Struggling SNCM Ferry Operator to Order 4 Ships

MarineLink.com
Friday, March 07, 2014
Photo: SNCM

Reuters - Loss-making France-Corsica ferry operator SNCM, which is partly owned by French water and waste group Veolia Environnement, plans to order four new ships, an SNCM spokesman said on Friday.

The spokesman said the board had approved deals for four new ferries, two of them firm orders and two of them purchase options, to renew the fleet as part of a restructuring plan for the firm.

He did not provide details on the vote or explain how the ferry operator plans to finance the purchases, with each ship estimated to cost 150 million to 170 million euros.

Last year, the European Commission ordered France to recover 440 million euros ($610 million) in state aid from the long struggling ferry operator, which has threatened the survival of a business the government is eager to rescue.

France has appealed the order.

Veolia, the company's main private shareholder, has said it will not put new money into SNCM and will not be held liable for repaying the subsidies.

SNCM is 66 percent-owned by Transdev, a public transport joint venture between Veolia Environnement and state-backed bank Caisse des Depots (CDC), while the state owns 25 percent and its employees 9 percent.

A Transdev spokeswoman refused to say how Transdev's members on the SNCM board had voted. Veolia declined comment.

A source familiar with the situation said that for the board to approve the acquisition, the representatives of the state, the staff and the CDC would all have had to vote in favour.

At a Feb. 25 SNCM board meeting, in which government representatives abstained as they waited for additional information, Transdev had opposed the ordering of the four ships.

"Transdev and Veolia will not support any further financing of SNCM, because the restructuring plan is not viewed as credible," Veolia said in a statement last week.

Veolia added that it was ready to divest its 66 percent stake in SNCM for a symbolic price and abandon its claims on SNCM in order to facilitate its recovery.

($1 = 0.7214 euros)

(Reporting by Jean-François Rosnoblet in Marseille and Geert De Clercq in Paris; editing by Jane Baird)

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

Shipbuilding

Yang Ming Extends Charter Terms for Five 14,000-TEU Ships

Seaspan Corporation announced today that Yang Ming Marine Transport Corp., has confirmed the term of the fixed-rate time charters for the five 14000 TEU SAVER

ESAB Boasts Over a Century of Technological Innovation

September 2014 marks the 110th anniversary of ESAB Welding & Cutting Products. A world leader in welding and cutting technology, with the broadest, most complete

Breakthrough for Very Large Ethane Carriers

Hartmann Schiffahrts Gmbh & Co. KG, Jaccar Holdings, HB Hunte Engineering and DNV GL, signed a letter of intent for the classification of five ECO STAR 85k very large ethane carriers.

Finance

Deal to End Lockout at Canada Uranium Mine

Canadian uranium producer Cameco Corp and the United Steelworkers union, which represents 535 workers at the world's largest uranium mine and a nearby mill,

Oil Refiner Bound to Goldman, Deutsche Fee Agreements - NY Judge

CVR Energy Inc is bound by agreements to pay Goldman Sachs Group Inc and Deutsche Bank AG more than $36 million in fees and expenses stemming from billionaire

Short-Term U.S. Energy Outlook

The U.S Energy Information Adminstration have provided projections in their short-term Energy Outlook. The highlights are as follows: Highlights     *

News

Gazprom Scraps Plan to Cut Gas Deliveries

Russia's Gazprom scrapped a plan to cut gas exports to Romania by 9 percent on Saturday and by 5 percent on Sunday, Romania's Energy Minister Razvan Nicolescu said.

Poland Received Less Gas Than Requested from Gazprom

Poland's gas pipeline operator Gaz-System said the country received about 20 million cubic metres of natural gas on Friday from the eastern direction, less than

China Aug Power Output Falls First Time in 4 yrs

China's power output, a bellwether for economic activity, posted its first annual decline in more than four years in August, adding to evidence that the world's

Ferries

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

WFSA Ferry Design Competition: University Team Wins

The World Ferry Safety Association (WFSA) has announced the results of its Second Annual international student design competition for a Safe Affordable Ferry. The top prize of $5,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Salvage 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: 0.1563 sec (6 req/sec)