No-deal Brexit ferry contract sparks issues

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No-deal Brexit ferry contract sparks concerns
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RamsgatePicture copyright
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Issues have been raised over the readiness of a British agency contracted by the federal government to run further ferries within the occasion of a no-deal Brexit.

Seaborne Freight was awarded a £13.8m contract this week to run a freight service between Ramsgate and Ostend.

The agency has by no means run a ferry service and an area councillor stated it could be inconceivable to launch earlier than Brexit.

The federal government stated it had awarded the contract in “the complete data that Seaborne is a brand new delivery supplier”.

The Division for Transport stated that “the additional capability and vessels can be offered as a part of its first providers”.

“As with all contracts, we fastidiously vetted the corporate’s business, technical and monetary place intimately earlier than making the award,” it added.

Conservative Kent county councillor Paul Messenger stated it was inconceivable for the federal government to have carried out ample checks on the agency.

“It has no ships and no buying and selling historical past so how can due diligence be achieved?” he requested.

Picture caption

Paul Messenger says Seaborne is a perplexing selection

Mr Messenger stated he did not consider that it was attainable to arrange a brand new ferry service between Ramsgate and Ostend by 29 March – the date when the UK is because of go away the European Union.

The slim berths for ships on the Port of Ramsgate imply there are only some appropriate business vessels, most of that are presently already in service, he stated.

Ferry providers haven’t operated from Ramsgate Port since 2013 after cross-channel operator TransEuropa collapsed, owing round £3.3m to Thanet District Council.

Mr Messenger stated he was “perplexed” on the selection of Seaborne Freight to run the service.

“Why select an organization that by no means moved a single truck of their total historical past and provides them £14m? I do not perceive the logic of that,” he stated.

However Seaborne Freight, which was fashioned lower than two years in the past to revive the Ramsgate-Ostend line, insisted it would launch its freight service between Ramsgate and Ostend earlier than 29 March.

‘Able to start’

Chief govt Ben Sharp stated the agency had been based by seasoned delivery veterans.

He declined to provide particulars on which ships it deliberate to make use of for the service, saying the data was commercially delicate, however stated they deliberate to start out operations with two ships earlier than “in a short time” growing to 4 by late summer time.

He stated dredging in Ramsgate Port would begin on four January in preparation for the freight service.

The agency stated it had initially meant to start out the service in mid-February however this had now been delayed till late March for operational causes.

It stated administrators and shareholders had been working through the previous two years to restart the service.

“This section has included finding appropriate vessels, making preparations with the ports of Ostend and Ramsgate, constructing the infrastructure, in addition to crewing the ferries as soon as they begin working,” the agency’s assertion added.

Easing congestion

The federal government has additionally awarded further, a lot bigger ferry contracts to French firm Brittany Ferries and Danish delivery agency DFDS, value £46.6m and £47.3m respectively.

The brand new contracts are a part of the federal government’s contingency planning, which goals to ease the potential for extreme congestion at primary port Dover if the UK leaves the European Union and not using a deal.

The division has warned that elevated border checks by EU international locations within the case of a no-deal Brexit might “trigger supply of vital items to be delayed”, and “vital wider disruption to the UK economic system and to the street community in Kent”.

Evaluation

By Joe Miller, BBC enterprise correspondent

The federal government has for a while now acknowledged that within the occasion of a no-deal Brexit, contingency plans at ports aside from Dover would have to be in place.

However it seems that Transport Secretary Chris Grayling’s division solely began awarding contracts to delivery corporations a number of weeks in the past, with no time left, it says, for a full public tender course of.

And whereas the 2 massive worldwide corporations enlisted to offer further capability have present fleets and enormous operations, Seaborne doesn’t, and has given few particulars on the way it will get a service up and operating in a matter of months.

The Division for Transport additionally wasn’t too eager on making a lot noise about these plans – it quietly posted notices of the awards on an EU portal on Christmas Eve, and the BBC was solely alerted to them by an information agency, Tussell.

And it is value noting that with out the award to Seaborne, the federal government can be a place the place the 2 beneficiaries of a no-deal Brexit had been a Danish and a French agency – primarily based, after all, within the EU.

The Division for Transport says the brand new contracts will present “vital further capability” to UK ports within the occasion of a no-deal Brexit,

The BBC understands that the three corporations chosen are more likely to retain a portion of their award even when their providers are now not wanted, because of a deal being reached with Brussels.

Nevertheless, in that occasion, the federal government would then search to promote the additional capability again to the market.

Labour MP Tonia Antoniazzi, a supporter of the Finest for Britain marketing campaign for a second referendum, stated: “By no means has it been clearer that our authorities is promoting us down the river over Brexit.

“A agency that has by no means run a ferry service earlier than has been awarded a multi-million pound contract and so they do not even have any ships. This concept ought to have been sunk earlier than it noticed the sunshine of day.”

Ed Davey, residence affairs spokesperson for the Liberal Democrats, stated stories that the federal government had signed a contract with “a ferry firm with no ferries” summed up the federal government’s “farcical” method to Brexit.

The UK is because of go away the EU on 29 March – following the results of the 2016 referendum.

It and the EU have agreed a withdrawal settlement – or “divorce deal” – and a political declaration outlining ambition for future talks – nevertheless it must be agreed by Parliament for it to return into pressure.

A vote by MPs on the deal had been scheduled for 11 December, however Prime Minister Theresa Could postponed it till January when it turned clear her deal can be rejected, resulting in widespread anger within the Commons.



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