UK shipbuilding still in jeopardy

Portsmouth’s shipbuilding yard is due to close this year with BAE Systems transferring all of its operations to the Clyde in Scotland.

But since the announcement was made in November 2013, a consortium called the Portsmouth Shipbuilding Group, has been battling to continue building commercial vessels there using the existing skills base at the yard.

It’s understood that there are a number of interested parties who would like to move into the yard. One player keen to invest in the shipbuilding capabilities at Portsmouth is Martin Wright, managing director of Aurora Ventures Limited, chairman of Mojo Maritime Limited and the Renewable Energy Association.

His company Aurora Ventures plans to build 20 specialist vessels, designed by Mojo Maritime, for the tidal power industry and he wants them to be built in the UK – providing the UK government can provide underwriting to give the project commercial viability.

Mr Wright told Maritime Journal that although the government is making all the right noises and has provided funding through the Technology Strategy Board (TSB), it is “sitting on the fence” with regards to its plans for the yard at Portsmouth.

“We want to build the vessel in the UK but without government underwriting the vessel will be built where there is a guaranteed charter. The trouble is that stalling over a decision on the Portsmouth shipyard means that capability at the yard is ebbing away as we speak,” he told MJ.

German shipbuilder Hammonia Reederei has expressed an interest in building the vessels at Portsmouth – but the indecision over the yard may mean that it goes elsewhere to build – namely France or Dubai.

“The decision to build in Portsmouth will be taken away if we are just left with pigeon loft for a yard. The government needs to stop hedging its bets whether to keep the yard open or not.”

The Scottish Referendum taking place in September may well have a lot to do with a delay in any decision. Scotland obtaining independence will mean that England is left without an admiralty shipyard, something the UK government will be keen to avoid at all cost.

The Mojo HF4 project seeks to change the state of play in tidal marine energy by making it more commercially viable. The vessel will be able to hold its position even in neap tides. No down time means that an operator can keep a constant revenue stream coming in. A project like this would certainly give the Portsmouth yard kudos to secure other commercial contracts.

Mr Wright concluded: “It is important that we keep hold of the Portsmouth shipyard – it’s important both for the economy and for keeping the tidal energy sector alive in the UK.”