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MY FERRY LINK - Latest updates

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Re: My Ferry Link - Updates

 

Eurotunnel have withdrawn from their bid to run Calais and Boulogne (no doubt in response to the competition concerns):

 

Eurotunnel withdraws interest to run the ports of Calais and Boulogne

 

Eurotunnel will not be bidding to run the ports of Calais and Boulogne-sur-Mer leaving the incumbent operator, the Côte d’Opale Chamber of Commerce, as the sole candidate.

 

The deadline to tender for the new 50-year management concession, issued by the Nord Pas-de-Calais Regional Council, which owns the two French Channel ports, passed on 19 March without Eurotunnel making a bid.

 

Contacted by Lloyd’s Loading List.com, a Eurotunnel spokesperson said: "We expressed a strong interest (in running the ports) and remain committed to working with the Regional Council, the port of Calais and perhaps public and private sector investors too, in order to better co-ordinate efforts to develop Calais.and Boulogne."

 

In January, Lloyd’s Loading List.com reported that Eurotunnel had made a preliminary submission to run Calais and Boulogne.

 

A Eurotunnel spokesperson said at the time: “Our candidacy is a logical step in the development of the group as we already manage infrastructure in the form of the 50km Channel Tunnel. Calais is an important traffic hub and we would bring a new vision of port management from a private sector perspective and one focusing on development."

 

Speaking in the Voix du Nord newspaper, the president of the Régional Council, Daniel Percheron, played down suggestions that Eurotunnel’s decision not to submit a bid to run Calais and Boulogne reflected an unwillingness to work with the Côte d’Opale Chamber of Commerce.

 

"Eurotunnel has a winning strategy and it’s possible it feared that in the event of being awarded the concession would raise questions of a cross-Channel monopoly position. Who knows? But there’s a strong chance that Eurotunnel and the Chamber will end up co-operating."

 

Eurotunnel’s interest in running the two ports had drawn a swift riposte from P&O Ferries. It warned that Eurotunnel taking the reins at Calais would represent a very serious conflict of interest, raising competition and regulation issues.

 

Last month, P&O Ferries CEO, Helen Deeble, penned a seven-page letter to the UK’s Office of Fair Trading claiming the award of the concession to Eurotunnel would “likely result in a substantial lessening of competition in the provision of shortsea transport services between the UK and France.”

 

She called on the OFT to carry out an investigation.

 

Commenting on the latest development, P&O Ferries’ spokesman, Chris Laming said: "We’re pleased to hear that Eurotunnel appears to have had a change of heart and it’ll be interesting to find out what the rationale is for its decision."

 

Source: Lloyds List

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Re: My Ferry Link - Updates

 

The advertisement on the back page of this months France magazine indicates, below Myferrylink, "Owned and run by the crew". Which part of the ships does this refer to ?

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Re: My Ferry Link - Updates

 

As far as I understand, the company is "owned and run by the crew". The ships are leased, not unusual for a ferry company.

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Guest CaptainPugwash

Re: My Ferry Link - Updates

 

For some ferry operators to be complaining over the potential predatory action of eurosewer is a little rich when you consider some of their actions in putting Speedferries out of business.

 

As an aside, for a maritime nation, those who have allowed the decimation of our Merchant Navy to the point that our former flag carrier is now owned by an Arabic Country and that our ports are being systematically purchased by the French, need to hang their heads in shame.

 

The reality of the situation is that we don't have control over what does or does not happen any more and we really just have to hope that our lords and masters in other Countries share the same viewpoint. If they don't, we're screwed.

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Re: My Ferry Link - Updates

 

For some ferry operators to be complaining over the potential predatory action of eurosewer is a little rich when you consider some of their actions in putting Speedferries out of business.

 

As an aside, for a maritime nation, those who have allowed the decimation of our Merchant Navy to the point that our former flag carrier is now owned by an Arabic Country and that our ports are being systematically purchased by the French, need to hang their heads in shame.

 

The reality of the situation is that we don't have control over what does or does not happen any more and we really just have to hope that our lords and masters in other Countries share the same viewpoint. If they don't, we're screwed.

 

That'll be the day we worry less about money and more about the sustainability of our industries :(

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Re: My Ferry Link - Updates

 

The Competition ruling will be announced tomorrow 4/12th. DFDS are to make an announcement later in the day.

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Re: My Ferry Link - Updates

 

The tribunal has ruled in favour of Eurotunnel/My Ferry Link. They will continue to operate on the Dover Calais route.

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Re: My Ferry Link - Updates

 

No-one has won here, this is simply a stay of execution.

 

From reading the 150 page document, the appeal tribunal dismissed each and every challenge made by Eurotunnel and the SCOP. The findings were correct in that Eurotunnel/SCOP are one and the same and are not separate entities.

 

The only reason that Eurotunnel/SCOP can continue to operate is because of the final paragraph of the findings "However, we unanimously find that the question of whether the Commission has jurisdiction in this case must be remitted to the Commission for its reconsideration. The question is whether this is a case of two enterprises ceasing to be distinct within the meaning of section 26(1) of the Act, such that a relevant merger situation arises within the meaning of section 35(1)(a) of the Act. We consider this question to be an open one: our detailed reasoning is set out in Section II above. Accordingly, and for the reasons given in Section II above, we remit to the Commission the question of whether Eurotunnel/SCOP acquired an “asset” or an “enterprise”. To this extent, and for that reason alone, we unanimously quash the Decision."

 

This could still go either way next year once the Competition Commission has answered the above question.

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Re: My Ferry Link - Updates

 

The SeaFrance / MyFerryLink saga appears to never end...!

 

Good news for the crews, the ports and for passenger choice, but allowing the uncertainty to continue isn't doing anyone any favours in the long run.

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Re: My Ferry Link - Updates

 

The question is whether this is a case of two enterprises ceasing to be distinct within the meaning of section 26(1) of the Act, such that a relevant merger situation arises within the meaning of section 35(1)(a) of the Act. We consider this question to be an open one: our detailed reasoning is set out in Section II above. Accordingly, and for the reasons given in Section II above, we remit to the Commission the question of whether Eurotunnel/SCOP acquired an “asset” or an “enterprise”. To this extent, and for that reason alone, we unanimously quash the Decision."

 

A nice distinction and one which, obviously has to be assessed.

 

However it should have concluded "... an “asset” or an “enterprise”. However we find that any entity, no matter how established or composed, stupid enough to come up with a name like My Ferry Link does not deserve to survive and therefore we find against them!"

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Re: My Ferry Link - Updates

 

Niels Smedegaard, CEO DFDS

 

"There were 11 conditions that the British Competition Commission had to deal with before. Now there's just one, and we are confident that the British Competition Commission will do a good job in this case. Fortunately, developments in the English Channel are going the right way and we're conquering market shares."

 

Surely the last section undermines their initial argument that this would force DFDS out ?

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Guest CaptainPugwash

eurosewer

 

I don't know if this is new news or not, but according to a source in the transport industry, eurosewer won another hearing today about their operation of ferries and now this has been referred back to the CC.

 

The question at stake at the moment seems to be whether the CC has jurisdiction in this case.

 

Given how the Franci-German Empire t/a the eu seems to love poking its nose into commercial matters, I wonder whether they will do so here- given that the eu seems to love this damned tunnel.

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Re: eurosewer

 

Ah Captain, not sure of your stance re-Eurotunnel involvement in MFL, thought you were an MFL supporter ? Or just against Eurothing involed with MFL ? Either way once politics are running the show all commercial sense goes out the window, though I can not see a time when there is no French connection for the short sea route, again the local politics would not allow it

Ps im not looking for an argument:o!

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Guest CaptainPugwash

Re: eurosewer

 

Peter

I am pro-MFL (I wouldn't use them personally, but I am very much committed to the free enterprise economy (a nod of course to TT there).

 

I do not at all approve of eurosewer abusing their highly unusual financial position(*1 *2) to artificially distort the DoCa ferry market. I see the two issues as very different.

 

*1 For a company that is still heavily in the red overall, they seem to be spending a lot. Not implying anything improper, but still seems highly unusual to say the least.

*2 Whether or not they have set out to distort the ferry market I can not say. But I would say de facto that they are and I eagerly await the outcome of the next inquiry.

 

The inquiry being escalated to euro level will surely come down in favour of their beloved railway- especially considering that there is soon to be no British ownership of shares of either the tunnel or the star (except I imagine the golden share of HMG)

 

Also, Peter, I don't agree with everything you say (and vice versa) but I read your comments with great interest (even when you are wrong!!) and thus do not intend to argue either. I think you just wrote similar to me, but you refrained from the provocative language that I used.

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Re: eurosewer

 

*1-If I was a share holder I would not be too happy with large amounts of money being chucked at MFL

 

*2-I believe they saw an opportunity to muddy the waters of the short sea ferry route, and it has to be said, played a good hand which no one really saw coming.

 

As you say the powers that be at euro level will back them, though in the end they did dump Seafrance, but of course backed a re-born Seafrance!

 

Will be intresting to see how DFDS react when and if the various commissions decide MFL can continue, did hear a rumour locally that on the dov/cal route they are losing a LOT of money.

 

P&O will continue with a 5 ship operation for the medium term I believe, with the Burgundy reverting to a three trip schedule after the refit period.

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Re: eurosewer

 

I don't know. I imagine the shareholders are rather pleased to see revenues at MFL grow from 7m to 74m euros in a year and the group revenue as a 'hole' hit 1bn after a 12% rise ! Source

 

Seems the decision to launch MFL is working. Less lorries through the tunnel so perhaps they are going to focus on the tourist traffic ?

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Re: eurosewer

 

I don't know. I imagine the shareholders are rather pleased to see revenues at MFL grow from 7m to 74m euros in a year and the group revenue as a 'hole' hit 1bn after a 12% rise ! Source

 

Seems the decision to launch MFL is working. Less lorries through the tunnel so perhaps they are going to focus on the tourist traffic ?

 

I think the arguments of CP and Peter illustrate very well the point that's been raised in the past on this subject. The Central European "way" of preserving economic interest is often based on more interventionist principles compared to Anglo-Saxon perspectives. Often, these are indirect so that they try to avoid legal obstacles such as that horror word, "subsidy". Reference MFL and the "vehicle" that was used to "save" / "support" / "rescue" / "keep alive" / "make it work" / "maintain pride" / "keep a presence", etc; it's a quiz - so use whatever word or phrase you prefer.

 

Maybe the gambit will pay off, there's just the hurdle of the UK regulator to deal with. I did think at the time though that it was an awful gambit for a company with such a checkered financial record where it seemed that principle or pride got in the way of judicious use of other peoples money...

 

I suppose the EU likes the tunnel because it represents green infrastructure and that's sexy these days. Oh whilst I'm at it, CP, regards your expressed views on that great institution that is the EU and their meddling in business and everyday lives (read above to understand why), don't you think that our cousins across the pond are even worse ? (worse of course being relative to one's perspective :)). Oops sorry that's two posts in one :$

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Re: eurosewer

 

I don't know. I imagine the shareholders are rather pleased to see revenues at MFL grow from 7m to 74m euros in a year and the group revenue as a 'hole' hit 1bn after a 12% rise ! Source

 

Seems the decision to launch MFL is working. Less lorries through the tunnel so perhaps they are going to focus on the tourist traffic ?

 

Revenues may be growing but does that translate into profit ?

My major gripe is Eurotunnel should not be involved with the short sea route, the ferry operators are not allowed access to the tunnel as Eurotunnel have a single user agreement so why should they be allowed to muddy the waters of the ferry operators? You would hear the screams of anger if P&O and DFDS were allowed to start running trains !!

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Re: eurosewer

 

Revenues may be growing but does that translate into profit ?

My major gripe is Eurotunnel should not be involved with the short sea route, the ferry operators are not allowed access to the tunnel as Eurotunnel have a single user agreement so why should they be allowed to muddy the waters of the ferry operators? You would hear the screams of anger if P&O and DFDS were allowed to start running trains !!

 

And DFDS/LD do not receive a single penny of public money while running motorway of the seas and Transmanche?

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Re: eurosewer

 

Could we keep news/discussion of the MFL/Eurotunnel issue on this one thread please - if nothing else for coherence.

 

Maybe the gambit will pay off, there's just the hurdle of the UK regulator to deal with.

 

What hurdle is that? Once they allowed Tesco to purchase T&S stores they showed just what their attitude to competition really was!

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