Guernsey ferry company on cards amid Condor sale fears

Thursday 13 December 2018

Guernsey’s government is considering setting up its own ferry company, as it seeks to address fears over how the sale of Condor could affect the Channel Islands.

The island’s Policy and Resources Committee are currently working out how feasible it would be to buy a fleet of ships, which would operate both public ferry and freight services.

Condor has been on the market for some time now, leading to fears a new owner might cut sailings involving Guernsey.

The Committee has now has started to put together a number of contingency plans, with a Guernsey Ferry service - akin to Aurigny, but in the sea - at the top of that list. 

Pictured: The news was revealed by Guernsey Deputy Lyndon Trott.

Condor currently operates the majority of Guernsey's sea ferry services and over 90% of its sea freight. Politician Deputy Lyndon Trott, speaking on behalf of the Committee, said they did not know what the outcome of any sale would be as they were not involved with the negotiations on any level.  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."

Guernsey’s Economic Development Department is currently working with Jersey’s government and Condor to see what improvements could be secured both with the current owner and any potential new owner. Deputy Trott said that work should continue. However, he added, more of the same will not be seen as a success.

Pictured: Condor CEO Paul Luxon.

"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."

Policy and Resources 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 amd Resources Committee to provide this leadership," Deputy Trott added.

Pictured: Bumblebee previously ran a ferry service to Alderney, but ceased operating earlier this year. 

The final decision of whether the Committee should continue with this line of contingency planning will go to Guernsey’s 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 Guernsey stops looking into extending their airport runway. 

Questioning the potential for a new local ferry company, Alderney Representative Louis Jean was assured that the northernmost Channel Island would be included in plans for the new ferry company.

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, adding that 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.