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Corsica Ferries tries to delay bid process

Date: 14 Feb 2007 00:00 Source: Lloyds List

Corsica Ferries has tried to tempt the Corsican authorities into delaying the start of the new concession for ferry services between the island and the French mainland with a promise of cost savings totalling €156m ($203m) and free winter travel for Corsican residents.

It has submitted proposals to operate three of the five lines up for bidding but says its vessels are already committed for the summer season and can only be made available from November.

At the moment, the Corsican authorities, who have already been obliged to delay the start of the concession from January 1, are planning to bring it into force from May 1.

Corsica Ferries claims that this date puts it at a disadvantage in relation to its rivals, SNCM and Compagnie Meridionale de Navigation, who have patched up their differences to make a joint bid for the concession.

As the holders of the existing concession, SNCM and CMN are already operating the lines out of Marseilles which comprise the new concession and, therefore, have no problem of vessel availability for the summer season.

Corsica Ferries, which operates its vessels out of Toulon and Nice, says that it is already taking bookings for the summer season for its vessels on other lines and cannot therefore make them available for services out of Marseilles during the summer.

Equity, it says, demands that the start of the new concession be delayed until after the season.

To press its case, it has promised annual savings of € 26m on the three lines for which it has bid, representing €156m over the six-year life of the new concession.

It has calculated the savings by comparing its own bid for three out of five lines with the cost of operating the same three lines under the bid from SNCM which the Corsican authorities had been preparing to accept in December.

Apart from the cost savings, Corsica Ferries has said it will also offer free travel to Corsican residents during the winter, as well as to Corsican participants in sports competitions on the French mainland and to students.

The deadline for bidding for the concession, which carries annual subsidies totalling €95m, closed on Friday.

So far, however, the Corsican authorities have given no indication as to whether or not they are ready to take the Corsica Ferries bid into consideration.

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