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City docks win £1m freight ferry deal from Portsmouth
Southampton docks has won business worth an estimated £1m a year from south coast rivals Portsmouth in a move that could have far-reaching political consequences.
Channel Island Freight service Heulin Renouf (HR) is to move its container ferry link between Jersey and Guernsey down the coast to Southampton in the near future.
It is a major blow for Portsmouth City Council, with the defection coming just weeks after it paid £2m to buy ailing firm Mainland Market Deliveries (MMD's), the only major freight importer in the Navy city.
The Channel Island based firm is a massive part of MMD's business, leaving it reliant on banana importer Geest, which imports 70 per cent of the UK market.
Portsmouth councillors stepped in to save MMD when it emerged it was running at a loss, threatening the £2m rental income it generates for the authority annually.
Now a key plank of the business has gone, MMD's future and those of its 200 staff are again clouded in doubt.
At the time of the takeover, council leaders said that if MMD failed they would be forced to make budget cuts of almost £2m.
In February this year leader of the council Gerald Vernon Jackson, said: "The financial risk to us if we don't do this is huge. Our job is to make sure we look after public funds. If we don't go ahead with the deal we'll have to look for £1.9m-worth of cuts to public services."
Portsmouth City Council finance director Roger Ching yesterday said: "This news is clearly disappointing but the city council remains confident and determined to turn this business into a profitable enterprise."
At Southampton docks owner ABP there will be delight at the business win, which is payback for Portsmouth's poaching of Geest in 1988 after 21 years importing through Southampton.
Although a deal with ABP has yet to be finalised, HR is so confident bosses have handed in their notice at Portsmouth anyway.
Deputy port director Stephen Young said: "We are in advanced negotiations with Heulin Renouf and we are hoping they will conclude in the very near future."
HR director Michael Lefuvre said: "We have had a great relationship with Portsmouth but it is true that we have now given notice to Portsmouth and we are in negotiations with Southampton."
Martin Putman, Portsmouth Port manager said: "We are greatly disappointed that after 30 years Heulin-Renouf have decided to leave Portsmouth Port. We wish them luck in their new home, and hope it is a successful move for them."
HR plans to move its load on load off container ship Heulin Dispatch, pictured, to Southampton, where it will run a three-times-a-week service to Jersey and Guernsey. The 25-year-old 130-container capacity vessel is soon to be replaced by a bigger version capable of carrying 140 containers.
Channel Island Freight service Heulin Renouf (HR) is to move its container ferry link between Jersey and Guernsey down the coast to Southampton in the near future.
It is a major blow for Portsmouth City Council, with the defection coming just weeks after it paid £2m to buy ailing firm Mainland Market Deliveries (MMD's), the only major freight importer in the Navy city.
The Channel Island based firm is a massive part of MMD's business, leaving it reliant on banana importer Geest, which imports 70 per cent of the UK market.
Portsmouth councillors stepped in to save MMD when it emerged it was running at a loss, threatening the £2m rental income it generates for the authority annually.
Now a key plank of the business has gone, MMD's future and those of its 200 staff are again clouded in doubt.
At the time of the takeover, council leaders said that if MMD failed they would be forced to make budget cuts of almost £2m.
In February this year leader of the council Gerald Vernon Jackson, said: "The financial risk to us if we don't do this is huge. Our job is to make sure we look after public funds. If we don't go ahead with the deal we'll have to look for £1.9m-worth of cuts to public services."
Portsmouth City Council finance director Roger Ching yesterday said: "This news is clearly disappointing but the city council remains confident and determined to turn this business into a profitable enterprise."
At Southampton docks owner ABP there will be delight at the business win, which is payback for Portsmouth's poaching of Geest in 1988 after 21 years importing through Southampton.
Although a deal with ABP has yet to be finalised, HR is so confident bosses have handed in their notice at Portsmouth anyway.
Deputy port director Stephen Young said: "We are in advanced negotiations with Heulin Renouf and we are hoping they will conclude in the very near future."
HR director Michael Lefuvre said: "We have had a great relationship with Portsmouth but it is true that we have now given notice to Portsmouth and we are in negotiations with Southampton."
Martin Putman, Portsmouth Port manager said: "We are greatly disappointed that after 30 years Heulin-Renouf have decided to leave Portsmouth Port. We wish them luck in their new home, and hope it is a successful move for them."
HR plans to move its load on load off container ship Heulin Dispatch, pictured, to Southampton, where it will run a three-times-a-week service to Jersey and Guernsey. The 25-year-old 130-container capacity vessel is soon to be replaced by a bigger version capable of carrying 140 containers.
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