Transport [1]: Eurotunnel boss fears price increases on Dover Channel crossings [2]
Posted by editor on Dec 31, 2011 - 09:15 AM
[3]
|
Channel Tunnel chief, Jacques Gounon has attacked
suggestions that Eurotunnel could have played a role in the demise of
ferry operator SeaFrance.
|
 |
|
In a
letter to shareholders, Gounon said: "Don't let anyone suggest that we
are somehow responsible for SeaFrance's collapse when it is quite easy
to see what has happened.
"The union that put forward the buy-out proposal explained that the unit
price for each crossing would need to increase by €50 for SeaFrance to
break even."
"This provided an idea of the price war which had raged on the Dover
Straits and consequently the likelihood of future price increases," he
added.
Gounon has also hit out at what he describes as the "total confusion"
surrounding the fate of SeaFrance which followed a Paris commercial
court's ruling to postpone its decision.
The court proposed the buy-out plan be considered on 3 January
2012 despite the recommendation on 19 December by the receiver, that the
business should cease.
Hawkinge Gazette and Channel Coast
News 2011©
|
Comments
Since the opening of the Channel Tunnel ferries have continued to operate.
It is highly unlikely that Eurotunnel made any significant contribution to the collapse of Sea France as its higher crossing charges place it in a different marketplace. It is that differential that has enabled Kent's ferry crossings to continue.
The ferry crossings are highly competitive and the margins for operators is slim. This can leave operators vulnerable to even small changes in travel patterns or overheads.
Ferries have significant ongoing maintenance costs as well as having to renew their vessels at huge expense. By comparison Eurotunnel's maintenance costs are relatively small with minimal capital renewal on the tunnel itself.
Furthermore the income derived from the Channel Tunnel also includes Eurostar passenger trains and long distance rail freight so a rise in shuttle-train crossings should have far less impact on Eurotunnel when compared to a ferry operator raising the cost of a ferry crossing.
Only logged in users are allowed to comment. register/log in [4]