Irish Continental (ICG) is turning away container business on the Dublin-Holyhead route due to lack of capacity. The company said it would be unable to meet increased demand for roll-on/ roll-off freight services on the route until its new €100 million (£78.76 million) Ulysses ferry comes into service in a year.

ICG managing director Mr Eamonn Rothwell said increased demand in the container business reflected the "attractiveness" of the Dublin-Holyhead route to companies with just-in-time delivery schedules. This was because the route was the shortest between Ireland and Britain.

Business turned away by ICG on the route was being taken on its other routes and by Northern Ireland carriers, said Mr Rothwell after yesterday's a.g.m. The ferry company carried 91,000 cars since December, up 11.3 per cent, while business at its container terminal division rose by 14 per cent. This contrasted with a 2.2 per cent increase in the roll-on/roll-off business.

Company chairman Mr Tom Toner said ICG would be forced to seek price increases exceeding those implemented to offset the loss of duty-free if the cost of fuel remained at its current level. He warned that the company's interim results in the six months to April 30th would be less impressive than those of last year, due to duty-free's withdrawal.