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ICG to Sell Chartered New Zealand Based Ferry 'Kaitaki' for €45m

17th May 2017
The 'Kaitaki' Afloat adds was the former Isle of Innisfree, ICG's first custom built tonnage that served Irish Ferries Dublin-Holyhead route from 1995, however the 1,650 passenger/600 car ferry became surplus to operational requirements following delivery of the giant cruiseferry Ulysses in 2001.  The 'Innisfree' from 2002 was chartered initially to operators in Europe before heading to New Zealand waters and most recently to buyers KiwiRail. They operate the 22,000 tonnes vessel on the 'InterIslander' route across the Cook Strait. The 'Kaitaki' Afloat adds was the former Isle of Innisfree, ICG's first custom built tonnage that served Irish Ferries Dublin-Holyhead route from 1995, however the 1,650 passenger/600 car ferry became surplus to operational requirements following delivery of the giant cruiseferry Ulysses in 2001. The 'Innisfree' from 2002 was chartered initially to operators in Europe before heading to New Zealand waters and most recently to buyers KiwiRail. They operate the 22,000 tonnes vessel on the 'InterIslander' route across the Cook Strait. Credit: ICG

#FerrySell - Irish Continental Group (ICG) parent company of Irish Ferries, revealed today it has agreed to sell the €45 million sale of a passenger ferry to a New Zealand company, KiwiRail, as the Irish group reported that its revenues for the first four months for the year grew 4 per cent.

As the Irish Times reports the ferry, Kaitaki built in 1995 and previously operated under names including the Isle of Innisfree and Pride of Cherbourg, has been on charter outside ICG since 2002, most recently to KiwiRail.

The disclosure came in a trading update issued by ICG ahead of its annual general meeting in Dublin. “We consider €45 million for this 21-year-old vessel to be an attractive price,” said analysts at Investec in Dublin in a note to clients, adding that it will leave the group with net cash on the balance sheet.

ICG’s latest trading statement said that consolidated group revenue for the first four months of the year came to €95.1 million, up 4 per cent on the year, while net debt fell to €24.5 million from €37.9 million at the end of 2016.

For the year to May 13th, ICG’s Irish Ferries carried 103,200 cars, a decrease of 0.7 per cent on the same period last year, while roll-on, roll-off (RoRo) freight volumes fell by 1.7 per cent.

For more on the story, click here.

Published in Ferry
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!