Ferry Operators' Fury over Dover Snub

Dover Strait ferry operators have launched a stinging attack on Dover Harbour Board (DHB) in a row over privatisation plans. Norfolkline, SeaFrance and P&O hit out DHB’s consolations with them over plans to privatise the port, describing them as a “meaningless waste of time” that had not made “one iota of difference”.

DHB launched a consultation process after it announced plans to privatise in January. In March, the three operators criticised DHB for misleading them over the reasons behind hikes in port charges over the last three years and plans to increase charges by 33%, compared to 2009, by 2012. DHB said it needed to increase prices to raise funds for a new terminal because its trust port status meant it could not borrow the money from other sources. However, the operators said they later found out that funds raised by price hikes, which came to around £60 million (US$88.6 million), would be spent on DHB’s pension fund deficit to smooth the path to privatisation. They also said they had learnt that there would be no obligation to develop the terminal under the terms of privatisation.

Helen Deeble, CEO of P&O Ferries, said: “We have given DHB every opportunity to address our concerns but they have not done so, and we are at the end of our tether. This is highly regrettable. They have presented only one alternative to the present structure, with very little detail and no consultation with us. We are seriously concerned that, with no protection from future tariff increases, the very economic model of the ferry industry is threatened – which, in turn, threatens jobs.”

Deeble has written to UK Shipping Minister Mike Penning advising him that the talks with DHB are over. She also said that in lieu of any kind of an appeals process, P&O Ferries was left with no choice other than to make a pricing complaint under the Harbours Act 1964.

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