Select a region
The island's current ferry provider has 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 have put themselves forward to win the Channel Islands contract – Condor, Danish shipping giant DFDS and Irish Ferries – and trials have been conducted with Brittany Ferries and DFDS vessels over the course of this year.
In a joint statement issued last night, Condor, its parent company Brittany Ferries, Jersey's Chamber of Commerce and the Jersey Hospitality Association denounced what they termed an "unacceptable" delay and said that the uncertainty had already been "detrimental to the islands' visitor economies".
Bidders were told that the contract would be awarded by the "end of September at the latest", with the tender process now "nearly a month behind schedule", the statement said.
It comes after Economic Development Minister Kirsten Morel confirmed last week that the process would be set back by a matter of days after a new senior civil servant had to be identified to lead the process following a social media blunder by the Chief Economy Officer.
"To put this delay in context: 15% of anticipated passengers have already booked to travel with Brittany Ferries next summer. That’s because we were able to launch our schedules early, and to start taking reservations a couple of months ago. But for the Islands, there have been no bookings and that is a direct consequence of delays and uncertainty in the tender process," said Interim Condor CEO and Brittany Ferries chief Christophe Mathieu.
"We worry that those considering a holiday in these beautiful destinations will simply go elsewhere," he added.
Noting the "drop" in 2025 bookings, Chamber CEO Murray Norton said: "Chamber has been consistently saying for over four months that it is not in the best interests of the island for our tourism industry to be the collateral damage, due to any delays in this tender process."
Pictured: Chamber President Adam Budworth raised concerns over the ferry tender timeline at a recent lunch event.
“Uncertainty and lack of confidence are the last things our industry needs during already challenging times, especially as we work on delivery the new Visitor Economy Strategy for growth,” added Ana and Marcus Calvani, Co-Chief Executive Officers Jersey Hospitality Association.
This morning, Guernsey's Chamber of Commerce also expressed their frustration.
"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," the business group said.
"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."
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.
Jersey and Guernsey's 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 governments of Jersey and Guernsey 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 for a trial. This was funded by the Government, who would not reveal the overall cost.
Last week, with the decision deadline looming, concerns over a possible conflict of interest at the top levels of Government were raised after it emerged that the most senior civil servant in the Economy Department had selected DFDS in an online poll asking who they want to take over the island's key ferry contract.
The 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.
Follow Express for updates...
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.