Shipping company P&O plans to axe its Dublin-Liverpool ferry service in a blow to exporters and possibly workers after failing to agree terms on a new berth with the British port.
P&O said on Tuesday that it would end the service linking the Republic’s capital with Liverpool towards the end of 2023.
The company said it was unable to agree terms on a new berth for vessels serving the route with Liverpool Port.
It is understood that talks between the two sides failed to resolve a deadlock over the money that Liverpool’s owner, Peel Ports, sought from P&O in return for providing a new berth next year.
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Exporters are likely to feel the route’s loss keenly as P&O principally transported freight between the two ports. Simon McKeever, chief executive of the Irish Exporters’ Association, described the news as “a significant loss to exporters”.
It will also hit business goods from Britain, as large volumes of goods are shipped into Ireland on the route.
Businesses using the route could also face higher shipping costs in future. Freight on the P&O vessels is “unaccompanied”, that is placed on the ships by one party and collected at its destination by another, which is the cheaper way of transporting goods.
P&O explained that Peel had told the shipping company that its current berth would not be available after the end of this year.
“Without agreement with the port owner to provide a berth in Liverpool, it is impossible for P&O Ferries to continue operating on this route,” said the ferry company.
“Extensive negotiations with the owner of our Liverpool site to extend our lease at the port or find an alternative site for our Liverpool-Dublin service to operate from have been unsuccessful.”
A Peel Ports spokesman confirmed that the P&O service would no longer call into Liverpool once the existing contract expires at the end of this year.
P&O added that it was committed to serving Irish Sea customers and had explored all options to continue sailing on the route.
The company will continue sailing between Larne in Northern Ireland and Cairnryan in Scotland, according to its statement.
Around 60 jobs are at risk between Britain and Ireland as a result. P&O did not say how many worked in each jurisdiction. The company is beginning consultations with affected workers and says that, where possible, they will be redeployed within the business, or given aid in finding employment elsewhere.
Two vessels sail the route 24 times a week. The company will redeploy the ships to other parts of its network.
Seatruck Ferries is the only other company serving the Dublin-Liverpool route. Sources yesterday did not rule out the possibility that a new player would step in following P&O’s departure.
P&O said that it had worked to “ensure that where possible our customers affected by the intended closure of the Dublin-Liverpool route can access alternative services with other operators”.
