Trade slump puts stop to ferry investment

Oct 1 2008 by Barry Turnbull, Liverpool Daily Post

PLANS to invest millions of pounds in Irish Sea shipping services from Birkenhead have been scuppered by the economic downturn and rising costs.

Norfolkline has been hit by a recession in Ireland, rising fuel costs, and a backdated business rates bill which is likely to soar into millions.

The roll-on/roll-off ferry operator was planning massive investment in new vessels with a view to increasing freight capacity by 70% and passenger traffic by 25%. But a slump in trade affecting Norfolkline’s four vessels serving Belfast and Dublin from Birkenhead’s Twelve Quays has changed all that.

And Coastal Container Line, part of Peel Ports Liverpool operation, is axing its Cardiff to Dublin service with the loss of 34 jobs. Its container business between Liverpool and Ireland is unaffected.

But it is not doom and gloom for everyone. Ferry company Seatruck says it plans to cash in on the situation by doubling capacity from Liverpool to Ireland. Its vessels only offer unaccompanied freight movements, thus saving on drivers’ costs.

Paul Woodall, route manager for Norfolkline since May, said: “There were big plans, but in the current economic climate things are looking pretty grim. The impact has been direct and volumes are down.

“A number of factors have all come together. Recession has affected the market in Ireland, fuel costs continue to fluctuate and we, along with many businesses, face huge backdated rates bills.

“The revaluation of rates could literally cost us millions and this will have to be passed on, there is no other way. And if transporting goods costs more this will be reflected in the shops and supermarkets.”

He said there would be no choice but to rethink their business model to deal with circumstances but declined to say whether any of the vessels now in use would need to be withdrawn.

Seatruck Ferries, which operates 24 sailings a week from Liverpool, plans to introduce new ships later this year.

Alistair Eagles, Seatruck’s deputy managing director said: “Our business model favours the economic situation. Unaccompanied freight means a cost saving for hauliers so we are pressing ahead with plans for two more vessels to double capacity.”

Seatruck has ordered four new ro-ro vessels to serve routes from Liverpool and Heysham.

barry.turnbull