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Latest Ferry NewsThe latest ferry news for November 2005 is below:
End of an Era for Sea ContainersDate: 7 Nov 2005Source: Lloyds List Debt-ridden Sea Containers has finally called time on its long struggle to stay in shipping, putting its principal ferry division up for sale and closing another. With the London-headquartered conglomerate already virtually out of port operations after a number of divestments, the restructuring will leave Sea Containers with only one main maritime-related business, container leasing. But even that faces an uncertain future because of a legal dispute with partner General Electric that has left a question mark over their GE SeaCo joint venture. Sea Containers, which said some time ago it wanted to sell its shares in Orient-Express Hotels, could be transformed into a train operating company after the latest disposal programme and other cost-saving and cash-raising plans announced at the weekend. At the centre of the shake-up is the proposed sale of Silja, the Finland-based Baltic cruise ferry line that has been hit by soaring fuel costs, reduced profits from dutyfree sales and overcapacity in the Swedish markets. Losses spiralled to $20.3m in the first half of the year and Sea Containers has now asked Société Générale to look for a buyer. No price has been disclosed, but Silja is said to have asset value of €400m to € 500m ($520m-$650m), with both trade and financial buyers already expressing interest. Sea Containers also ended months of speculation by confirming that its Hoverspeed service between Dover and Calais in the English Channel would be closed next year after mounting losses. Separately, its New York Sea- Streak ferry operator is to be sold. The company sold the Isle of Man Steam Packet Co two years ago in order to reduce borrowings, but by the middle of this year long-term debt still totalled $1.3bn. The disposal plans now revealed represent a complete re- focusing of an extraordinarily diverse business portfolio built up by its founder James Sherwood over the past 40 years, with business interests ranging from luxury hotels, plantations and the Illustrated London News to ferry operations, container leasing and manufacturing and train operating franchises. The company also owns the Corinth Canal in Greece. Mr Sherwood, 72, is still president and chief executive of the company he established after graduating from Yale. He has also written restaurant guides and is now in dispute with his partners about ownership of an exclusive central London dining club. Although registered in Bermuda and listed in New York, Sea Containers is run from London where its prestigious Thameside headquarters is a city landmark. Sale of ferry activities and other restructuring will make the business “much more manageable,” said a commentator. One of its main divisions in future will be train operators in Britain, where it already owns the GNER franchise and is bidding for another, Integrated Kent, in southeast England. Sea Containers has links with Britain’s railways going back to the time when it bought the former British Rail’s Sealink ferry business in the mid-1980s. Hoverspeed announces early closure on Dover Calais routeDate: 4 Nov 2005Source: Sea Containers Ltd Cross Channel fast ferry operator Hoverspeed today announced that following consultations with its permanent staff in the UK and Europe, it had reluctantly decided on an early closure to the season. Hoverspeed, which operates on the Dover-Calais route, said it could no longer sustain the losses on the English Channel. Hoverspeed will retain a certain number of staff who will look after the care and maintenance of its two SeaCats whilst a decision is made on future deployment of the craft. Consequently many jobs will unfortunately be at risk over coming weeks. A spokesman said: “We have implemented a number of changes to the business over the last few years in an effort to improve our financial performance, including moving to a seasonal service. “However despite vehicle carryings increasing by 17 per cent this year, there remains surplus capacity on the Dover-Calais route and our average yields have declined. We have also seen a dramatic increase in the price of fuel – up 54 per cent from last year – and this, coupled together with a diminishing market and less retail opportunities have been the principal causes of our financial problems.” The spokesman added: “The regrettable decision to cease operations has not been taken lightly and it is a sad moment. I would like to pay tribute to all Hoverspeed staff for their hard work, flexible working practices and effort over the years. We shall be looking at various options as to how we may assist those employees who may now face redundancy.” Hoverspeed said that last scheduled sailing of its service would be the 17:30 hours crossing from Dover returning from Calais at 20:15 on Monday 7 November 2005. Any passengers with a forward booking from that date will be contacted and arrangements will be made for them to have an alternative crossing with another operator to minimise any inconvenience. Passengers who do have any queries are asked to call 0870 240 8282. Fjord Line stake is soldDate: 2 Nov 2005Source: Lloyds List NORWEGIAN coastal operator TFDS and Fjord 1 Nordvestlandske have sold their stake in Fjord Line for NKr1 (15¢) in the wake of the collapse of Faroe Isles ferry operator Smyril Line’s moves to take over the troubled Bergen ferry group, writes Jerry Frank. TFDS and Fjord 1 have sold their shares in Fjord Line to limited partnerships KS NordsjØferger and KS Bergensfjord, who own Fjord Line’s vessels the Fjord Norway and Atlantic Traveller. Fjord Line said the two KS shipowning companies were now their main shareholders and had contributed unspecified amounts of “new liquidity” into the business. Last week Smyril Line finally withdrew from its long-running attempt to take over the Bergen ferry operator, but could still work closely with Fjord Line. “The new owners are concerned with continuing discussions with Smyril Line with a view to establishing a strong alliance in the North Sea basin,” said Fjord Line managing director Ove Solem. “Fjord Line is satisfied that a solution has been found that creates a foundation for continued operation of the company’s services to Denmark and England.” |
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