An agreement to construct tug boats for the Royal Navy base in Portsmouth has drawn significant criticism for its lack of transparency and understanding. The deal, valued at £850 million, is part of a broader 10-year afloat services contract between the Ministry of Defence (MoD) and Serco Maritime, which covers various maritime support operations.
Under this contract, a fleet of 24 vessels will be built by Damen Shipyards in the Netherlands. These tug boats are intended to enhance logistical support for the Royal Navy’s operations from HMNB Portsmouth and two other bases. Guy Barker, Serco’s maritime services director, described the project as “vital,” emphasizing its importance for the MoD’s auxiliary fleet. He noted that Serco and Damen have collaborated for over 20 years.
Concerns Over Local Impact and Transparency
Despite the program’s significance, it has sparked controversy among local unions and workers. Members of the Prospect Union have raised alarms about potential redundancies among dockyard workers in Portsmouth. Negotiations officer Nathan Morrison warned that operations involving vessels such as HMS Prince of Wales could be scaled back, a claim that the Royal Navy has denied.
The contract has also faced scrutiny due to Damen Shipyards’ upcoming prosecution in April 2025 for allegedly breaching Russian sanctions. The Netherlands Public Prosecution Service is pursuing legal action against the company and specific former directors following a lengthy bribery investigation related to its dealings in 2022. Dutch authorities have indicated that the allegations involve “goods and technology that could contribute to the military and technological strengthening of Russia.” Damen has refuted these claims, stating it maintains a “robust compliance organization” that adheres to high anti-corruption standards.
Call for Review and Reform
The tug boat contract has also faced fresh criticism from officials in Scotland. Union representatives from GMB Scotland expressed that the decision to award the contract to an overseas company was made without consulting British shipyards. According to a report from the Sunday Post, no UK shipbuilders were invited to tender for the project. Senior organiser Robert Deavy called for a halt and review of the contract, stating, “It is impossible to understand how a contract like this can be sent abroad without discussion with UK shipyards, unions, or ministers.”
Scottish business minister Richard Lochhead echoed these concerns, urging the government to reform its defence procurement processes to allow more local companies to compete for contracts. In response to the criticism, the MoD stated that Serco is free to establish its own supply chain and that the government has “no legal grounds” to reject Damen as a subcontractor. They further assured that action would be taken if any wrongdoing is proven against Damen Shipyards.
As this situation unfolds, the implications of the contract on local employment and the integrity of the procurement process remain significant topics of discussion.
