Tender Confusion

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It was announced that Baleària has been awarded the operation of the Tarifa-Tangier Ville maritime route.

This was based on a Baleària press release.

Baleària’s €135 million proposal included the construction of two zero-emission electric fast ferries with a capacity for 800 passengers, as well as the electrification of ports and battery recharging systems. The vessels were going be built by Astilleros Armon in Gijón, with construction expected to take two and a half years.

However, FRS/DFDS is surprised by thus announcement. So is Ferry Shipping News: this is confusing.

“We have become aware that one of the participating shipping companies has self-proclaimed itself as the winner of the tender, despite the fact that the awarding procedure has not been formally concluded. We consider this action to be disrespectful both to the port authority responsible for overseeing the process and to the potentially affected employees, who deserve a transparent and legally compliant resolution of this tender,” says FRS/DFDS in a reaction.

The FRS/DFDS media release says:

“Additionally, this shipping company has submitted an offer that we consider reckless and based on unrealistic projections and fictitious minimum traffic levels that evidently cannot be achieved.”

“Likewise, we observe with concern that certain elements presented by the shipping company that self-proclaims as the winner, such as the supposed provision of electricity in Morocco to operate an electric propulsion ship, lack technical support and realistic basic coordination. It is not recorded that the port authority of Tangier Ville has been consulted, despite the fact that their participation is essential to guarantee the necessary infrastructure and energy supply.”

“This lack of coordination highlights the inconsistent nature of the project, which seems more focused on scoring points in the technical evaluation than on its actual implementation.”

“It should be noted that the shipping company FRS Iberia Maroc / DFDS has obtained the highest score in the technical proposal, being the only participant that has fully respected the terms of the specifications and presented a plan of realistic and viable minimum traffic. This approach reflects a commitment to the effective

fulfilment of contractual obligations, aligned with the objectives of the port and in defense of the current legality.”

“According to the specifications, specifically its “Rule 19”, the failure to meet the committed minimum traffic for two consecutive years may be cause for “termination of the concession”, which jeopardises the operational stability of the port.”

“The text of the specifications is explicit in this regard: “The failure to meet this activity or minimum traffic for two successive years may be cause for termination of the concession.”

However, the promises of minimum traffic of this shipping company seem to be based on fanciful unrealistic estimates, whose non-compliance is foreseeable from the start.

It stems from the belief that ‘if I get in, it will be impossible to get me out’

Currently, European Union laws protect both consumers and the industry.”

FRS/DFDS urges the port authority to:

1. Review the technical score assigned to proposals based on unfeasible projects or without sufficient technical support, especially those projects that have not been explicitly approved by the competent authorities in Morocco.

2. Ensure that the allocation is made in accordance with the requirements of the specifications, evaluating only offers that are technically and operationally viable.

3. Guarantee that the process is transparent, impartial, and adjusted to the standards of integrity required by European and national regulations.

FRS/DFDS trust that the competent authorities will make the necessary decisions to award this tender to a shipping company that has strictly complied with the conditions of the specifications, presenting achievable minimum traffic and demonstrating its technical and operational viability on both shores.

Press releases: Baleària FRS/DFDS

DFDS Acquires International Transport Network Connecting Türkiye And Europe From Ekol Logistics

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DFDS has completed the acquisition of Ekol Logistics’ international transport network, strengthening connections between Türkiye and Europe. The revised (*) agreement includes updates to the terminal agreement with Yalova Port and reinforces Türkiye’s role as a key manufacturing hub.

Key highlights:
Expected 2024 revenue: DKK 3.3bn
3,700 employees joining DFDS
Acquisition value: DKK 1.8bn

“This acquisition enhances our ability to support Türkiye’s growth and strengthens our Mediterranean business,” says Torben Carlsen, CEO of DFDS.

The network spans 10 European countries and integrates road, ferry, and rail, positioning DFDS for significant growth in the region.

(*) On November 1st, DFDS announced that it had terminated the share purchase agreement, and the transaction would consequently not take place. (Source: DFDS)

Brittany Ferries Chairman Responds to Jersey’s Ferry Contract Decision

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Brittany Ferries’ chairman, Jean-Marc Roué, has issued a strong response to Jersey’s chief minister regarding the ongoing ferry contract dispute. In a letter to Lyndon Farnham, Mr Roué expressed both surprise and concern over Jersey’s decision not to accept the joint Condor-Brittany Ferries bid, particularly given Guernsey’s approval following a thorough nine-month tender process.

While confirming Brittany Ferries’ intention to participate in Jersey’s new bid process, Mr Roué also addressed recent critical comments made in the States of Jersey Assembly and reported in the media.

“The company I chair exists solely to prioritise customer satisfaction,” Mr Roué stated in his letter. “All financial benefits from our activities are fully reinvested into the company. For instance, we are currently undergoing the largest fleet renewal in our history, with five new-generation ships, including two powered by cleaner hybrid LNG-electric technology.”

The letter underscores Brittany Ferries’ commitment to environmental sustainability and operational excellence amid the evolving tender process.

Source: Brittany Ferries Newsroom

GNV Announces Two Top Management Appointments to Strengthen Commercial Strategy

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GNV, a ferry company that is part of the MSC Group, has announced the appointment of Matteo Della Valle as its new Chief Commercial Officer and Matteo De Candia as the new General Manager of GNV in Spain.

“These new appointments represent an important step in the evolution of the company, which is committed to consolidating its position in the passenger and freight maritime transport sector in the Mediterranean, with a focus on growth in international markets,” the company stated.

Matteo Della Valle, in his new role, will expand his responsibilities to include the coordination of activities for both the passenger and cargo segments. His extensive experience in passenger sales management and his integrated vision of commercial operations are expected to strengthen GNV’s presence and competitiveness in key markets.

Matteo De Candia, formerly the Freight Commercial Director, will now lead GNV’s operations in Spain. His goal will be to consolidate activities in the Spanish market across both passenger and freight sectors. With his deep knowledge of the cargo industry, he is well-positioned to enhance growth opportunities in the Balearic Islands, a strategic region that represents approximately 20% of the company’s business.

Estonian State Fleet: Driving Sustainable Maritime Operations

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The Estonian State Fleet (ESF), established on 1 January 2023, prioritises reducing CO2 emissions by modernising its ferry fleet and exploring low-emission technologies. It oversees over 250 state-owned vessels, including seven ferries that connect small islands like Kihnu, Ruhnu, and Vormsi. ESF also conducts specialised maritime tasks such as hydrographic surveys and buoy laying, tenders for new vessels, and develops efficient inter-island transport routes.

Although, the ferries are operated through public procurement agreements by private companies, ESF as the owner of the vessels will carry out the procurements and install the energy saving and emission-cutting equipment, such as replacing the onboard conventional lighting to LED lighting, install new propellers and fuel monitoring systems.

Source and more info: Central Baltic Programme

Photo: Passenger catamaran Runö serves the route to Ruhnu island

Green Transition for Denmark’s Shortest Ferry Route!

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Since 2010, the ferry VENØ has operated Denmark’s shortest ferry route, connecting Kleppen and Venø. With support from Trafikstyrelsen (Danish Civil Aviation and Railway Authority), the municipality is now set to embark on a green transition for this route.

OSK Design has worked closely with the municipality to develop an electrification project aimed at reducing emissions and enhancing the environmental sustainability of the ferry service. This shift to electric propulsion marks a significant step in Denmark’s mission to advance cleaner, greener maritime transport.

The next steps include a public tender for the ferry’s conversion and finalising plans for harbour infrastructure upgrades to accommodate the new electric ferry. These initiatives will ensure that both the ferry and its facilities are future-ready for sustainable transport.

Source: OSK Design on Linkedin

IMAGE CARDS

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Özata Shipyard kicked off the NB101 project, the first of two double-ended electric/hybrid ferries with a capacity of 60 vehicles, designed by The Norwegian Ship Design Company for Torghatten Nord.

Photo source: Özata Shipyard on Linkedin

GLEN SANNOX, the first of two dual fuel ferries being built by the Port Glasgow shipyard, has been formally handed over to Caledonian Maritime Assets Ltd (CMAL).

Launched into the Clyde in November 2017, she is the first vessel in the UK to have a dual-fuel propulsion system which can use both MGO or LNG.

Finnlines Financial Summary: January–September 2024

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  • Revenue: Reached €547.2 million, a 7% increase from €513.2 million in 2023.
  • EBITDA: Improved by 7% to €140.8 million, up from €131.7 million in the previous year.
  • Net Income: Decreased by 8%, resulting in €52.1 million, compared to €56.9 million in 2023.
  • Debt Reduction: Interest-bearing debt dropped by €70.1 million to €387 million.

Q3 2024 Highlights:

  • Revenue: Increased by 7% to €189.2 million.
  • EBITDA Growth: Saw a substantial 36% rise to €57.1 million.
  • Net Income: Notably grew by 85%, reaching €27.9 million.

Operational Updates:

  • Passenger travel surged, especially on the Naantali–Långnäs–Kapellskär route, with a 122% increase.
  • A new UK freight route was launched, connecting Finland and Sheerness.
  • Fleet modernisation continues, aligning with environmental regulations; three new green-fuelled vessels are in procurement.

Outlook: Finnlines anticipates improved performance, supported by EU economic recovery, operational efficiencies, and green initiatives. However, some concerns:

  • Economic Headwinds: The beginning of 2024 saw challenges from high interest rates, inflation, and slow economic growth, especially in key markets such as Finland, Germany, and Sweden. These factors have affected freight and passenger demand, though signs of recovery are emerging.
  • Geopolitical Tensions: Ongoing conflicts, particularly the Ukraine crisis, add uncertainty to the business environment. Any escalation could impact trade flows within the EU and Finnlines’ routes.
  • Labour Disruptions: Early 2024 saw strikes in Finland that disrupted cargo volumes. Although impacts seem contained, further labour issues could hinder operations and revenue growth.
  • Cybersecurity Risks: The increased likelihood of cyberattacks has led Finnlines to focus on cybersecurity measures, essential for safeguarding operations but requiring continuous investment and vigilance.
  • Environmental Compliance Costs: Finnlines is aligning with the EU’s new environmental regulations, including the Emissions Trading Scheme and Fuel EU Maritime regulations starting in 2025. Compliance necessitates significant investment in new vessels and technology, increasing capital expenditures.
  • High Debt Levels: While debt decreased, Finnlines still carries substantial interest-bearing debt (€387 million), making it sensitive to any future interest rate increases that could impact financial expenses.

Overall, Finnlines is navigating these risks by investing in fleet modernisation, expanding routes, and implementing efficiency measures, which should help mitigate some of these concerns over time.

DFDS Q3 2024 Interim Report – Working Through Headwinds

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“Despite market headwinds, we continued in line with our organic growth ambitions to protect and grow volumes in Q3 on the back of our network strength,” says Torben Carlsen, CEO.

Q3 2024

  • Revenue up 11% to DKK 8.0bn Organic growth was 4%
  • EBIT reduced 11% to DKK 785m
  • Adjusted free cash flow of DKK 396m
  • CO2 ferry emission intensity lowered 1.6%

Outlook 2024 (updated 1 November 2024)

  • EBIT of DKK 1.5-1.7bn
  • Revenue growth of 8-10%
  • Adjusted free cash flow of around DKK 1.2bn

Read the Q3 2024 interim report here:

DFDS Terminates EKOL Acquisition

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In April 2024, DFDS entered into a share purchase agreement to acquire the international transport network of Ekol Logistics.

As certain contractual conditions (company announcement no. 24 of 9 April 2024), have not been satisfied by the agreed deadline, DFDS has terminated the share purchase agreement and the transaction will consequently not take place.