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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Caterpillar Named to Dow Jones Sustainability Indices

Caterpillar Inc. has been named to the 2014 Dow Jones Sustainability Indices (DJSI), recognizing Caterpillar as a sustainability leader in the Industrial Engineering sector.

Technip Signs Contract for Refinery Units in Bahrain

Technip was awarded by The Bahrain Petroleum Company (BAPCO) a significant (1) contract on a reimbursable basis to develop the Front-End Engineering Design (FEED)

Oceanearing Exercise Charter Options on DP2 CSV

Oceanteam Shipping ASA says that Oceaneering International, Inc. has exercised both one year options on the CSV 'Bourbon Oceanteam 101' up to February 2017. The

Ports

Port of Long Beach Sees Cargo Numbers Slip

Container cargo shipments declined by 9.1 percent in August at the Port of Long Beach, reflecting both early shipping by importers this year and the comparison

Haze and Reduced Visibility at Singapore Ports

Due to the presence of haze, the Maritime & Port Authority of Singapore Port Marine in their Notice No.113 of 2014 dated 15 September 2014 have informed the

Navy Ocean Services Contracts Awarded to Five Firms

The US Department of Defense inform that five firms are to share in a broad range of ocean engineering services contracts with a combined maximum dollar value of US$99-million.

Finance

Navy Ocean Services Contracts Awarded to Five Firms

The US Department of Defense inform that five firms are to share in a broad range of ocean engineering services contracts with a combined maximum dollar value of US$99-million.

SUNY Maritime Grads Start at Higher Salary: PayScale

What do SUNY Maritime College graduates have that Princeton, Harvard, Yale, and Columbia graduates don’t have?  Higher starting annual salaries; that’s what, answers SUNY.

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Government Update

Haze and Reduced Visibility at Singapore Ports

Due to the presence of haze, the Maritime & Port Authority of Singapore Port Marine in their Notice No.113 of 2014 dated 15 September 2014 have informed the

CAGTC Members Win Big in TIGER VI

The U.S. Department of Transportation (USDOT) announced Friday that 72 projects will receive a total of $600 million from the sixth round of the Transportation

Leaky Equipment, Not Fracking, Behind Tainted US Water -Study

The contamination of water supplies near U.S. shale gas fields appears to be the result of leaky cement wells and casings and not the controversial production technique of hydraulic fracturing,

Ferries

Green Passenger Ferries from Faaborg Vaerft

The first full-electrical passenger ferry in composite is delivered to Ballerina AB in Stockholm, Sweden. Faaborg Vaerft A/S has delivered the first full-electrical passenger vessel,

Video: Vessel Operators Remember 9/11 Heroism

On the 13th anniversary of the terrorist attacks of September 11, America’s tugboat, towboat and barge industry pauses to remember the nearly 3,000 Americans who lost their lives,

Rolls-Royce Propulsion Systems for New Finnlines Ferries

Rolls-Royce says it has won a contract to install its efficient Promas Lite propulsion system on two vessels for ferry operator Finnlines. Promas Lite is an integrated

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.1758 sec (6 req/sec)