Ferry operator ICG said today that trading in the first quarter was "broadly in line with expectations" but warned that fuel costs were €2.5 million more than last year.
Spaeaking at the company's AGM today ICG chairman John McGuckian told shareholders that trend of falling passenger numbers but rising freight traffic had continued in the first quarter of 2006.
He said car volumes are down 9 per cent while general passenger traffic is also weaker as a result of intense competition from low cost airlines on routes to Britain.
However roll-on roll-off freight volumes are up 4 per cent broadly in line with economic growth rates while container volumes are in line with 2005.
Fuel costs were approximately €2.5 million more than in 2006, Mr McGuckian said but he said much of the increase had been passed on to customers by way of higher fuel surcharges.
"We have adjusted our passenger capacity through a reduction in the frequency of our fast craft, Jonathan Swift, from three round trips per day to two which will also mitigate the effect of the higher world oil price. The schedule remains under constant review," he added.
Mr McGuckian said the controversial restructuring announced in late 2005 which saw a number of jobs outsourced to foreign workers on lower wages is now virtually complete.
"This process is on target to deliver the planned level of savings and align our cost base more closely with our international competitors," he told the meeting.
Mr McGuckian also announced that ICG and the Port of Belfast have reached agreement to develop a new container terminal at Herdman Channel in Belfast.
The development, which has already commenced will increase the Port's container handling capacity by 40,000 units on an annual basis and will be operational in Autumn 2006.