Brittany Ferries sues DFDS for £125m over subsidised trade route believing Portsmouth will "lose out" unfairly
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Two ferry companies are once again at each others throats as Brittany Ferries is suing DFDS for £125m.
The Portsmouth-based operator, whose ferries regularly transport passengers and goods between the UK and Europe - namely France and Spain - is taking legal action against its bitter rival. They claim £125m has been lost to its business since 2013 due to freight traffic moving from Portsmouth to a route between Newhaven and Dieppe.
DFDS operates the subsidised route and more businesses are choosing to use it due to cheaper costs. CEO Christophe Mathieu said: “The losses suffered as a consequence of vast subsidies given to DFDS to prop-up the Newhaven Dieppe route, go way beyond Brittany Ferries.
“Portsmouth is our UK-hub and we want the city to benefit fully from our long-standing partnership. However, if hauliers and passengers turn to low-cost Newhaven, Portsmouth loses out. That must be something of concern to the port and local politicians.”
Brittany Ferries company chairman, Jean-Marc Roué, believes it’s unfair competition and said the company has incurred “significant losses” as a result. He slammed overcompensation operating costs for DFDS, calling it a “waste of public money”.
Speaking to the French newspaper Le Marin, he said: “Subsidies granted by the Syndicat mixte transmanche (SMPAT) in Normandie allow DFDS to levy artificially low fares that are out of touch with economic reality. This draws a significant proportion of freight and passenger traffic to the Newhaven-Dieppe route, to the detriment of Brittany Ferries.”
A court hearing is due to take place in Brest, France, on June 6. Alongside the civil action, Brittany Ferries is has lodged a complaint at European leave with the EU Directorate-General for Competition. DFDS has been approached for comment.
Ferry rivals in Portsmouth
Tensions between both parties reached boiling point after DFDS was awarded a contract to transport passengers and freight between Portsmouth and Jersey. Brittany Ferries was the previous operator but lost the right to continue running the service, with the Danish company being chosen as the preferred bidder by the Jersey government.
Brittany Ferries issued a legal challenge but to no avail, although they are still in charge of the Guernsey route. The row led to Jersey minister of economic development, Kirsten Morel, accusing Brittany Ferries of operating a “smear campaign”, adding that he was “fed up” with being accused of preferential treatment.
MV Stena Vinga was the first DFDS ship to sail from Portsmouth International Port on March 28 under the new arrangement. Onboard services director Steve Newbery previously said the firm would keep its head down and focus on operating a reliable service, leaving the politics to the politicians.