Brittany Ferries' services in Cork key to life beyond Covid, Brexit

New Cork-Roscoff midweek service is one of a number of actions Brittany Ferries is taking to navigate its way beyond pandemic impacts

Fri, 08 Apr, 2022 - 08:50

Joe Dermody

Loyalty to valued staff and reduction of CO2 emissions share top table priority in the ‘co-op’ ethos of Brittany Ferries — sitting alongside the usual business concerns of delivering profits to shareholders, and giving customers quality service and value for money.

Founded in 1973 by a co-op of Breton farmers, led by visionary farmer Alexis Gourvennec, Brittany Ferries has just endured the two toughest financial years in its history. It is now emerging with a five-year plan to trade its way out of the debts taken on to weather the impacts of Brexit and Covid.

The French government gave Brittany Ferries a one-off €45m grant to help the company weather Covid and Brexit losses. Shipping group CMA CGM also invested €25m in its freight businesses.

The shareholders, still mostly comprising the Breton farmers who founded the company, are rock solid behind the recovery plan, including the commitment to its c.2,500 staff, all of whom reside in France. All nationalities can work for the company, but they must live in France.

Brittany Ferries' five-year plan to trade its way back from its Covid-imposed debts contrasts markedly with both P&O and Irish Ferries, both of whom have drawn widespread criticism for laying off hundreds of UK and Irish-based staff and outsourcing the work to overseas agency workers.

“With our business model, it was logical for the French Government to support us, but we are in no way a public company,” said Christophe Mathieu, CEO of Brittany Ferries, visiting Cork this week to promote the permanence confirmed for new Cork-Roscoff midweek services. “We serve our shareholders, who fully understand how Brexit and Covid have impacted the business.

“We are coming out of Covid. We are asking some productivity efforts of our staff to help repay the Covid debts. Increasing productivity will mean less seafarers on board vessels doing more work to deliver the same high-quality service to passengers.

“Thankfully, our raison d’etre is not entirely focused on profit. It makes a big difference if your shareholders accept a reasonable profit margin. That means that we deliver a premium service, while we also remain competitive.

“The French Government has compensated the company for around one-third of the losses caused by Covid. Two-thirds of the Covid debt remains, and it is up to the management and staff to work to reimburse that debt. We aim to repay the loan over the next five to six years.”

Brittany Ferries employs around 2,500 people, including 1,600 seafarers. Some of the roles are seasonal, with winter crossings lighter than spring, summer and autumn. Its 12 vessels serve France, UK, Spain and Ireland via 14 maritime routes.

Covid has severely impacted the business. In 2019, it carried 2,498,354 passengers. In 2020, the total was 752,102 passengers. Freight of 201,554 units in 2019 fell to 160,377 units in 2020.

As UK-French trade dominates its books, with the majority of its revenue generated in UK pounds, Brittany Ferries has also been severely impacted by Brexit. Sterling currency fluctuations from the 2016 Brexit vote to its introduction in January 2021 hit its net profit by €115m.

Still, consolidated revenues totalling €469m were reported in 2019, comparable to previous years, thanks to positive action taken by the business. Covid impacts more than halved those revenues to €202m in 2020.

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And yet the mood onboard the MV Armorique, docked in Ringaskiddy earlier this week, was distinctly upbeat. The new Cork service is one part of its diversification strategy, helping reduce a little the company’s dependence on its core UK trade.

In 2022 and 2023, Brittany Ferries’ very first ships to be powered by more eco-friendly LNG will arrive, reducing CO2 emissions by 46%. It is working on an ‘Atlantic Coast Rail Network’ project, which may at some future time see a modal shift from road to rail for onward freight transport.

Speaking onboard the MV Armorique, Brittany Ferries president, Jean-Marc Roué, who is also the newly appointed Honorary Council of Ireland in Brittany, reaffirmed the company’s core values.

Mr Roué, who is also a farmer, said that he and Christophe Mathieu and the entire Brittany Ferries team continue to deliver the vision of Alexis Gourvennec, who passed away in 2007.

“We have worked and battled very hard to secure the future of Brittany Ferries, and we have done this while staying true to our human values,” said Mr Roué. “This has only been possible because of the dedicated support of our shareholders.

“Two years ago, myself and Christophe discussed the doubling of our service to Cork. We believe there are great opportunities for growth of passenger and freight business between Ireland and France.”

Brittany Ferries has confirmed that its new midweek Cork-Roscoff sailing Cork will now be a permanent feature of its schedule. The MV Armorique will sail overnight each Wednesday. The Pont Aven sailings also continue each Saturday.

Passenger bookings are already up 35% versus 2019, prior to Covid severely curtailing the global travel sector. With Brittany Ferries carrying marginally more French tourists than Irish (55:45), the permanence of the new mid-week sailing was welcomed this week by Brittany Ferries’ route partners Port of Cork, as well as by Tourism Ireland.

Tourism Ireland CEO, Niall Gibbons, said: “France is one of our top four markets for Irish tourism and in 2019, we welcomed 557,000 visitors from France to the island of Ireland, whose visits delivered €283m to the economy. We are rolling out an extensive programme of promotional activity in France throughout 2022.”

Ireland has done much to promote the Wild Atlantic Way, the Ancient East and other prime attractions to French tourists. Along with Tourism Ireland, Fáilte Ireland, Cork Chamber and local business and tourism stakeholders, the MV Armorique launch event also featured an input by co-hosts, the Port of Cork Company.

“Today is a momentous day for us,” said Conor Mowlds, chief commercial officer for Port of Cork. “Brittany Ferries has been an anchor tenant for us for over 40 years, both for passenger and freight traffic.

“They were invaluable to Irish businesses when Brexit happened as they needed security for their supply chain. A lot of businesses that would have moved freight via the UK landbridge prior to Brexit are now using ferry services to go directly to Europe.

“Port of Cork and Brittany Ferries have been allies and trading partners for over 40 years. The new midweek service continues the business and cultural links that we have shared all that time.”