DFDS / LD lines make a move on SeaFrance

UK PROFESSIONAL DRIVERS FORUMS EURO DRIVING FORUM (INTERACTIVE)
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FROM DFDS;
BID FOR ASSETS OF SEAFRANCE
DFDS A/S
Company Announcement

BID FOR ASSETS OF SEAFRANCE

Copenhagen, 2011-07-26 15:54 CEST (GLOBE NEWSWIRE) – Company Announcement no.
18/2011

– Joint bid by DFDS and Louis Dreyfus Armateurs Group

DFDS and the French shipping Group Louis Dreyfus Armateurs have today made a joint bid for certain assets of SeaFrance. The bid is subject to certain conditions, including approval by relevant competition authorities.

The bid is made in response to an announcement by the receiver appointed for SeaFrance requesting bids to be made by 26 July 2011. SeaFrance went into receivership in June 2010.

SeaFrance operates a short-sea passenger and freight route between Dover and Calais deploying three ro-pax ships and one ro-ro ship. In 2010 the route transported 2.9m pax and 551 ths freight units.

If the bid is successful DFDS and Louis Dreyfus Armateurs will form a jointly owned company, with DFDS as the majority shareholder, to acquire the assets of SeaFrance. It is furthermore the intention to transfer DFDS’ Dover — Dunkirk route and Louis Dreyfus Armateurs’ ferry shipping activities, LD Lines, to the joint company.

Louis Dreyfus Armateurs is a French shipping Group operating in several market segments, including bulk, offshore and ferry shipping. The company’s ferry shipping activities, LD Lines, were established in 2003 and currently comprises four routes.

Background of bid
The participation in the bid, and cooperation with Louis Dreyfus Armateurs Group, reflects DFDS’ strategy of building a European integrated shipping and logistics network.

From Louis Dreyfus:

Joint bid by Louis Dreyfus Armateurs Group and DFDS

Louis Dreyfus Armateurs Group and Danish company DFDS have today made a joint bid for certain assets of SeaFrance. The bid is subject to certain conditions including approval by relevant competition authorities.

The bid is made in response to an announcement by the receiver appointed for SeaFrance requesting bids to be made by 26 July 2011. SeaFrance went into receivership in June 2010.

SeaFrance operates a short-sea passenger and freight route between Dover and Calais deploying three ro-pax ships and one ro-ro ship. In 2010 the route transported 2.9m pax and 551 ths freight units.

If the bid is successful DFDS and Louis Dreyfus Armateurs Group will form a jointly owned company, with DFDS as the majority shareholder, to acquire the assets of SeaFrance. It is furthermore the intention to transfer DFDS’ Dover — Dunkirk route and Louis Dreyfus Armateurs’ ferry shipping activities, LD Lines, to the joint company.

DFDS is Northern Europe’s largest integrated shipping and logistics company.

Operating a network of 25 routes with 50 freight and passenger ships, DFDS provides freight solutions in Europe with trailers, containers and rail.
DFDS has 5,000 employees in 20 countries and revenue may reach DKK 12bn in 2011.The company is headquartered in Copenhagen and is listed on NASDAQ OMX.

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Got to be a good thing!

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skids:
Got to be a good thing!

Agreed, nothing could be worse than Sea France as it is right now.

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You’ve got crystal balls Harry :laughing: :laughing: :laughing:

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I dare say it’ll all fall apart 3 months down the line when LD get bored. I’ve never known such an erratic ferry company.

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There is over-capacity on the Dover-Calais route, there has been since the recession started and Sea France have obviously been in trouble for a long time. From a driver’s point of view I would always have said “Sea Chance” was my least favourite option for a Dover crossing.

Even though the crossing takes longer my favourite short sea route was the Dover-Dunkirk Norfolkline ferry, which was taken over by DFDS last year- I haven’t been on it since the takeover- but if DFDS take over the Sea France fleet and refurbish the ships to their standard then this can only be a good thing.

I was on the “Mouliere” last week, the usual story, rude and surly staff, vending machines all broken, half the ship taped off, toilets flooded, toilet doors banging open and closed like a deserted saloon in a Wild West film, but best of all in the Routiers’ drivers restaurant they were charging £1.68 for a 400ml paper cup of Coca-cola, fizzy orange etc.

Bye Sea France, don’t let the door hit your arse on the way out!

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My thoughts are that DFDS have jumped into bed with LD in order to appease the french unions and thus giving a greater chance of the deal going through.

I would guess that 2 years down the road DFDS will buy out LD’s minority share in much the same way P&O did with their Stena tie-up.
Given it’s a joint venture and 2 parties are planning on pooling current vessels and routes along with running their new aquisitions, I’d summise that DFDS wouldn’t allow LD to jerk everyone around by chopping and changing vessels and routes.
If it goes ahead, I’m guessing there will be some stability on the eastern channel (as well as a price war)

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Derf:
If it goes ahead, I’m guessing there will be some stability on the eastern channel (as well as a price war)

I understand that there is already a Price War going on at Dover, It costs £150 to ship an articulated lorry DOCA today, it was £250 in 2007.

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Harry Monk:

skids:
Got to be a good thing!

Agreed, nothing could be worse than Sea France as it is right now.

It seems much like the French equivalent of British Leyland.

Last month, the EC competition authority announced an investigation into cash injections into SeaFrance by its state-owned parent, SNCF. It will decide whether the €223 million (US$317m) had breached rules on state aid.

Whenever operation stack has been used, it is generally because the red element of Sea France have been in dispute, the equipment is tat, and unfortunately has gone from being my favourite crossing in the beginning of the noughties to the worst short sea crossing, it soon slipped to the equivalent of a Greek ferry company.

LD Lines offered a great service from Newhaven to Dieppe, but it is sometimes just not feasible with a rush job

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LD Lines is a strange old company. They seem to want to be a ferry company but never stick around on any route long enough to build a decent business. Portsmouth - Le Havre could be a decent business but they only do one round trip a day.