WORK will start this month on Ferguson’s first contract since the Port Glasgow shipyard was saved from closure by billionaire businessman Jim McColl.

The order for Caledonian MacBrayne was provisionally announced in September but under European Union procurement rules it could not be confirmed for a month, to allow it to be challenged by other shipbuilders.

But no challenge had been received and the work can now proceed, marking a key milestone in the dramatic rebirth of the yard after it plunged into administration in August.

Bosses and union officials are delighted at the confimation.

Yard shop steward Alex Logan told the Tele: “We expect to start seeing steel being fabricated in the middle of this month.

“This will enable us to hit the ground running for the start of the new year.

“Everything is ticking over well.” The £12 million order is from the Scottish Government to build a third hybrid eco-friendly ferry for CalMac.

It follows the yard’s successful completion of MV Hallaig and MV Lochinvar, the ‘world-first’ hybrid-powered ferries.

The contract was welcomed by the Scottish Government.

A spokesperson said: “This will ensure shipbuilding continues on the Lower Clyde, and provide work and training opportunities for Port Glasgow and the surrounding area.

“The Scottish Government is committed to supporting the development of Ferguson Marine Engineering Ltd into a competitive and sustainable business that can maintain and grow the proud history of Clyde shipbuilding and provide quality jobs and training opportunities for the people of Inverclyde.” Meanwhile, the yard is also chasing a contract for a new Arran ferry for CalMac.

Greenock and Inverclyde MSP Duncan McNeil says Ferguson’s is the obvious candidate for the job, which will be awarded in March.

He said: “I believe the Ardrossan to Brodick ferry would be an ideal follow-up to the work that’s already been placed in the yard.” Union official Mr Logan hopes the yard’s workforce will be boosted if the Arran ferry is secured.

Over 30 workers returned to the yard on Monday of this week.

Seventy employees had lost their jobs when the yard went bust but it was brought back from the brink by Mr McColl.

Thirty of the workers returned in September when the Clyde Blowers supremo completed a rescue package and now, as he pledged, everyone else who wanted their job back has got it.

Mr Logan said: “That’s great news for them and for morale.”