The Commercial Appeal

Shipless firm loses Brexit ferry contract

- Jill Lawless ASSOCIATED PRESS

LONDON – The British government canceled a contract to ship goods to the country after it leaves the European Union with a company that turned out to have no boats and no experience running a ferry service.

Authoritie­s had been criticized for the $18 million deal with Seaborne Freight, part of plans to keep trade flowing if Britain leaves the EU without a divorce deal.

The U.K. Department for Transport said Saturday that it had ended the contract because an Irish firm that was backing Seaborne Freight, Arklow Shipping, had withdrawn its support.

The department said no taxpayer money had been transferre­d to the company. It said the government was “in advanced talks with a number of companies to secure additional freight capacity” if there is a no-deal Brexit.

Britain is due to leave the EU on March 29 but British businesses fear a no-deal Brexit will cause gridlock at ports by ripping up the trade rulebook.

Criticism of the deal increased when it was discovered that part of Seaborne’s website appeared to have been copied from a food delivery firm.

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