P&O keeps options open for ferries

The boss of shipping giant P&O today refused to rule out the eventual sale of the group’s troubled ferry business.

Robert Woods told The Financial Times the priority was to get the division on a solid footing, before deciding what to do with it.

It comes a month after P&O unveiled an overhaul of its ferry arm, which included axing four routes and around 1,200 jobs, in a bid to mirror its more successful ports business.

Mr Woods said in an interview published today: “Our task today is to get the ferries right, restructure them, get them on a proper financial footing.

“Once we have done that and once we have succeeded – which is by no means a foregone conclusion – we have the choice of what we do with them.”

He also defended P&O’s decision to retain its 25% stake in Dutch shipping firm P&O Nedlloyd. There had been speculation that a Norwegian shareholder may be interested in buying out P&O’s share.

The division is benefiting from better management and is performing better after “very poor” results in the past, he said.

Mr Woods, who joined P&O in 1971, added that he is keen to do his job for as long as the market and the P&O team have confidence in him.

P&O’s restructuring, which the company hopes to be largely in place by the middle of next year, will mean the axing of three of its four Portsmouth crossings as well as one of its Irish Sea routes.

On the Dover-Calais route, six ships will be operated compared with seven at present, although rescheduling means service frequency at peak times will be unchanged.

At the time of the announcement, Mr Woods said he “greatly regretted” the job losses, but that he was determined to see a major improvement in profitability.

P&O, whose total routes operated will be reduced from 13 to nine, currently employs 3,600 sea-going staff and 2,500 shore-based workers.

The group said in August that half-year losses at the ferry division widened to £25.1m (€36.2m) from £19.9m (€28.7m) amid strong competition involving low-cost airlines, other ferry companies and Eurostar.

But a strong performance by the ports and container shipping businesses left the group upbeat about its prospects.