10 replies to this topic

[shipbroker]

Lloyds Loading List report today as follows:---



My Ferry Link, which launched a Calais-Dover service on 20 August with ex-SeaFrance vessels leased from Eurotunnel, is running short of cash.

The operator is waiting to receive funds from SeaFrance’s liquidator, estimated at between €8 million and €10 million.

The cash represents “job protection” payments to the 350-400 former staff of the collapsed SNCF-owned ferry operator now employed by My Ferry Link to operate its services within the framework of a workers’ co-operative.

My Ferry Link director Jean-Michel Giguet told Lloyd’s Loading List.com that the funding had been expected to be handed over at the end of September. But he declined to elaborate on the reasons why it had yet to be granted.

He said: “These monies are due to My Ferry Link and were an integral part of the company’s business plan from the outset. I’m confident we’ll receive them.”

He added: “It’s become a matter of urgency as our cash flow is being stretched.”

Eurotunnel confirmed that the first lease payment on the vessels had been honoured and agreed that the blockage of the capital constituted a threat to the viability of the workers’ co-operative.

Commenting on My Ferry Link’s first couple of months in business, Giguet said: “We were braced for a difficult start, given that we were launching services at the end of the peak summer, and so it has proved.

“In addition, we entered the cross-Channel market nine months after SeaFrance suspended its services and have had some serious competition to contend with.”

Following SeaFrance’s collapse, DFDS Seaways, in a joint-venture with LD Lines, launched a Calais-Dover service with two vessels while P&O increased its capacity on the strait.

My Ferry Link is currently operating two vessels on the route, the Berlioz and the Rodin. but Giguet said the company would have three ships (the other being the freighter Nord Pas de Calais) available from February 2013,when heavy maintenance work is completed.

“2013 will be our first full year of activity, and with three vessels we will ready to make a concerted effort at developing our market share,” Giguet said.


geoff

[indoors]

Hi all,
I hope they have more success than we as a Company have, I've been back of the queue on too many occassions and got bxgger all.
indoors.

[Beejay]

Day returns for 1p during half term.

[shipbroker]

Beejay, on 25 October 2012 - 04:30 PM, said:

Day returns for 1p during half term.

That will pay for a lot of Marine Diesel!!

geoff

[shipbroker]

To save starting a new thread..herewith latest monetary predictions:---

Eurotunnel said it expects to lose around €25 million in the first 18 months after the launch of new cross-Channel ferry services by its subsidiary, My Ferry Link (MFL).

“Every business starting from scratch loses money in the start-up phase, and the MFL operation is no different,” a spokesperson for Eurotunnel told Lloyd’s Loading List.com.

“These losses were factored into MFL’s business plan from the start. There is no way they can be interpreted as being unexpected.”

She did not stipulate whether Eurotunnel’s prospective losses refer to the maintenance of the three former SeaFrance vessels –  Berlioz, Rodin and freighter Nord Pas de Calais – and their lease to MFL or also include direct financial support to MFL to cover operating costs.

A recent report in the French media claimed that MFL was benefiting from “very advantageous terms” on the vessel leasing.

The spokesperson commented: “Given that MFL is a subsidiary of Eurotunnel, to speak of ‘very advantageous terms’ is not at all relevant.

“In any case, the terms were validated by the commercial court when it approved Eurotunnel’s acquistion of the vessels in June last year."

Last October, the UK Office of Fair Trading (OFT) referred Eurotunnel’s acquisition of the three ferries and other assets of SeaFrance, to the UK Competition Commission, citing concerns that it could substantially reduce competition on the Channel.

Spokesman for rival operator P&O Brian Rees told Lloyd’s Loading List.com at the time: “The biggest operator on the Channel has moved into the ferry market with the creation of MFL.”

He suggested that a situation in which Eurotunnel financed MFL via its profitable business units would itself “raise issues of fair competition”.

Rees said: “Doubtless, it will be something the UK Competition Commission will take into account in its investigation – the aim of which is to establish whether there is ‘a level playing field’ on the Dover Strait and that the market is not being distorted.

“We await its conclusions [expected in April] with interest.”

The French regulatory authority cleared Eurotunnel’s purchase of the SeaFrance vessels, subject to certain conditions.

The judgement stipulated that Eurotunnel undertake to separate its rail freight rate offering from that relating to sea freight and for five years not propose discounts on rail freight rates to customers that also use MFL

geoff

[shipbroker]

Lloyds Loading List report tonight:-

Eurotunnel subsidiary My Ferry Link (MFL) has reached agreement with SeaFrance’s liquidator to receive around €10 million for having hired 371 staff who worked for the collapsed cross-Channel operator.

An initial payment of €7 million will be made in the next few days, followed by the balance in the coming weeks, an MFL spokesman told Lloyd’s Loading List.com.

The agreement follows a hearing in a Paris commercial court yesterday.

The funds were promised by SNCF, SeaFrance’s owner, as part of a redundancy programme. The French state railway had made a commitment to pay €25,000 for each worker hired by any company acquiring SeaFrance’s vessels.

“The agreement (on the funds) is a huge relief and will bolster our cash flow, consolidate our development and protect jobs,” the spokesman said.

MFL has long argued that these funds were due when it launched its Calais-Dover services last August, but the liquidator considered that the conditions relating to their release had not been met.

By the autumn, there were fears that MFL could run short of cash if the funds were not handed over.

MFL now has three vessels in service, and last week its daily schedule of 12 round-trips was transporting around 600 trucks a day across the Channel.

“This was a very encouraging performance and obviously we are hoping it will continue,” said the spokesman. “It’s a strong indication that we are building up our freight offering and developing a customer base.

“We can look back to our first crossing last August when we only transported one truck and see how far we’ve come.

“Truck drivers are beginning to appreciate the quality of services aboard MFL’s ferries, particularly the cuisine.”

MFL employs a total of 530 staff in total in France and the UK.

Last week, Lloyd’s Loading List.com reported that Eurotunnel was expecting to lose around €25 million in the first 18 months after the launch of MFL.


geoff

[shipbroker]

This isn't a surprise!

Cross-Channel freight customers could face higher prices following Eurotunnel’s acquisition of three ferries from collapsed ferry operator SeaFrance, according to the UK’s Competition Commission (CC), which announced its provisional findings today.

The three vessels are currently operated on the Calais-Dover crossing by Eurotunnel subsidiary, MyFerryLink (MFL), which launched services in August last year.

Chairman of the Eurotunnel/SeaFrance Inquiry Group and CC Deputy Chairman, Alasdair Smith, said: "It would seem that Eurotunnel moved into the ferry business because it was concerned at the increased competition it would face if another operator bought the assets.

“Given that the company already holds a market share of over 40%, we’re concerned that customers could lose out from Eurotunnel increasing its share even further and being able to raise prices on the tunnel services.

"In view of the current excess capacity on the Dover–Calais route, it also seems likely that one of the current ferry operators is likely to exit in the short to medium term. We think that customers will be better off if there are two independent ferry companies competing with the tunnel than if one of the two is owned by Eurotunnel," he added.

In a statement, Eurotunnel said it would challenge the CC’s provisional findings.

"Eurotunnel contends that, since the favourable opinion given by the French Competition Authorities in 2012, it would appear the existing ferry operators in the short straits market have sought to use the process initiated by the British competition authorities to protect their own interests from new entrants and increased competition."

Speaking from the group’s HQ this morning, Eurotunnel Chairman and CEO Jacques Gounon said: “Eurotunnel intends to continue to work with the Competition Commission to allay the concerns raised by existing ferry operators and to demonstrate that the creation of MyFerryLink is a good thing for the market as it is both pro-customer and pro-competition."

This sentiment is supported in the CC’s summaries of hearings with cross-Channel customers, using both ferry and tunnel services, and which are published on its own website, the Eurotunnel statement added.

As well as the provisional findings summary, the CC has also published a notice of possible remedies, outlining ways of addressing the anti-competitive effects of the acquisition.

Foremost among them is the divestiture of the MFL business or its assets, including the three vessels, which in the CC’s view "is likely to be effective in addressing a substantial lessening of competition".

The CC is expected to publish its final report by 14 April.

geoff

[shipbroker]

Todays report from Lloyds Loading List:-


The UK and France could be set for a legal wrangle over Eurotunnel’s acquisition of three ex-SeaFrance ferries last year.

The vessels are operated on the Calais-Dover crossing by Eurotunnel subsidiary MyFerryLink (MFL), which launched services last August.

This month, the UK Competition Commission (CC) announced provisional findings on the acquisition, concluding that it could result in cross-Channel freight customers facing higher prices.

CC Deputy Chairman Alasdair Smith, who chaired the Eurotunnel/SeaFrance inquiry group, said: "Given that the company already holds a market share of over 40%, we’re concerned that customers could lose out from Eurotunnel increasing its share even further and being able to raise prices on the tunnel services."

It would appear unlikely that the UK CC’s position will change when it publishes its final report by 14 April, which could put it on a collision course with French counterpart Autorité de la Concurrence, which in November gave its approval to Eurotunnel’s acquisition of the ferries – subject to certain conditions being met for freight traffic.

These focus on Eurotunnel undertaking to separate its rail freight rate offering from that relating to sea freight and for a period of five years not offer discounts on rail freight rates to customers who also use MFL.

Compare this with the tougher line taken by the CC which, in addition to its provisional findings, published a notice of possible remedies outlining ways of addressing the anti-competitive effects of the acquisition.

Foremost among them is the divestiture of the MFL business or its assets, including the three vessels, which in the CC’s view would be “likely to be effective in addressing a substantial lessening of competition”.

Eurotunnel is contesting the CC’s provisional findings.

A spokesperson told Lloyd’s Loading List.com: “Based on the expert analysis of its legal teams, the French regulator has rendered a definitive ruling and given the go-ahead for the launch of MFL after the acquisition of the vessels by Eurotunnel. There is no reason why this should be ignored.

"In our view, the entry of a new competitor on the cross-Channel trade, in the shape of MFL, strengthens competition and increases customer choice.

“If customers choose to use MyFerryLink, it’s because there is real demand for an alternative operator."

Eurotunnel also argues that it would not be legally possible to sell the ferries, as this is prohibited under the terms of the judgement of the Paris commercial court which approved the acquisition.

geoff

[shipbroker]

Lloyds Loading List today reports:-


The UK Competition Commission (CC) has extended the deadline for publication of its final report on Eurotunnel’s acquisition of three SeaFrance ferries last year, admitting the process is complicated.

It has extended the deadline from 14 April to 9 June and published a supplementary remedies notice.

The ferries are currently operated on the Calais-Dover crossing by Eurotunnel subsidiary MyFerryLink (MFL), which launched services last August.

In provisional findings, the CC said the acquisition “could result in a substantial lessening of competition”, and put forward the sale of the MFL business or its assets, including the three vessels, as a possible remedy.

The supplementary remedies notice sets out some of the “complications” of the case – chief among them, a spokesman for the regulator said was that a ‘sell order’ would fly in the face of a French Commercial Court Order which prohibits the sale of the ships for five years.

He added: “It seems likely that a divestiture order would need approval from that court."

The court order took into account “the low price offered and the financial consequences of a possible change of flag”, and aimed to “to avoid any speculative transaction to the detriment of the creditors”.

The CC stressed that it had considered the arguments raised by Eurotunnel and the co-operative of ex-SeaFrance staff (SCOP) working on the MFL service, on the possibility of a sell order.

It said: “The CC’s current understanding is that a request to the court is only likely to be successful if it takes into account the employment prospects of the SCOP members and avoids any speculative transaction to the detriment of the creditors of SeaFrance.

“For these reasons, the CC considers that a purchaser may need to be identified before a request is made to the court. The CC has received no evidence to suggest that the consequences of changing the flag of the vessels remain an issue."

geoff

Watch this space......................

[Rodders]

3 companies run over ,Dover / Calais,  and the price difference ? for  crossing that my son booked last night , DFDS & My Ferry the same at about £80 , P&O £4 more , competition ? Hummm

Under ?Eurotunnel way way off the plot, almost double

[shipbroker]

lloyds Loading List today reports-



Eurotunnel is said to be ready to separate the group’s cross-Channel ferry arm, MyFerryLink (MFL), from its core business in a bid to satisfy the UK Competition Commission (CC) which argues that the acquisition of three SeaFrance ferries last June raised competition issues.

Last month, the CC extended the deadline for publication of the conclusions of its investigation into the purchase of the ships until 9 June, but issued a supplementary remedies notice.

In provisional findings, the CC said the acquisition “could result in a substantial lessening of competition”, and put forward the sale of the MFL business or its assets, including the three vessels, as a possible remedy.

The supplementary remedies notice sets out some of the “complications” of the case – chief among them being that a sell order would appear to fly in the face of a French commercial court order prohibiting the sale of the ships for five years.

But the CC has raised the possibility of the vessels being sold in 2017.

Contacted by Lloyd’s Loading List.com, a Eurortunnel spokesperson said the group would not be making any comment ahead of the CC’s decision.

But in a letter to the CC, Eurotunnel proposes to transfer MFL’s commercial teams to the co-operative of ex-SeaFrance workers operating the vessels, as well as the total separation of Eurotunnel’s business and that of MFL, according to a recent report in the French media.

In the letter, Eurotunnel says "relinquishing the vessels after June 2017 would be unrealistic, disproportionate and contrary to the opinion of the French competition regulator”, and lead to “a reduction in consumer choice and without doubt an increase in ferry rates”.

The letter also reveals that Eurotunnel continues to contest the CC’s view that the acquistion of the ferries prejudices fair market competition, claiming this has not been proven.

It goes on to dismiss the idea of price controls, "which to an extent run contrary to the economic principles on which the tunnel concession is founded. Eurotunnel is against any proposal to control prices".

It also argues that there would be little or no prospect of a buyer for the ex-SeaFrance ferries or MFL and that, in the event of a change of ownership, the 400 staff employed by the workers co-operative would very likely lose their job guarantees.

Eurotunnel could appeal the CC’s decision before the Competition Appeal Tribunal.

geoff