Axe finally falls on Isles of Scilly ferry service after months of uncertainty

Shipbuilding firm Harland & Wolff announced this morning it is pulling the plug on ferry services between Cornwall and the Isles of Scilly.

A new ferry services operated by the company was due to start earlier this year but the launch was halted due to funding issues.

Scilly Ferries had started taking bookings from the beginning of May to coincide with the World Pilot Gigs Championships and has been providing customers with alternative crossings.

Harland & Wolff were planning to compete with the 104-year-old Isles of Scilly Steamship Company (IOSSC) to run services between the islands and the mainland.

But in an announcement this morning Harland and Wolff confirmed it was pulling out of the South West.

The company also announced it was parting company with its chief executive John Wood.

The news came in a statement to the Stock Market.

The statement said: “The company further announces that in accordance with the provisions of the service agreement of Mr John Wood, chief executive officer of the company, the company has terminated his employment with effect from 31 July 2024.

“As a result, and in accordance with the provisions of the service agreement, Mr John Wood is no longer a member of the board and has left the company with immediate effect. As announced previously, Russell Downs and Alan Fort are scheduled to join the board as soon as the necessary on-boarding  and due diligence procedures have been completed.”

The statement added: £Finally, the Company announces that it is withdrawing all passenger services between Penzance and the Isles of Scilly with immediate effect.

“The company remains focussed on growing the business in its four key delivery centres (Belfast, Appledore, Methil and Arnish) and will be winding down business lines that are deemed to be non-core for the company.

“Accordingly, the fast ferry service will not be operationalised and discussions are ongoing to dispose of the fast ferry.”

Malcolm Groat, chairman of Harland & Wolff said: “We are grateful to our lenders in continuing their funding commitment to support Harland & Wolff Group’s ongoing stabilisation and long-term strategy objectives.

“The board look forward to Russell Downs and Alan Fort joining us once their appointment formalities are completed and, in the meantime, I wish to place our thanks to John for his invaluable contribution to the company’s business and wish him the very best in his future endeavours.”

It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources in continuing to grow the core business across our four delivery centres. This decision aligns with and brings us back to our fundamental five markets and six services strategy. Our ferry service team will be working closely with passengers and other counterparties to ensure a smooth transition out of this business.”