Displaying items by tag: Brexit ferry fiasco

27th April 2019

Operator P&O Sues UK Government Over £33m Eurotunnel Payout in Brexit Ferry Fiasco

Rival operators DFDS and P&O Ferries berthed at the Port of Dover

#ferries- Operator P&O Ferries is suing the UK government over its £33m settlement with Eurotunnel, in the latest controversy over the Department for Transport’s (DfT) fraught no-deal Brexit preparations.

As writes The Guardian, the department was forced into the £33m payout after failing to include Eurotunnel in its agreements with ferry operators to provide emergency cross-Channel services, including the scrapped contract with Seaborne Freight. (Afloat adds see related Arklow Shipping story).

The DfT had signed deals worth £89m with Brittany Ferries and DFDS to secure routes for vital goods in the event of no deal, with forecasts of massive congestion on the routes to Dover and Calais where most freight traffic flows.

Now P&O is contesting the compensation awarded to Eurotunnel, claiming it leaves its ferry service facing an unfair disadvantage.

Further reading on the story can be read here.

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UK Government Pays Eurotunnel £33m Over Brexit Ferry Case

Unlike Seaborne, Eurotunnel had actually run a cross-Channel ferry service MyFerryLink, which closed in 2015.

#ferries - The UK government the BBC reports, will pay £33m to Eurotunnel in an agreement to settle a lawsuit over extra ferry services in the event of a no-deal Brexit.

In December, the Department for Transport (DfT) contracted three suppliers to provide additional freight capacity on ferries for lorries.

But Eurotunnel said the contracts were handed out in a "secretive" way.

As part of the agreement, Eurotunnel has agreed to make some improvements to its terminal.

One of the firms awarded a ferry contract, Seaborne Freight, has already had its deal cancelled after the backing of an Irish company (Arklow Shipping) pulled out.

Shortly after it was awarded the contract, the BBC found out that Seaborne had no ships and had never run a ferry service.

Transport Secretary Chris Grayling has been heavily criticised for the Seaborne deal, which would have been worth £13.8m.

In January, Eurotunnel wrote to Mr Grayling to complain that it had not been considered when the contracts were awarded.

It argued that unlike Seaborne, it has actually run a cross-Channel ferry service (MyFerryLink, which closed in 2015) and should have been approached.

For much more on the Eurotunnel settlement relative to the Brexit ferry fiasco, click here.

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About the Loughs Agency

The Loughs Agency is a governmental body established under the 1998 Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland. The Agency's goal is to provide sustainable social, economic, and environmental benefits by effectively conserving, managing, promoting, and developing the fisheries and marine resources of the Foyle and Carlingford areas.

The Agency's governing legislation confers several specific functions, including the promotion of development of Lough Foyle and Carlingford Lough for commercial and recreational purposes in respect of marine, fishery, and aquaculture matters. Moreover, the Agency is responsible for managing, conserving, protecting, improving, and developing the inland fisheries of the Foyle and Carlingford areas. Additionally, the Agency has the task of developing and licensing aquaculture, as well as the development of marine tourism.

The Loughs Agency reports to the North South Ministerial Council and its government Sponsor Departments, the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland, and the Department of the Environment, Climate, and Communications (DECC) in Ireland. The Departments fund the Agency on an equal basis.

The Loughs Agency's focus on sustainable development is expected to have a positive impact on the economy, environment, and local communities in the Foyle and Carlingford areas. The Agency's efforts to conserve and enhance the region's marine resources, including fisheries and aquaculture, are expected to benefit local communities, promote tourism, and contribute to economic growth.

In conclusion, the Loughs Agency plays a vital role in promoting the sustainable social, economic, and environmental development of the Foyle and Carlingford areas. Its work on marine conservation and development is crucial in ensuring the long-term viability of the region's natural resources and in promoting sustainable economic growth.