Chamber warns of the inevitable cost dangers if islands’ split on ferry contract

Friday 01 November 2024

Two different ferry operators for Guernsey and Jersey’s lifeline routes will inevitably increase costs, Chamber has warned.

Guernsey’s Economic Development Committee announced late on Wednesday that Brittany Ferries was its preferred bidder, while Jersey has still not reached a conclusion after 10 months of talks.

Minsters there were locked in discussions today as they worked on whether to plump for DFDS instead, weighing up questions and answers over operator ownership, financial viability, and future investment in vessels.

A spokesperson for Guernsey's Chamber of Commerce said: "We are concerned that having two different operators will inevitably add both cost and complexity to our transport system as we are losing the economies of scale we currently benefit from."

"There are many unanswered questions about schedules, freight pricing, and passenger timetables, which will remain uncertain until key negotiations are completed on the service level agreement, KPIs, and minimum service standards.

"This arrangement of a Guernsey only service is significantly different from the initial deal that was presented in the tender - and we have questions about the potential impact on service quality and affordability for our community."

Economic Development has maintained that its preference is for Jersey to follow its choice, but that if it did not, talks would quickly resume on how inter-island travel would work.

Brittany Ferries has a timetable ready to go should Jersey chose them.

But detailed talks on the 15 year contract remain to be concluded.

The Guernsey Retail Group welcomed Economic Development's decision.

"The timely movement of food, medicines and all other imported goods on which the Island depends is crucial for retailers, along with resilience and the security of supply," a spokesperson said.

"It is widely recognised that living on these islands can sometimes bring unique transportation challenges, so we fully support the Committee's initiative to protect our connections for the long term."

A States of Jersey spokesperson said that the Council of Ministers has had positive discussions on lifeline ferry services.

"The questions asked of the operators were in the best interests of Jersey’s public and were on crucial elements of operator ownership, financial viability, and future investment in vessels.

"We have sought answers to these questions throughout the process and the Council of Ministers is pleased to have received some clarity over the past 24 hours to validate the concerns of the Minister for Sustainable Economic Development.

"We are now considering the answers and will make a further announcement on Monday."

Brittany Ferries will use its management and infrastructure as well as deploying Condor's current fleet, Guernsey has said.

The company had a turnover of approximately €450m in 2023, operating nine vessels with 2,500 employees, and is the majority shareholder in Condor.

Guernsey has strong financial links with Condor after loaning it £26m. while also investing another £3m. in April 2023 to buy what is now the Condor Islander.