MANX jobs and ferry passengers services could be in jeopardy following the loss of major freight customers, the boss of the the Steam Packet has warned.

Tesco and Shoprite have confirmed they have signed up to rival Mezeron’s Douglas to Liverpool lift-on, lift-off container service, which was launched last Monday.

Steam Packet chief executive Mark Woodward told iomtoday a ‘significant proportion’ of freight revenue had been lost.

He said: ‘This is very, very bad news for the Isle of Man. We have to fight this. This is about the survival of a company that has served the Isle of Man well for 180 years.’

Mr Woodward said freight revenue subsidised passengers fares and to retain and win back freight business, rates would have to reduced which would mean passengers’ fares going up.

But with the user agreement putting a cap on fare increases, the other option was to cut back on passenger services which he said were presently ‘well in excess’ of the bare minimum set out by the user agreement with the government.



You reap what you sow, springs to mind on this one.



Direct copy from the IOMonline website.

Quote - He said: ‘This is very, very bad news for the Isle of Man. We have to fight this. This is about the survival of a company that has served the Isle of Man well for 180 years.’

What a load of donkey twoddle, they dont like it when their monopoly is challenged do they? you will now have to settle for a reasonable profit rather than an obscene profit Mr Woodward.

I bet the old emotional blackmail about costing jobs will be next, we had all this hogwash from Manx Telecom when Cable & Wireless brought a rival phone service to the Island a few years ago, and has anyone lost their jobs? NO is everyone now enjoying cheaper phone calls? YES

I say bring it on!!

We will try to keep up service says SPC

STEAM Packet bosses have vowed to do their utmost to maintain the frequency of services in the face of lift-on lift off cargo competition.

The company says the user agreement means it is at a disadvantage if it competes with an operator that can ‘pick and choose’ the profitable business but is under no obligation to operate less profitable services.

Steam Packet chairman Robert Quayle said:

‘Sadly, if the User Agreement is undermined by the intervention of an unregulated operator which is subject to none of the obligations which we willingly undertake, the range of services offered by the Steam Packet Company may be unsustainable in their present form.

‘However, we wish to reassure passengers, freight customers and island residents in general that the company will be doing its utmost to prevent any reduction in quality or quantity in its services; and that we will work closely with our passengers, freight customers and Government, in order to overcome these latest challenges.

Unions Unite, the RMT and Nautilus will be handing out leaflets to customers outside Douglas’s Tesco store on Saturday warning that ‘unfair’ ferry cargo competition will lead to a serious situation .

Unite’s Steve Salter said:

‘We’re not saying shoppers should boycott Tesco and Shoprite. But we are pointing out that Manx jobs could go and sailings reduced. Savings won’t be passed onto shoppers – they won’t see prices coming down on the supermarket shelves.

Earlier this week the Steam Packet’s chief executive, Mark Woodward, said:

‘This is about the survival of [the] company.


Direct copy from the IOMonline Website

(04-11-2010, 12:12 PM)Malcolm Wrote:

We will try to keep up service says SPC

STEAM Packet bosses have vowed to do their utmost to maintain the frequency of services in the face of lift-on lift off cargo competition.

The company says the user agreement means it is at a disadvantage if it competes with an operator that can ‘pick and choose’ the profitable business but is under no obligation to operate less profitable services.

Steam Packet chairman Robert Quayle said:

‘Sadly, if the User Agreement is undermined by the intervention of an unregulated operator which is subject to none of the obligations which we willingly undertake, the range of services offered by the Steam Packet Company may be unsustainable in their present form.

‘However, we wish to reassure passengers, freight customers and island residents in general that the company will be doing its utmost to prevent any reduction in quality or quantity in its services; and that we will work closely with our passengers, freight customers and Government, in order to overcome these latest challenges.

Unions Unite, the RMT and Nautilus will be handing out leaflets to customers outside Douglas’s Tesco store on Saturday warning that ‘unfair’ ferry cargo competition will lead to a serious situation .

Unite’s Steve Salter said:

‘We’re not saying shoppers should boycott Tesco and Shoprite. But we are pointing out that Manx jobs could go and sailings reduced. Savings won’t be passed onto shoppers – they won’t see prices coming down on the supermarket shelves.

Earlier this week the Steam Packet’s chief executive, Mark Woodward, said:

‘This is about the survival of [the] company.


Direct copy from the IOMonline Website

There you go Malcolm, right on que, they play the 'Manx Jobs' card!!

£10m lost revenue at Steam Packet?

THE user agreement was supposed to protect consumers, passengers, the government and the Steam Packet.


But the launch of ferry freight competition has exposed the short-comings of a deal to which the island is tied until the year 2026.

First signed back in 1995, against a history of failed Manxline competition, service disruptions and seafarer strikes, the agreement was intended to secure sea services and provide a frequency and stability of vital lifeline routes.

Providing exclusive use of the roll-on, roll-off linkspans at Douglas harbour, the deal effectively protected the Steam Packet from competition in a market which it insists is a natural monopoly.

But in return, the Steam Packet has to guarantee minimum frequency and capacity on services, many of which they say are uneconomic.

Under its terms the Steam Packet also has to provide a minimum of 936 return sailings a year to the North West ports in the UK and 63 round-trips to Ireland. During the summer, there has to be a daily service to Liverpool. Inbound, the deal outlines a specific number of lane metres per week of freight.

It also stipulates that the overall basket of fares offered can only be increased by a maximum of Manx inflation less one half of one per cent. From next year that changes to a maximum of Manx inflation.

The agreement, revised in 2002 and 2004, commits the company to invest heavily in new vessels and to provide a fastcraft service. Fastcraft are expensive to run in terms of fuel consumption.

Steam Packet chief executive Mark Woodward says the launch of competition by Mezeron was ‘unexpected’.

The threat has come not from another roll-on, roll-off operator but from a lift-on, lift-off service where containers are craned onto the vessel.

‘It’s old technology – nobody would have guessed it was going to make a comeback,’ says Mr Woodward.

So how much freight business has the Steam Packet lost with the defection of freight firm Graylaw, which transports goods for Shoprite and Tesco, to Mezeron?

Industry insiders believe it could be as much as 30 per cent, amounting to possibly up to £10 million lost in revenue. Whatever the true figure, Mr Woodward concedes it’s ‘substantial’.

By how much is Mezeron under-cutting the Steam Packet on freight rates?

The Steam Packet charges about £1,800 per round trip to transport a box trailer from Heysham. The Manx Independent understands that Mezeron is charging £750 per single leg for an equivalent 40ft container. Tesco has eight to 10 trailers a day shipped to the island and Shoprite not far off that number.

Price, then, is clearly a factor, although both Tesco and Shoprite cite environmental considerations with the savings in road miles for the trip from the warehouse to Seaforth docks, Bootle, rather than the longer distance to Heysham.

So, given the constraints of the user agreement, what options have the Steam Packet to meet the challenge?

To win back freight business, it will have to reduce freight charges. And, to offset that, it will have to put up passenger fares where possible and cut services, perhaps to the minimum set out by the deal with the government.

If that happens, job losses look likely.

The user agreement specifies that the overall basket of fares can rise no more than inflation less 0.5 per cent, but that still allows for freight rates to fall and passenger fares to rise. The squeeze is likely to be put on special offers.

Mr Woodward says that service levels in terms of capacity and frequency are currently far in excess of those stipulated by the user agreement. Routes, then, could be cut back in frequency and capacity to that bare minimum.

Some commentators suggest the Steam Packet will dispose of the smaller fastcraft Snaefell and severely cut back the Irish sailings or even dispense with them altogeher. Winter services could be reduced and daytime sailings of the Ben-my-Chree could also be restricted to certain days of the week.

If the company breaches the user agreement, that agreement fails.

Mr Woodward says the user agreement is no longer working and needs to be revised. The company could go to Department of Infrastructure to request that the contract be amended.

As the Steam Packet boss points out, there are unlikely to be any passenger ferry operators waiting in the wings to take over loss-making services.

The Scottish Assembly Government is piloting a Road Equivalent Tariff policy on the Caledonian MacBrayne ferries linking the Western Isles of Lewis, Harris and the Uists with mainland Scotland and the inner Hebrides.

It means ferry firms cannot charge motorists more than it would cost for them to physically drive the distance between, say, Ullapool and Stornoway were there a land bridge, the shortfall being backed up by Scottish Assembly Government subsidies.

The scheme has brought a big rise in tourism to the Western Isles and, following initial introduction in 2008, it has been extended for a further trial period. However, with the squeeze on public spending here in the wake of the VAT blackhole, Tynwald is likely to be reluctant to go down this route.



Direct copy from the IOMonline website

I remember Duke Line, that was supposed to provide competition to the Stem Racket's high monopoly fares but it was hit by all sorts of suspicious mechanical disasters and eventually folded. Since then the Irish Sea has been one of the world's most expensive stretches of water to cross and Manx people have been forced to pay higher prices in the shops just to fill the pockets of the shipper. The chickens are indeed coming home to roost. The Steam Racket's loss will be the Island's gain as supermarket prices fall and the extra money left in shoppers' pockets can be spent on other things, expanding the Island's economy.

(11-11-2010, 01:10 PM)Tomcat Wrote: I remember Duke Line, that was supposed to provide competition to the Stem Racket's high monopoly fares but it was hit by all sorts of suspicious mechanical disasters and eventually folded. Since then the Irish Sea has been one of the world's most expensive stretches of water to cross and Manx people have been forced to pay higher prices in the shops just to fill the pockets of the shipper. The chickens are indeed coming home to roost. The Steam Racket's loss will be the Island's gain as supermarket prices fall and the extra money left in shoppers' pockets can be spent on other things, expanding the Island's economy.

Agree 100% Tom, and i'm bemused by the Manx Jobs comment, i think he meant Eastern European jobs may be in jeopardy? thats where 90% of the crew seem to be from in the last few years!! I havent heard many Manx or scouse accents in steam packet uniforms for a long time.

This week IOMSP paid of Manx Staff and replaced them with eastern European staff, on talking to a IOMSP crewman today it was said the one of the first things to go was the TT competitors boat for next year

(15-11-2010, 10:31 PM)George Wrote: This week IOMSP paid of Manx Staff and replaced them with eastern European staff, on talking to a IOMSP crewman today it was said the one of the first things to go was the TT competitors boat for next year

A number of years ago I was told by a then, very senior member of the Manx community that in his opinion there were two things that would kill of the TT. 1, The health and safety people. 2, The Isle of Man Steam Package Company. is it heading that way ?

THE Manx Government has no intention of nationalising or subsidising the Steam Packet,
Chief Minister Tony Brown told Tynwald.

Unions and Steam Packet staff staged a protest outside the Legislative Buildings on Tuesday calling for the government to intervene to ‘save the island’s lifeline’.

Steam Packet boss Mark Woodward had warned that services could be cut and fares could rise following the launch of cargo freight competition in the shape of Mezeron’s new container service to Liverpool.

In Tynwald, Mr Brown, replying to a question from Graham Cregeen MHK (Malew and Santon), insisted: ‘The Council of Ministers feel that it would be inappropriate to recommend paying a subsidy to the Isle of Man Steam Packet Company.’

David Cannan MHK (Michael) said that, since 1984, the ferry operator had become an investment vehicle for overseas ownership.

"Would it not be more appropriate for serious discussion to be given now for a return to Manx – island – control of the Steam Packet Company and to have a settled future."


Read the complete report on the IOMonline website - HERE

(19-11-2010, 04:51 PM)Malcolm Wrote:

THE Manx Government has no intention of nationalising or subsidising the Steam Packet,
Chief Minister Tony Brown told Tynwald.

Unions and Steam Packet staff staged a protest outside the Legislative Buildings on Tuesday calling for the government to intervene to ‘save the island’s lifeline’.

Steam Packet boss Mark Woodward had warned that services could be cut and fares could rise following the launch of cargo freight competition in the shape of Mezeron’s new container service to Liverpool.

In Tynwald, Mr Brown, replying to a question from Graham Cregeen MHK (Malew and Santon), insisted: ‘The Council of Ministers feel that it would be inappropriate to recommend paying a subsidy to the Isle of Man Steam Packet Company.’

David Cannan MHK (Michael) said that, since 1984, the ferry operator had become an investment vehicle for overseas ownership.

"Would it not be more appropriate for serious discussion to be given now for a return to Manx – island – control of the Steam Packet Company and to have a settled future."


Read the complete report on the IOMonline website - HERE

How does this leave people when it comes to bookings. Last year we had to pay in full about nov/dec time, would it be sae to do that now. Would we get guarantees to protect our money.

If you want to play safe pay by credit (not debit) card and then you're covered by the credit card company if you dont get your goods, (in this case your travel) I think as long as the value of the transaction is more than £100 (check your card issuers small print to make sure)

But I wouldnt worry too much about your money, this is just a bit of predictable sabre rattling by the steam Packet, they've had their monopoly broken so they're threatening to take their ball home.

I'm just pleased the Manx government appear to have stood up to them for the first time in a long time, the job loss blackmail obviously hasnt worked so I wonder what the next stunt will be??

Union big gun steps in to fight for the Steam Packet

Union militant Bob Crow is entering the fray in the battle over the future survival of the Steam Packet.

Controversial Mr Crow, the defiant left-wing general secretary of the Rail Maritime and Transport Workers union (RMT), was due in the island today (Tuesday) to meet Infrastructure Minister Phil Gawne to put the case for government intervention to defend seafarers’ jobs.

Steam Packet boss Mark Woodward has warned that jobs could be lost and services cut following the launch of cargo competition by Mezeron.

Tesco and Shoprite are among the big- name customers which have switched a significant proportion of their business to the new lift-on, lift-off container service through freight company Graylaw.

Mr Crow says Mezeron is unfairly under-cutting the Steam Packet by paying oveseas crews on Estonian-registered vessels at ‘rock-bottom’ wages.

Steam Packet workers were due to lobby the 41st British and Irish Parliamentary Assembly plenary meeting at the Villa Marina this morning (Tuesday)

And at midday trade unionists from across Liverpool were to converge on the Port of Liverpool building at Pier Head to demonstrate in support of the Steam Packet campaign and against shipowners employing seafarers on rates below the minimum wage.


Reads the complete story on the IOMonline Website - HERE

Is this the alternative for people getting to TT 2011 !

Steam Packet freight row: government keep out

The Manx government draws up contingency plans for reduced ferry services but will not interfere in fair competition issue.

The Manx government is meeting with Steam Packet bosses to discuss threats to ferry services and jobs after a rival freight service set up.

Unions say the Steam Packet is being undermined by Mezeron which is crewed by seafarers on 'poverty pay'.

Workers are urging the government to come up with a contingency plan in the event that services are lost.

Infrastructure Minister Phil Gawne said the government will not interfere in the operations of private companies.

--- / ---

Infrastructure Minister Phil Gawne says commercial decisions by the Steam Packet are a matter for the company, even in the face of possible service cuts.

Mr Gawne says he is aware of the worries of staff, which centre around the competing freight service run by Mezeron.

They claim the company could cut back on passenger services under the user agreement with the government, as the competition takes its toll on profits.

Mr Gawne says any such decision would be for Steam Packet management to make:

--- / ---

Minister Gawne said it's the debt that the Steam Packet and its associated companies carry that is the root of the problem, and for the company to move forward a strategy of how to remove the debt needs to be formulated.

I fully support Mr Gawne's comments above, why should the government use tax payers money to bail out a private company.

If the steam packet hadnt been so greedy in the first place there wouldnt have been any trade for Mezeron to pick up, but steam packet's overinflated freight costs made it viable for another operator to come in and do the same job for a lower cost and still make a profit.

Just what a union official thinks he will achieve by barking at the government over the steam packet's grievance is questionable? it's nothing to do with the government as Phil Gawne has clearly stated.

A solution to Steam Packet problem?

An MHK is calling for the Steam Packet Company to be placed into public ownership.

Michael member David Cannan has tabled a motion for this month's Tynwald, asking for a committee to look into the matter.

The motion says: 'Tynwald views with concern the current trading problems facing the Isle of Man Steam Packet Company and considers that it is of fundamental importance to the Isle of Man that it has reliable and financially sound passenger and freight ferry services with the United Kingdom'.

Should it be appointed, the select committee would consist of three members, with powers to take written and oral evidence to evaluate the benefits of the Steam Packet being placed in public ownership.

The committee would report back to Tynwald by March 31 next year.

The Steam Packet has been in the spotlight since Ramsey-based Mezeron set up a rival, container freight service, between Douglas and Liverpool, in October.

Unions representing the Packet's 300 Isle of Man-based staff have lobbied members of Tynwald, pointing out the threat the increased commercial pressure poses to jobs and passenger ferry services.

There have been calls for the government to get involved, but last week Infrastructure Minister Phil Gawne said commercial decisions by the Steam Packet were a matter for the company, even in the face of possible service cuts.

No need for Steam Packet committee, says minister

Forming a committee to assess the feasibility of nationalising the Steam Packet would have no benefit at this stage.

That's according to Infrastructure Minister Phil Gawne, who was among the 25 MHKs who voted against the move on Wednesday.

A Tynwald select committee was suggested amid concerns the Steam Packet may axe jobs and reduce passenger services as it competes with a rival freight service started by Mezeron.

Mr Gawne says the options for putting the Steam Packet Company into public ownership are unfeasible and he's holding ongoing talks with officials from both firms:


Listen To Related Audio Clip