DFDS To close Irish Sea routes

DANISH ferry operator DFDS seaways is to cut two lossmaking routes from the North West to Dublin in a move which could affect up to 200 jobs.

The company has announced that it is to close routes from Birkenhead and from Heysham in Lancashire to Dublin. IT said that 50 Dublin-based proside jobs would be affected by the closure, but unions have estimated that a further 140 crew members could also be affected.

The company said that the routes had made “substantial losses due to considerable overcapacity on the market”.

“This is a result of a sharp decline in demand since 2008 and a lack of adjustment
of capacity in the market. Against this background it has not been possible to develop a business plan that would lead to a significant result improvement within a reasonable period of time.

“Likewise, it has not been possible to achieve a sale of the activities.”

DFDS inherited the routes following its merger with Norfolkine in July 2009, but last month it sold two other Irish Sea routes from Birkenhead and Heysham to Belfast to Stena Line. it operated two ferries on the Belfast routes, which Stena has taken on, and three ferries on the Dublin routes.

“We are exploring a range of options for our three ships deployed on the routes and their crews, including a sale, charter or alternative deployment on DFDS’ route network,” the company said in a statement.

CEO Niels Smedegaard has estimated that the firm has racked up losses of more than 30m on the Irish routes over the past two years.

“The market conditions in the area are quite simply too difficult and unfortunately we do not envisage any improvement in the near future,” said Smedegaard.

The routes will close be the end of the month.