract "places full responsibility and risk for the design and build of the vessels with the shipbuilder and does not allow the buyer to intervene in the running of the project."

[13] In August 2018, new Cabinet Secretary for Transport Michael Matheson said it had been confirmed that the ship was to be delivered in June 2019, followed by two months of crew familiarisation and sea trials.

The Scottish Government commissioned an independent view in May 2019, and concluded in June 2019 that there was no legal basis for CMAL to pay more than the £97 million fixed price for the contract.

[68] A report issued on 9 December 2019 estimated that, with good progress, Glen Sannox would be handed over to Caledonian Maritime Assets Ltd (CMAL) in the last quarter of 2021, and that completing the two ferries was likely to increase the total cost to over £207 million.

[71] On 10 August 2020, tugs moved Glen Sannox to the Garvel dry dock in Greenock for remedial work including replacement of the bulbous bow, paintwork repair and removal of marine growth.

[73] In October 2022, FMPG announced that Glen Sannox would initially operate only on marine gas oil, as vacuum sensors required for the LNG system were not available.

The work meant that planned sea trials of the Glen Sannox were delayed until the first quarter of 2024, raising doubts over whether the ship will be available for the start of the 2024 summer season.

[23][28] On 18 July the Deputy First Minister of Scotland, Kate Forbes, visited the shipyard to announce plans for Ferguson Marine, and was shown round Glen Sannox at Inchgreen Quay.

Local MSP Kenneth Gibson, who`opposed the move, said Peel Ports had "so far not been the most accommodating in terms of negotiating a multi-million pound investment from the SNP Government".

[88][89] North Ayrshire Council prepared proposals in talks with Peel Ports, whose project director for regeneration of the Harbour said "We are committed to a multi- million pound investment in the marine infrastructure at Ardrossan to improve connections with Arran via the shortest, fastest and cheapest route.These will be bespoke facilities and modern infrastructure specifically designed for the new £48.5m ferry, which will itself dramatically improve docking reliability in poor weather."

[104][105] In January 2025, with Glen Sannox about to enter service, there was still no agreement between Peel Ports, Transport Scotland and North Ayrshire Council on funding the necessary works, the business case review for the Ardrossan harbour development project was still awaited, and the pause continued.

[112] During these trials a problem with her sewage system was discovered, remedial work to this and to a valve affecting a mezzanine deck were completed before she could start carrying passengers.