THE UK has torn up a controversial no-deal Brexit ferry contract awarded to an Irish company with neither a fleet of vessels, nor the experience to operate them, after Seaborne Freight's backer, Arklow Shipping that was secretly supporting the deal with the Department for Transport pulled out, reported The Guardian, UK
THE UK has torn up a controversial no-deal Brexit ferry contract awarded to an Irish company with neither a fleet of vessels, nor the experience to operate them, after Seaborne Freight's backer, Arklow Shipping that was secretly supporting the deal with the Department for Transport pulled out, reported The Guardian, UK. The decision by Transport Secretary Chris Grayling to award Seaborne Freight the contract worth GBP13.8 million (US$17.75 million) triggered a furore, garnering widespread criticism and ridicule.
It was one of three businesses offered contracts totalling GBP108 million in late December to lay on additional crossings from Ramsgate to alleviate congestion at Dover when Britain exits the European Union, despite the company never operating a Channel ferry service.
'Following the decision of Seaborne Freight's backer, Arklow Shipping, to step back from the deal, it became clear Seaborne would not reach its contractual requirements with the government. We have therefore decided to terminate our agreement,' said a DfT spokeswoman.
'The government is already in advanced talks with a number of companies to secure additional freight capacity - including through the port of Ramsgate - in the event of a no-deal Brexit.'
The contract was cancelled a day after Mr Grayling contacted Thanet district council to request it postpone a budget that would have closed down sections of the port of Ramsgate for use by sea freight.
Keeping the site open is costing local taxpayers GBP7,224 per day, according to a local source, and the council - which has already spent months in fruitless talks with Seaborne Freight - had proposed shutting it down to help balance the books.
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