Guernsey-owned ferry company on the cards

Thursday 13 December 2018

'Guernsey Ferries' - a potential name for a potential ferry company that could be set up by the States to take on the majority of the island's passenger and freight services.

Policy & Resources are currently working out how feasible it would be to buy a fleet of ships to set up its own public ferry and freight company, as it seeks to address fears over how Condor's sale could affect the island.

The ferry firm has been on the market for some time now, but Deputy Trott said he thought a sale could go through as early as next year. Because there are fears a new owner might cut sailings to Guernsey, which, as an island, is very reliant on Condor running both ferry sailings and freight sailings to Guernsey, Policy & Resources has started to put together a number of contingency plans. A Guernsey Ferry service, akin to Aurigny, but in the sea, is at the top of that list. 

Pictured: Deputy Trott gave the States an update yesterday on behalf of P&R. 

Condor currently operates the majority of Guernsey's sea ferry services and over 90% of its sea freight. Deputy Lyndon Trott, speaking on behalf of P&R, said they did not know what the outcome of any sale would be as they were not involved with the negotiations on any level. So, as they are in the dark, they are preparing for the worst.

"Compounded by Condor's sales process, when it comes to our sea links we are vulnerable, we are exposed, we are at risk," he said.

"This provider also serves an additional, bigger market in Jersey which - perfectly reasonably for commercial reasons - it chooses to give preference to its services. Reasonable for its own business reasons - but increasingly unacceptable to our community."

Economic Development are currently working with Jersey and Condor to see what improvements could be secured both with the current owner and any potential new owner, and Deputy Trott said that work should continue. But he added, in P&R's view, more of the same was not going to be seen as a success.

"Of course we cannot be sure of the plans of any new owner of the provider. 

"So in our Policy Letter in February, we will be recommending further independent expert work is undertaken during the first quarter of 2019 to look at the contingency option of a setting up a Guernsey-only, Guernsey-owned passenger, vehicle and freight service, should one be needed; and the contingency option of finding a new operator should the new owner of the current provider decide that they do not want to maintain and improve the services to Guernsey."

Pictured: Condor CEO Paul Luxon. If a new owner was to take on the company, there is no way of knowing whether they would continue services to Guernsey. That is why P&R are planning for the worst. 

P&R will also be commissioning experts to provide further details on exactly what would be required. That includes what investment would be required, financial modelling and commercial considerations.

"This is contingency planning. Just as we planned and are planning for Brexit, and planned for the referendum, and plan for many other things, so we are planning for our sea links. This is what government must do, and it is the role of the Policy & Resources Committee to provide this leadership," Deputy Trott added.

The final decision of whether P&R should continue with this line of contingency planning will go to the States in the first quarter of next year, when the committee delivers a policy letter outlining a recent report done by PWC into the island's air and sea transport links. That report will also recommend the States stops looking into extending the runway. 

Pictured: Bumblebee ran a ferry service to Alderney, but ceased operating earlier this year. Deputy Trott said a Guernsey Ferry company could include the island in its routes. 

When asking questions about the potential for this new local ferry company, Alderney Representative Louis Jean asked if the northern most isle would be included in any plans. Deputy Trott said the answer to that question was absolutely.

It was also asked whether making this information public now might affect Condor's sale, as it could be interpreted as the ferry company losing some of its market. Deputy Trott said it was government's duty to be transparent about matters such as this, however, and he also said this was something Condor knew was on the cards.

"Given the work that we will be doing, we need to be careful not to undermine any commercial position that we could need to adopt in the future. However, as a government we have a duty to be as open and transparent as possible. No one, regardless of their stake would or should expect anything less," he said. 

Pictured top: A Bailiwick Express mock-up of what a States-owned ferry could look like.