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Business leaders have joined ferry companies in calling for a timely resolution of the tender process.
Guernsey's Chamber of Commerce says it is “crucial” that work gets underway in order to allow industry a chance to prepare saying “the overdue decision regarding this contract is now impacting business operations on the island”.
Yesterday Condor banded together with business and hospitality leaders to call for an end to the "prolonged impasse" in confirming the winner of the new passenger and freight contract – warning that tourism "will end up as collateral damage".
Three major ferry operators are understood to have put themselves forward to win the Channel Islands contract – Condor, Danish shipping giant DFDS, and Irish Ferries. Trials have been conducted with Brittany Ferries and DFDS vessels over the course of this year.
Pictured: Three Ferry Operators are all in the chase for the Channel Islands contract. DFDS (Top Left), Irish Ferries (Center), Condor Ferries (Lower Right).
Guernsey's Chamber of Commerce said: “The Chamber recognises that the thorough due diligence and governance when making significant decisions affecting our community takes time. However, the overdue decision regarding this contract is now impacting business operations on the island.
“A timely resolution is crucial, as local businesses need clarity to make informed plans and investments for the upcoming year. We urge all relevant parties to prioritise this matter, ensuring that our business community can move forward with confidence and stability in planning for the future."
On 'tender-hooks'... The story so far:
Condor signed an agreement with Jersey’s Harbourmaster in 2014 which, in essence, gave the company an exclusive ramp licence to run Roll-on, Roll-off services in return for a guaranteed level of service, including types of vessels, pricing and timetables. The agreement did not prohibit other operators entering the market, but they would have to provide the same level of service as that set out in its 80 pages.
The agreement included a 'wind-down' period after seven years. Despite the name, the period does not mean a 'winding down' of services, but rather marked the start of Condor and the Channel Islands beginning the process of hammering out a new deal before.
The States of Guernsey jointly purchased a new ferry with Condor – and loaned the company £26m – to “prevent a potential emergency occurring”.
The nature of the "potential emergency" that prompted the deal has never been disclosed.
Later in the year, accounts published on the Companies House site revealed that Condor had to refinance a loan. An agreement was reached with NatWest that the bank could seize assets should Condor be unable to meet the schedule for repayment.
Towards the end of the year, the ferry operator faced backlash from the business community and Government after it outlined plans to increase freight prices by inflation plus 10%, resulting in a total increase of 18.76% from 1 January 2024.
Both Guernsey and Jersey governments confirmed on 15 December that they had jointly commissioned berthing trials of a large cargo ship – the DFDS Finlandia Seaways – as part of what they described as a freight "resilience" test.
On the same day, amid speculation over Condor's finances, the company confirmed it was undergoing a "temporary but challenging" time but would not provide more details on the nature of its difficulties.
In January, the Islands’ governments confirmed that they were 'shopping around' for a key freight and passenger ferry provider.
In February, Condor confirmed that its then-CEO John Napton was stepping down "with immediate effect".
In March, Brittany Ferries conducted a berthing trial with the 157m-long Barfleur.
In April, Condor Ferries Limited filings with Companies House showed a £1.4m loss.
In May, it was confirmed that Condor and DFDS had officially thrown their hats in the ring for the key contract, with DFDS having visited the island in April to woo islanders and business leaders with a promise of a hybrid-electric vessel.
That same month, another Brittany Ferries ship carried out a trial in Jersey – the 151m-long Bretagne – and it also emerged that Condor had extended a loan agreement with NatWest for the second time in seven months.
In August, it was revealed how the future of Condor Ferries rides on whether the company wins the tender to be the Channel Islands' passenger and freight ferry operator.
In September, the Economic Development Minister reassured States Members that Jersey and Guernsey would have an "entirely equal say" on the new service. Later in the month, the Chamber of Commerce warned the Government that any delay to concluding the process will damage the visitor economy.
This month, DFDS' Seven Sisters vessel came to Jersey and Guernsey for a trial funded by the Government.
Last week, with the decision deadline looming, concerns over a possible conflict of interest at the top levels of Jersey's Government were raised after it emerged that the most senior civil servant in Jersey’s Economy Department had selected DFDS in an online poll asking who they want to take over the island's key ferry contract.
Jersey's Economic Development Minister confirmed last week that Richard Corrigan – who was said to have made an honest mistake while seeking to look at the poll results – had stepped aside from the process and that another senior civil servant would be appointed Senior Reporting Officer instead – but noted that this may lead to a delay of some days in the final decision.
Guernsey has maintained a position of not commenting on the ongoing discussions.
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