Call for State-owned shipping firm as Brexit hits landbridge
Call for State-owned shipping firm as Brexit hits landbridge
ANY attempt by the Government to establish a semi-State shipping company to ensure post-Brexit freight capacity between Ireland and mainland Europe would undermine the market and likely result in legal challenges, Transport Minister Eamon Ryan has warned.
The State was previously involved in the shipping industry through its ownership of B+I Line.
Mr Ryan was asked this week in the Dáil by Labour spokesperson on finance, public expenditure and reform, Gerard Nash, if the Government should create a new semi-State shipping firm “in view of the fact this is a vital link in the supply chain here that is not in public hands”.
Mr Nash described the current private commercial shipping operations as a “monopoly”.
“The Government considers
State intervention to establish a semi-State shipping sector or to establish State shipping links in the current circumstances and in the context of the end of the UK’s transition period, would be likely to undermine a market response, resulting in an insufficient, inadequate and costly intervention being put in place,” said Mr Ryan in a written response to Mr Nash.
“Such an intervention would be likely to result in legal challenges from incumbent shipping providers, create difficulties for the State in extricating itself from the shipping market, would result in breaches of EU state aid rules and consequent requirements for the repayment of the state aids with interest, with resulting adverse impacts on the viability of any companies receiving such aid,” he added.
B+I Line was sold by the government in 1992 to Irish Continental, which subsequently went on to expand significantly. B+I Line was operating a freight service to mainland Europe at the time it was acquired.
Stock market-listed Irish Continental is the main ferry player for roll-on/roll-off freight and passenger services between Ireland and the UK and Ireland and mainland Europe. Stena Line is also a significant operator.
There are also other freight operators providing shipping
services into and out of Ireland.
About 150,000 truck journeys a year are made by ferry between Ireland and mainland Europe.
Mr Ryan said that shipping firms have assured the Irish Maritime Development Office (IMDO) and his department that they will respond to any increased demand for direct connectivity at the end of the UK’s transition period.
He added that businesses have already been asked to consider moving to direct route options between Ireland and mainland Europe to avoid potential delays and the new procedures that will be introduced after the end of the year.
The IMDO is reviewing the conclusions and recommendations of the 2018 Landbridge Study, and in particular the issue of direct connectivity to continental ports. That assessment by the IMDO is due to be completed shortly. The report noted that the journey time to continental Europe for roll-on roll-off freight via the UK is 20 hours compared to up to 40 hours by direct sea routes.
The Minister said his department will continue to engage with ports, hauliers, shipping companies regarding the process and facilities at Dublin Port and Rosslare Europort to deal with traffic after the end of the UK’s transition period.