Dear Editor,

Re: Eurotunnel boss fears price increases on Dover Channel crossings

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.

Yours

Cailean Watts

Hawkinge Gazette and Channel Coast News 2012©