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Shipyard Harland & Wolff’s Botched Venture With Isles of Scilly Ferry Subsidiary Collapsed Owing £3m

19th November 2024
Harland & Wolff (Scilly Ferries) Ltd—to give its full name, Afloat adds—was a new subsidiary of the famous shipbuilder that was set earlier this year by the firm’s former management. Ultimately it was wound down before a single voyage was ever made between Penzance, Cornwall, and St Mary’s, the largest of the five inhabited islands off south-west England.
Harland & Wolff (Scilly Ferries) Ltd—to give its full name, Afloat adds—was a new subsidiary of the famous shipbuilder that was set earlier this year by the firm’s former management. Ultimately it was wound down before a single voyage was ever made between Penzance, Cornwall, and St Mary’s, the largest of the five inhabited islands off south-west England. Credit: Harland & Wolff -twitter

Shipyard group Harland & Wolff’s botched venture into the ferry sector, reports CityFM, showed it owed more than £3m to creditors after it collapsed earlier this year into administration, filings have revealed.

Its subsidiary, Harland & Wolff (Scilly Ferries) Ltd, was set up by the Belfast-based shipyard’s former management, but the launch of its passenger-only fast-ferry service in May was repeatedly pushed back as the company faced ongoing financial crises. However, ultimately the operator that opened an office on St. Mary’s, Scilly, was wound down, and so not a single voyage took place by the fast ferry, the Atlantic Wolff along with a smaller RIB craft, the Atlantic Express as Afloat, also previously highlighted from the operators’ social media.

Such an investment into the sector had raised eyebrows from industry observers from the get-go, given Harland & Wolff had no prior ferry operating experience. In addition, it had already been spurned for a ferry contract to replace the Scilly Isles’ existing 48-year-old ferry, Scillonian III, and also separate plans to build their own tonnage and service. The veteran vessel runs to and from Penzance, Cornwall, by the long-established Isle of Scilly Steamship Co. which, as Afloat also reported, had rejected the proposed takeover.

According to documents filed with Companies House, they now reveal that Scilly Ferries owed more than £3m to creditors when it collapsed. Furthermore, separate filings previously revealed by parent company Harland & Wolff showed it owed more than £160m when it entered into administration.

In the first month of when Scilly Ferries’ had planned its summer launch that was delayed in May, Harland & Wolff notably paid for a helicopter firm to provide an alternative transport. The offer was made to disgruntled passengers a replacement service, City FM has learned and has further coverage of this story.

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!