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The Cemre Shipyard: Why are the ferries being built in Turkey and not Scotland?

Publication: The Illeach

The Ileach takes a look at the Turkish shipyard in which the two new ferries are currently under construction.

The MV Isle of Islay and the MV Loch Indaal side by side at Turkey’s Cemre Shipyard
The MV Isle of Islay and the MV Loch Indaal side by side at Turkey’s Cemre Shipyard

On publication of each issue of the Ileach, we place an A3 copy of the cover in the front window of the office, a recent edition of which featured the launch of the MV Loch Indaal from the Cemre Shipyard in Yalova, Turkey. A few days later, a couple of onlookers were overheard questioning why the ferries were being built in Turkey and not in Scotland (despite the Finlaggan having been built in Poland)? So we thought we’d take a closer look at the yard that is currently building the two new ferries for the Islay/Jura route.

Turkey (Türkiye) is a peninsula surrounded by the sea on three sides, a country that celebrates six centuries of shipbuilding experience. The Haliç Shipyard, the world’s oldest operating shipyard, which has stood for over five and a half centuries, continues to contribute to maritime activities in Istanbul. 

Established where the Sultan’s ships were once transported overland to the sea, the Haliç shipyard was the first where modern science was applied during the reign of the Ottoman Empire. Following such innovation, the Turkish method of shipbuilding has become synonymous with quality work, technological developments, modern building techniques, and highly skilled engineers. And, with the rise in demand for ever widening trade networks, commercial vessel routes are set to Turkey for maintenance and building. Within the niche segments of passenger, offshore, and fishing categories, Turkish shipbuilding has become highly successful.

Yalova, in the south of Istanbul, is the centre of Turkish shipbuilding, with several yards extending quite some distance along the coast. A visit to the Cemre Shipyard in March this year, demonstrated the size and industriousness of the company. So how long has the shipyard been in business and how many separate facilities contribute to the size of the company?

According to İrem Ünal, the Cemre Shipyard traces its origins back to 1996 when three business partners founded Cemre Engineering, a painting and blasting company. By 2005, the company had achieved significant success, allowing it to evolve and enter the shipbuilding market as Cemre Shipyard.

“The shipbuilding journey began with the delivery of the very first vessel in 2006 and Cemre constructed its first shipyard area in Yalova in 2007. Since then, the company has continued to grow and expand, further establishing its presence in the industry. The shipyard now operates modern production facilities with three shipyard areas, covering a total of 179,500 square metres.” 

Aside from the four identical ferries under construction at present, there was prominent evidence of several other vessels being built simultaneously. Industry at that level requires a great deal of personnel, so how many are employed at Cemre?

İrem told the Ileach that they employ a core team of over 750 full-time staff, with more than 175 highly skilled engineers, primarily consisting of naval architects. However, including subcontractors, the total number of workers entering the shipyard on a daily basis is between 3,500 – 4,000.

“Located in Altinova, Cemre hosts a significant workforce, contributing to the local economy with employees travelling not only from the surrounding area but various other cities.” 

During our visit to Turkey, it was implied that Turkish law requires that the shipyard provide its workers with a healthy meal each workday. If so, that must surely require a sizeable catering facility?

“Turkish labour law does not explicitly require businesses to provide a meal for each workday. Nonetheless, it is common for companies to offer meal allowances or meal cards, or to provide meals within the company premises as part of their employee benefits. These practices are usually defined by collective agreements or company policies rather than legal requirements.

“At Cemre Shipyard, a healthy meal is served twice daily; once for lunch and once for employees working overtime, including customer and supplier representatives who are present at the yard. These meals are meticulously planned to meet calorific requirements and provide high nutritional value, supporting the well-being and productivity of all employees.”

But before any shipbuilding commences, it’s necessary for the shipyard to tender for the contracts on offer, such as the four CMAL vessels. Given the size and complexity of modern ships, how does Cemre calculate how long it will take to build a boat like the MV Isle of Islay, and how much it will cost?

“The passenger ferry MV Isle of Islay was a design-and-build tender, commencing with the conceptual design phase. Following the tender process, the selected shipyard collaborates with its chosen design partner to develop an advanced, tailored design utilizing innovative solutions to meet the project’s specific requirements. This comprehensive approach ensures the vessel meets all necessary standards and customer expectations.

“The project involves multiple phases, each carefully managed to ensure precision and quality throughout the design, construction, commissioning, and sea-trial stages.

“‘Design & build’ projects, such as the MV Isle of Islay and MV Loch Indaal feature a longer design phase than other projects. Designers create detailed plans and specifications for the vessel, a process that can take from several months to a year, depending on the complexity and size of the vessel.

“Construction can then begin once the design has been finalised and approved by the customer. The time to build a vessel depends on various factors, such as its size, the complexity of its systems, equipment delivery times from manufacturers, the shipyard’s workload, and the available workforce. Therefore, the building period is vessel-specific, with each project being considered on a case-by-case basis, taking into account its unique features.

“The commissioning phase can take from several weeks to a few months, depending on the vessel type under consideration. During this time, thorough testing and integration of various systems are conducted to ensure they meet operational and safety standards. Delays in resolving issues identified during testing can prolong this phase.

“Finally, sea-trials are a critical part of the commissioning process. These involve testing the boat in real-world conditions to verify its performance and functionality. Unforeseen issues discovered during sea-trials may require additional time to address before the boat can be deemed ready for delivery.

“The total cost of the vessel consists of several expenses, including materials, labour, equipment, and overhead expenses. Cemre uses historical data, experience, and cost estimations from vendors to determine the overall price submitted to the customer. It is also crucial to account for unexpected costs that may arise during construction.”

So to summarise, estimating the time and cost of building ships such as the Islay Class vessels involves careful planning, detailed design, efficient construction management, and accurate cost estimation based on industry standards and specific project requirements. Tasks with which Cemre seems very well equipped to deal.

More recently, environmental concerns have undoubtedly changed the nature of shipbuilding, particularly with regard to the motive power of modern-day vessels It’s not hard to imagine that it’s more difficult to construct vessels such as the four Scottish ferries, relying as they will on diesel/electric engines. Or is this more common nowadays?

“Constructing vessels that rely on diesel/electric systems,” said  İrem, “presents unique challenges compared to traditional systems. However, it has become increasingly common in modern shipbuilding due to various factors. As environmental regulations become stricter, there is a growing emphasis on reducing emissions from marine vessels.

“Dual-fuel systems and diesel/electric concepts offer flexibility by allowing vessels to operate on cleaner fuels like Liquefied Natural Gas (LNG), Methanol or lower-emission diesel-electric configurations. We have to ensure compliance with the regulations during construction.

“Building vessels based on diesel/electric configurations like the MV Isle of Islay, or with dual-fuel systems, can be more challenging, however, advancements in technology and engineering practices have made it more common and feasible. The benefits of reduced emissions, improved efficiency, and operational flexibility often outweigh the challenges, making dual-fuel propulsion and diesel-electric concepts a preferred choice for modern shipbuilding, including the four ferries and other maritime applications.”

During our March visit to Istanbul, there was evidence of several other large vessels also under construction, so we asked İrem, on average, how many vessels were under construction at Cemre at any given time and how many they’d built in total?

“In our nineteen years of existence, 87 vessels have been delivered and a further 15 projects are currently under construction.”
And does Cemre specialise in building large ships or does the order book feature all types and sizes of vessel?

“We have the capability and experience to construct a wide variety of ships, including passenger vessels, offshore support vessels, fishing vessels, and others, each incorporating unique and pioneering features. We meticulously consider all aspects of vessel construction, including onboard complexity, technological features, and dimensions, which are crucial parameters in our decision-making process.”

İrem emphasised that Cemre specialises in the construction of innovative, environmentally friendly, and groundbreaking vessels and is passionately committed to pushing the boundaries of maritime engineering by undertaking the construction of these types of projects.

Technology, to paraphrase, waits for no man, even over the course of the last 19 years, so presumably the nature of shipbuilding has changed a lot over the years?

“Shipbuilding,” said İrem, “as a major industry, requires the participation of many organisations. Nowadays, there is a higher demand for more effective and environmentally-friendly vessels compared to previous ones. Consequently, all of these organisations have evolved their mentalities and improved their practices to adapt to the new era of the shipbuilding industry.

“The development of new technologies, green-fuel concepts, autonomous vessel concepts, and battery applications projects this transformation. The core idea is to reduce the global shipping industry’s impact on global warming, promoting sustainability throughout the supply chain to safeguard future generations and preserve nature.

“Additionally, governments and other authorities are preparing strict legislation to reduce the environmental impacts of the industry.

“In light of these developments, it is important to mention that these advancements are key to enabling a more sustainable future. Therefore, as an industry partner with a green vision, seeing this progress and being part of the transformation, is a source of pride for Cemre.”

There was little doubt over the work ethic on display In Turkey as a whole, but particularly within the shipyard. Lynn, Frazer and Garry would doubtless testify to that. We enquired if Cemre’s order books were full for the foreseeable future?

“Cemre’s current production line consists of passenger, offshore, aquaculture and fishing vessels in different size and types, and featuring high-end technological solutions onboard. The market is evolving for more futuristic and ‘green’ solutions for the newbuilding industry, and inline with this strategical trend, we are expecting higher demand on the renewable and offshore segment and zero-to-low emission passenger vessels for the following period.”

Duncan Mackison, interim CalMac CEO, said: “We are looking forward to these new vessels joining the CalMac fleet. Their addition will increase resilience and will also significantly increase the number of passengers and vehicles we can carry on the Islay route.”

CMAL CEO, Kevin Hobbs told the Ileach, “Shipbuilding is extremely complex and takes careful planning, but in the main it is about dealing with and working collaboratively between organisations to deliver a first-class product. The relationship between CMAL and Cemre is strong, and we are working together every day to achieve the ships that will serve the island communities for many years to come.

“Every project, however, faces challenges, and it is no different at Cemre. The challenges to date have been managed, have nevertheless had an impact, but are being worked through diligently.

“The steel had to be sourced from China when the normal supply chain was interrupted with the Ukraine War. The steel plant at Mariupol was effectively raised to the ground by bombardment from Crimea. There was the devastating earthquake in Eastern Turkey that took tens of thousands of lives – many of whom were relatives of the workforce at Cemre and the wider Yalova area.

“Also, the incursions in the Red Sea means that much of the main equipment and steel is routing around the Horn of Africa, adding weeks to journey times. What we can say with confidence is that our partners at Cemre remain totally committed to delivering excellent ships for Scotland. The working relationship is strong with a ‘can do attitude’ from all sides. We hope that there are no more curve balls but if there are, we will work to resolve them with the good people at Cemre. 

“We are now entering the most complicated period, with the commissioning of equipment and proving the systems as they installed. This leads to sea-trials and thereafter, delivery. The teams are working every day to make maximum progress towards ultimate delivery. The outlook remains positive but there’s much work still to be done.”

Though it would  be inappropriate to comment on the problems experienced with CMAL’s two Clyde-built ferries, apportioning Islay and Jura’s two ferries to Turkey, along with their two sister vessels, seems like it was perfectly justified.

Thanks also to Jim Anderson and Brian Fulton of CMAL for assistance with this article.