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Irish Ferries Operating Profits Remain Unchanged at €3.2m

30th August 2012
Irish Ferries Operating Profits Remain Unchanged at €3.2m

#FERRY NEWS- The Irish Continental Group (ICG) ferries division, Irish Ferries has recorded no change in operational profits for the first six months of 2012, compared to the same period last year.

According to its financial interim report, profit from operations was unchanged at €3.2 million (2011: €3.2 million), after a €2.5 million increase in fuel costs. Revenue in the division was €69.5 million (2011: €68.2 million).

Irish Ferries operates passenger and freight ferry services between Ireland-UK and between Ireland and France. In the first six months of 2012, Irish Ferries operated 2,087 sailings in the period, down 2.8% compared to the same period last year.

In the half year the operator reported an increase in total passengers carried of 0.9% at 676,700 while total cars carried in the first half of 2012 were 148,700, down 1.9% on the previous year, but at higher yields. The overall sea passenger market was down 3.3% and the car market was down 7.5%.

On the freight Ro-Ro sector, volumes were down 4.7% to 92,400 units, when compared with the first half of 2011 reflecting the weak economic backdrop. The total Ro-Ro market is estimated to be down about 3% in the six months.

The MV Kaitaki, the former Irish Sea serving Isle of Innishfree (1995/22,365grt), remained on charter to P&O during the period, trading in New Zealand. Since her transfer in 2006, the Dutch built ro-pax has been operating Interislanders' Wellington-Picton service which links the country's north and south islands.

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Jehan Ashmore

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Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!