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Jersey is “heavily dependent” on the UK for its “lifeline” freight service and should look at using incentives and space at the port to support new entrants to the market, such as from France, a study by the island’s competition watchdog has concluded.
The Jersey Competition and Regulatory Authority (JCRA) concluded that the lack of physical space at the ports was limiting competition and may also lead to inefficiency in existing providers’ operations.
Given how “heavily reliant” the island is on freight, the watchdog said there were “risks” in the fact the island has only one 'roll on, roll off' (RoRo) operator, one dominant freight logistics provider and mostly looks to the UK market.
It noted, however, that “’lift on lift off’ (LoLo) is widely used in Jersey and does offer an alternative to RoRo, and there could be opportunities for greater trade with France.”
To help with this, the JCRA has made seven key recommendations:
"This market study has been thorough and inclusive, reflecting the lifeline status of the freight logistics sector in Jersey,” commented JCRA CEO Tim Ringsdore.
“The study posed a number of challenges, but we have effectively achieved our objective: to review the market in terms of competition and resilience.”
He added that the regulator would “support the implementation of the recommendations. We will also closely follow further policy developments in this area and seek updates on implementation of the recommendations.”
Video: JCRA CEO Tim Ringsdore speaks about the local freight market.
Thanking all those who contributed to the study, he added: “There has been robust, honest, and extremely valuable debate during the process and, as a result, I think we have built a clear picture of the market as it stands, and the opportunities that exist to improve what we have."
In February, Condor announced it would be running five high-speed freight sailings per week from Saint Malo to Jersey from April in a move the Co-op said paved the way for more French products on its shelves.
During the earlier stages of the pandemic, the ferry operator was provided with an emergency grant to maintain the island's freight links.
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