Business opportunity?

[Farmer John]

Anyone fancy starting a shipping company to run some car ferries? They seem to be giving money away.

https://www.bbc.co.uk/news/business-46714984

No previous experience needed (or ships).

[BobClay]

Just when I thought Brexit couldn't be any more f**king farcical, I have to give it to this government, they over-reach your cynicism every time.

Still, think about it … a 'shell' shipping company that doesn't have any ships, and yet receives miilions of pounds of tax payers money.

Sound familiar ?

What say there are some Tory politicians with slightly fatter offshore bank accounts somewhere hidden behind the scenery ?

[erimus]

None of the other ferry companies available are UK owned...

Geoff

[Farmer John]

There may be some sense behind this, but I am cynical at any time of year and especially at New Year.

Anyone got any old ships? I am sure if we trawled around on the site we could get something going.

[Farmer John]

They hope to start dredging out the port

Soon

Soon

[IJC 38]

Some of the biggest recognised shipping companies in the world do not actually 'own' any ships, they are all either managed, time chartered or bare boat chartered in, so personally I don't see what the problem is. Just because there are no 'named' vessels at this time does not mean that negotiations between Seabourne and Ferry owners are not going on and neither party will disclose their hand, which is quite normal in chartering circles. Uninformed reporting again by their 'Shipping Correspondents' who wouldn't know port from starboard.

[Dartskipper]

The ship brokers will be rubbing their hands. I wonder if charter rates for RoRo's have suddenly increased?

[Engine Serang]

Somebody, somewhere has just made a killing. And its not me.


What I fail to understand is what use will extra ferries be when the real problem will be shortage of Custom Officers and their support staff. Answers on a postcard please.

[Tmac1720]

The Channel Tunnel closed then?.... Ship brokers are offering a BOGOF on ferries just now (buy one get one free) anybody fancy becoming charterers?

[BobClay]

If the government gives me 14 million quid I'm up for it. (I'm sure I can search for a hollowed out log off the Cayman Islands.)

[Engine Serang]

If I was offered BOGOF terms on cans of Harp Lager I would jump at it.

[erimus]

There are a number of narrow beam ferries 'out there'......and as a Shipbroker I would love the chance of chartering a few for a short while.
geoff

[Engine Serang]

I'll get my old mucker Sajid Javid to give you a bell.

[Farmer John]

I have just looked at the https://seabornefreight.com/ website. The top of the page is a picture of some bulwark with the word "FORE" on it in large letters. Is this not the normal warning for golfists to shout before they take a mighty swing at their balls?

I also note that we are all being alarmists, as their site clearly indicates that they are up and running with their enterprise.

"Freight Ferry Services operate between Ramsgate and Ostend and offer facilities uniquely tailored to the needs of the freight industry and their drivers. Including:

Bookable crossings to facilitate delivery scheduling and avoid the uncertainty of existing services."

See? no problems.

[Dartskipper]

"It might be advisable to bring a spare pair of oars with you."

[erimus]

One of the things about forums is that everyone is an expert, or a joker but rarely both. ......



However, as an update, here is today's lunchtime bulletin courtesy of Lloyds Loading List:-



UK government has confirmed that it has entered into three contracts worth around £100 million with ferry operators DFDS, Brittany Ferries, and Seaborne Freight to provide additional ferry capacity and services into the UK as part of ‘no deal’ EU Exit contingency planning, but has acknowledged that “this will not be sufficient to mitigate the full level of disruption possible in a worst-case scenario”.

In total, it said the additional freight capacity delivered by these three contracts “will be equivalent to around 8% of normal flows across the Dover Straights”, adding. “Whilst this will not be sufficient to mitigate the full level of disruption possible in a worst case scenario, it will enable the government to provide essential capacity for the highest priority goods including medical supplies.”

In an update published today, the UK government insisted that the ambition of government remained “to ensure an orderly exit from the EU”, but that, the Department for Transport (DfT) had been “undertaking a wide range of work to mitigate the impact on the transport system of a no-deal EU Exit”.

It added: “Significant work has taken place to understand the effect that this would have on the UK border and the impact on flows of goods between the UK and EU. Whilst the government has made clear it is committed to ensuring frictionless movement across the UK border, the scale of the potential disruption to the Dover Straits, if additional customs checks were introduced in Calais, Coquelles and Dunkirk, where freight services disembark, could be very significant.

“Given the importance of these routes, contingency work is being undertaken to mitigate potential impacts and ensure that goods can continue to flow into and out of the UK as freely as possible.”

Chris Grayling, Secretary of State for Transport, commented: “A priority for government is to ensure that the Port of Dover and the Eurotunnel can continue to operate at the maximum possible capacity. The government is therefore working with both organisations and our French counterparts in Calais, Coquelles and Dunkirk so that any disruption or drop in throughput is managed effectively and mitigated.”

He insisted that “there is a clear willingness to reach agreements which secure the continued operation of these vital trade routes in all scenarios, and the government remains confident that there will not be major disruption to the flow of goods across the border. Nevertheless, the potential for a decline in throughput remains possible in a worst-case scenario, and the government is therefore planning for all eventualities.”

As one of several contingency measures being undertaken, the Department for Transport has completed a procurement process to secure additional ferry capacity between the UK and the EU, “which can be used for critical goods such as medical supplies in the event of disruption to cross-Channel crossings”. He said “a negotiated procurement procedure without prior publication was concluded as allowed for by Regulation 32 of The Public Contracts Regulations 2015”, explaining: “An accelerated competitive process was carried out in order to ensure that capacity can be in place in time for a No Deal exit whilst at the same time securing value for money for the taxpayer. The Department approached a number of shipping providers capable of providing additional freight capacity in order to ensure fairness for the market and also engaged external expertise to ensure value for money for the taxpayer.”

Following extensive criticism that the government had selected one company that had no vessels and no experience of operating them, the government noted: “Bids were evaluated on the basis that they met our strategic aims of providing additional freight capacity for a No Deal Brexit scenario. Bids were reviewed against a number of criteria, including journey time, quality of delivery plans, and the pricing submitted by bidders.

“The bids we received to provide capacity were subject to technical, financial and commercial assurance as part of standard due diligence procedures and consistent with that undertaken on all government contracts. This included a price benchmarking exercise to ensure that the taxpayer was getting good value for money, and assurance on the delivery plans of our bidders.

“The department commissioned external advice from three respected professional advisers to support this work. Three contracts were agreed with operators totalling around £103 million.”

Grayling added: “Two contracts went to established operators, Brittany Ferries (£46. 6 million) and DFDS (c£42. 6 million). These contracts provide for additional capacity between the UK and EU on existing routes, via the provision of additional services and additional vessels. The contracts agreed with them include early termination provisions and other typical contractual provisions to ensure government has the right protections in place, such as in the event of an operator becoming insolvent.”

The government explained that the routes agreed with Brittany and DFDS “are away from the Dover Straits, and will run from the Ports of Immingham and Felixstowe (DFDS) and Poole, Plymouth and Portsmouth (Brittany) to destinations in Germany (Cuxhaven), the Netherlands (Vlaardingen) and France (Caen, Cherbourg, Le Havre, and Roscoff).”

He continued: “The third contract was awarded to Seaborne Freight (£13. 8 million), a new operator to provide a new service between Ramsgate and Ostend. Seaborne Freight has been preparing for some time to operate services on this route. The management team of Seaborne has extensive experience in the shipping and maritime sector, including the operation of ferry services on cross-channel routes, freight brokerage, port management and vessel chartering.

“Whilst the broad contract structure is the same for all three contracts including the provision that payment will only be made in arrears and on the successful provision of services, the Seaborne contract is also subject to the achievement of a range of key milestones including in relation to finalising funding and vessel chartering agreements.

“As with many operators in the sector, it is not uncommon that they do not own their own vessels and will be chartering them through third parties. The department has reviewed their plans for sourcing vessels with the support of external advisers.

“A number of large institutional investors are backing this service and the government’s contract represents a small part of the overall investment required by Seaborne to open this route. These lenders undertake their own rigorous due diligence before making financial commitments, providing a further level of assurance to government.”

Grayling concluded: “Seaborne and my department are also working closely with Thanet Council to ensure that Ramsgate Port is ready to take new services. A programme of work to prepare the infrastructure is underway.

“In terms of next steps, the Department for Transport will provide support to and oversight of all operators to ensure that these services are delivered to meet the terms of the contracts agreed. I will provide further updates to Parliament at the appropriate points.”



geoff.

[BobClay]

And some of us are also cynics …. and if you're anything else with this entire fiasco … then you are neither expert nor joker. You're probably in it for the stash. They have words for that too: 'spivs,' 'crooks,' 'middlemen.' I can think of a few others, but I suspect the moderators wouldn't be overly impressed.

[Dartskipper]

Is the linkspan still there at Weymouth? Might be another option if it is.

[Varley]

I don't know. To see an opportunity and to discount it as being beneath one's dignity to pursue is rather a peculiar obstinacy.

[BobClay]

I do believe Philip Green had a similar outlook.

[Varley]

One swallow doth not a Summer make and BHS was only one of nine Arcadia businesses. Should Seaborne threaten to be as successful as any of those in their prime I would want a bit of them.

Before we slate Green too much for running a pension fund not fully funded let us remember that the MNOPF would almost certainly be in a similar boat had it had only one contributor.

[BobClay]

Well that's all right then. One evil excuses another. Perish the thought Mr Green should suffer … !!!

[erimus]

And some of us are also cynics

There is always room for a cynic Bob,otherwise you wouldn't have anything to do!

cheers
geoff

[Engine Serang]

Originally Posted by erimus

There is always room for a cynic Bob

cheers
geoff

Make that two.

[Dave McGouldrick]

Originally Posted by Engine Serang

Make that two.

There might be a number of people here queuing to join that club.