Channel Ferry Service Given Six-Months Notice

Posted by George Backwell
Friday, June 27, 2014
Cross-channel ferry: Image MyFerryLink

Britain's competition regulator has told Groupe Eurotunnel, the operator of the undersea rail link between Britain and France, it will have to stop operating its separate cross-channel ferry service in the next six months and find a buyer for the ships, confirming a decision it made in May.

Eurotunnel immediately said it would appeal an "absurd" decision, which it said would mean higher prices for consumers and put 600 people out of work.

Groupe Eurotunnel operator started to operate services on the Dover-Calais crossing in 2012 under the MyFerryLink brand when it acquired three ferries from the now-defunct SeaFrance service owned by French railways operator SNCF.

"Eurotunnel will be given six months to stop running services from the date of an order to that effect. It could also find another owner for the MyFerryLink business, if that made MyFerryLink completely independent of Eurotunnel," the Competition and Markets Authority (CMA) said on Friday.

The regulator repeated its justification that with two of the operators on the ferry route running at a loss, the current level of competition was not sustainable and could lead to the exit of a competitor.

As well as Eurotunnel, which operates its vessels under the MyFerryLink brand, Danish ferry operator DFDS and Britain's P&O Ferries also run boats on the Dover-Calais crossing, competing against the rail link for freight and passengers.

DFDS has said it is losing between 8 to 10 million Danish crowns ($1.47-1.84 million) a month as a result of MyFerryLink.

"Today's final report from the CMA is good news for DFDS and our 1,300 employees providing ferry services on the English Channel ... We hope the decision will be implemented as swiftly as possible," Niels Smedegaard, CEO of DFDS said in a statement.

Eurotunnel said in a statement that by removing one competitor from the market, CMA was creating a "de facto monopoly", which will lead to higher prices for consumers and lower revenue for the ports of Dover and Calais.

"The decision by CMA is a denial of the reality of the situation. It penalises the consumer and puts 600 people out of work without any real justification," Eurotunnel's chief executive Jacques Gounon said.

(By Sarah Young and Dominique Vidalon)
 

Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Ports

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

DP World Mulls Senegal Free Zone

DP World  is looking to develop a free zone in Senegal, Chairman Sultan Ahmed bin Sulayem said on Wednesday. Sulayem was speaking at an African investment event in Dubai.

Skangass Builds LNG Terminal in Pori, Finland

With investment support from the Finnish Government of 185 million NOK Skangass has decided to build a new import terminal for LNG. The terminal will be completed in 2016.

Finance

DryShips: Public Offering of Its Senior Secured Notes

DryShips Inc. announced today that it intends to offer senior secured notes due 2017 (the “Notes”) pursuant to its effective shelf registration statement. The Company

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

Government Update

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

Cove Point LNG Export Facility Gets US FERC Approval

U.S. federal regulators on Monday approved construction of Dominion Resources Inc's liquefied natural gas export project in Cove Point, Maryland. Cove Point is the fourth U.

Port Firm Fined £650,000 for Health, Safety Breach

A port operator has today (Monday 29 September) pleaded guilty to health and safety breaches, following the deaths of three crew members of a tug which capsized on the River Clyde in 2007.

Ferries

Interferry’s UN, EU Input on Display in Vancouver

Two major examples of Interferry’s growing influence will be highlighted next week at the global trade association’s 39th annual conference in Vancouver.       CEO

New Assistant Secretary WSDOT Sets Her Priorities

In the latest Washington State Ferries 'Weekly Update' newly appointed Assistant Secretary WSDOT/Ferries Division, Lynne Griffith, sums up as she completes her

Golden Gate Ferry Captains Stage One-day Strike

The Golden Gate passenger ferry system, California's largest, was shut down on Friday by striking boat captains, disrupting service for thousands of San Francisco

 
 
Maritime Careers / Shipboard Positions Maritime Security Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1856 sec (5 req/sec)