The fall-out from the UK's awarding of post-Brexit ferry contracts has continued with news that P&O Ferries is suing the government.

The UK operator is objecting to a pay-out of £33m ($44m) to rival Eurotunnel to settle a court case against the UK state.

This legal battle was prompted by transport minister Chris Grayling awarding deals worth more than £100m to DFDS, Brittany Ferries and Seaborne Freight to provide vessels on routes other than Dover to Calais, to prevent congestion after a potential no-deal Brexit.

Now The Guardian has reported that P&O wants compensation for being left at an unfair disadvantage by the Eurotunnel pay-out.

A spokesman for P&O Ferries was quoted as saying: “We have repeatedly made clear during decades of providing vital transport services between Britain and the continent that we are happy to compete with other providers on a level playing field.

"We also fully accept that it was prudent of the government to make contingency plans to protect international supply chains in the event of a hard Brexit."

But he added: “We do not believe that the payment of £33m of public money to Eurotunnel to settle its legal challenge to these plans is fair or reasonable. It is explicitly designed to be invested in the tunnel’s infrastructure and if left unchallenged would put our services at a competitive disadvantage.”

Seaborne Freight famously had no ferries at the time of the award in December and has since lost the contract.

The UK government is not commenting on the P&O legal action.