# Euotunnel/MyFerryLink -latest.



## Erimus (Feb 20, 2012)

Lloyds Loading List lunchtime bulletin advise:-

Eurotunnel has confirmed that the contract linking its subsidiary MyFerryLink with a workers’ co-operative providing crews for its ferries will not be renewed when it expires on 2 July. 

The decision looks set to bring to an end Eurotunnel’s venture into the maritime sector, which began with MyFerryLink in 2012. But its ability to own or operate a ferry company in addition to its fixed-link business has faced a series of legal challenges from the UK’s Competition and Markets Authority (CMA).

After the UK’s Competition Appeal Tribunal (CAT) in January upheld a judgement issued by the CMA in June last year banning Eurotunnel’s cross-Channel ferry subsidiary MyFerryLink from operating on the Dover strait under Eurotunnel’s ownership, on fair competition grounds, Eurotunnel began a process of selling its ferry interests. And although a UK Court of Appeal overturned that ban earlier this month, Eurotunnel indicated today that it would go ahead with plans to dispose of its ferry business.

“We will not be renewing the contract,” a spokesman for the group told Lloyd's Loading List.com earlier today. "We are currently in a sale process for the ferries. We are considering all the options on the table and are committed to finding a solution which would allow activity to continue at Calais." 

He declined to comment on the identity of the parties who have submitted bids for the vessels and the MyFerryLink brand name.

Media reports claim that P&O Ferries, DFDS and Stena are among the candidates. DFDS confirmed its interest last week to Lloyd's Loading List.com.

“Even with its recent judicial reverses, we remain convinced that the Competiiton and Markets Authority (CMA) is determined to see Eurotunnel removed from the martime sector,” the Eurotunnel spokesman underlined.

"We have had three years of uncertainty over the future of MyFerryLink as a result of the CMA's action. The company has gone from nothing to a healthy market share for freight traffic despite not being able to offer its customers any long-term visibility on contracts. One can only an imagine how successful the company would have been if it had been able to do so."

"The uncertainty surrounding MyFerryLink is likely to continue in our view and we have come to the conclusion that it's in the best interests of Eurotunnel and its shareholders that we bring this issue a close."

Earlier this month, MyFerryLink claimed a fresh judicial victory against the CMA. On 15 May, the UK Court of Appeal reversed a CMA decision banning the Eurotunnel-owned cross-Channel company from operating the Dover-Calais route, the regulator having previously ruled that fair competition regulations had been breached.

Last week, the CMA announced it would seek the permission of the Court of Appeal to lodge an appeal, even though, if granted, it would be heard in the Supreme Court. However, the Court of Appeal has denied such permission following arguments presented by My FeryLink's legal team, the ferry operator asserts.

A spokesman for the CMA confirmed that permission had been denied and said the Court of Appeal had yet to publish the reasons for its decision. “Now we have to consider carefully whether we want to go direct to the Supreme Court," the CMA spokesman added. An appeal would have to be submitted by mid-June.

geoff


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