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Condor may need to defend its position as the Channel Islands freight and passenger ferry provider following the announcement from the Governments of Guernsey and Jersey that a procurement process has begun.
Both States have stressed that the freight and passenger market is “contestable”, with Jersey’s Minister for Sustainable Economic Development, Deputy Kirsten Morel, going as far to say: “This procurement is an open and competitive process and we strongly encourage interest and engagement from all ferry operator parties within this initial market testing phase.”
It comes weeks after Condor shot down speculation about its finances, instead announcing that it was undergoing a “temporary but challenging” time. The States of Guernsey and Jersey subsequently commissioned a “resilience test” with a cargo ship that undertook berthing trials in St Peter Port and St Helier.
Condor has an operating agreement with Jersey and a Memorandum of Understanding with Guernsey, with Jersey’s agreement having been in a wind-down phase for the past several years.
The first stage of a procurement process for a new long-term agreement involves market testing and “comprehensive discussions” between the two islands.
“Sea connectivity is absolutely vital for the Channel Islands, and it is clear to both Islands that in order to get the best outcomes for our community, our economy and our visitors that we must work in lockstep,” said Guernsey’s President of the Committee for Economic Development, Deputy Neil Inder.
“We are starting this process now in order to make sure it’s completed in good time for when the current agreement comes to an end. We will welcome competitive submissions from prospective operators, including of course the current and longstanding operator Condor. The priority is of course ensuring the best possible freight and passenger services for the Channel Islands market are secured.
"Deputy Morel and I are fully committed to working together through this process, and securing the best outcomes we can get for the Channel Islands as a whole.”
Jersey’s Minister for Sustainable Economic Development, Deputy Kirsten Morel, said:
“The reason that we are going through this process is to ensure that we secure the best possible freight and passenger services for the Channel Islands.
“Condor has an operating agreement with Jersey, and a memorandum of understanding with Guernsey to provide our sea connectivity: 98% of goods consumed in Jersey arrive by sea, so every islander and every island business is reliant on these services. We are in the winding down period of the current operating agreement, which ends in 2025. This is, therefore, the right time to look at what all operators in the market believe they can deliver in terms of resilience, reliability, passenger experience and sustainability. “
It’s unclear how this process will impact the relationship between Guernsey and Condor, after the Civil Contingencies Authority instructed Policy and Resources to give £3million of public money to Condor to buy the Islander, along with a government loan facility of £26million. Express has sought clarity on this point.
More to come...
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