China shipyard to build £200m freight ferries for Northern Isles

A shipyard in China has been awarded a contract to build freight ferries worth £200m to serve passengers in the Northern Isles.

Caledonian Maritime Assets Limited (CMAL) has awarded the contract to build two freight flex vessels to Guangzhou Shipyard International Co., Ltd.

The vessels, which will replace the MVs Helliar and Hildasay on the Aberdeen to Kirkwall/Lerwick route, will have the capacity to carry 200 passengers each during peak times and dry dock periods.

CMAL, the Scottish government-owned ferries procurement body, owns a total of 37 ferries.

Five are leased to Serco NorthLink Ferries for the Orkney and Shetland routes.

The vessels are currently expected to be delivered by 2029, and the estimated cost is around £200m, covering both vessels, CMAL and other project costs.

It is understood that no UK yards bid for the contract.

Transport secretary Fiona Hyslop said: “I am pleased that CMAL has signed the contract to build two freight-flex vessels for the Northern Isles network, and that construction will begin soon.

“We heard clearly from islanders and stakeholders the need for improved freight and cabin capacity on these ferry services.

“The freight-flex vessels will bring additional freight capacity, higher operating speeds and the flexibility to carry up to 200 passengers on each ship at peak times – enhancing the resilience and reliability of the Northern Isles ferry services for years to come.

“I want to thank all parties involved in reaching this key milestone, particularly CMAL and NorthLink, and look forward to following the progress of this important vessel replacement project.”

CMAL chief executive Kevin Hobbs said: “Awarding this contract marks a significant milestone in delivering the replacement vessels for the Northern Isles ferry services.

“These vessels will provide a vital boost to freight capacity and provide a more resilient service for passengers.

“We look forward to working with Guangzhou Shipyard International as detailed design followed by construction is progressed.”

Guangzhou Shipyard International President William Zhou said: “We are truly privileged to partner with Caledonian Maritime Assets Limited and Transport Scotland on this prestigious project.

“We fully recognise the strategic importance of these new freight flex vessels in delivering reliable, efficient, and sustainable ferry services to Scotland’s island communities.

“With nearly three decades of specialised expertise in the ROPAX sector, GSI stands as a globally preeminent shipbuilder, renowned for our commitment to excellence.

“Leveraging our extensive experience, we are dedicated to upholding the highest standards of design, engineering, and delivery – providing vessels that are not only reliable and efficient but also environmentally responsible, and built to the highest quality standards.

“We look forward to contributing to Scotland’s maritime infrastructure and supporting the continued prosperity of its communities through world-class, sustainable transport solutions.”