A proposed ferry link between Ramsgate in the UK and Ostend in Belgium hangs in the balance ahead of a vote on budget cuts by the local council tonight.
Thanet District Council, which owns and operates Ramsgate Ferry Port, will vote on whether to cut £730,000 in funding for the port during its 2019-20 fiscal year.
The savings, which have been proposed in the council’s draft budget, could make it impossible to re-open Ramsgate Ferry Port.
Ferry company Seaborne Freight was awarded a contract in early January by the UK Government to restart the Ramsgate ferry link to Europe, which it is hoped will alleviate anticipated queues at the Port of Dover in the event of a no-deal Brexit.
The council says “financial pressures” have forced it to review a number of areas where efficiencies could be made in order balance its budget.
“The largest single item is related to the port, which is proposed to have £500k growth removed and a further £130k savings, totalling £630k (or £730k in a full year). This recognises that in the absence of a ferry operation, the port will undertake significant cost reductions to start to reduce its budgeted deficit,” the draft budget document stated.
“If there is not a confirmed, contracted ferry operation by the end of January when the Council budget report is published, the cost savings will be recommended and if approved, will be actioned.
“Any further delay would require alternative savings to be identified, which is too late to inform the presentation of a balanced budget to Council.”
Ramsgate Port’s website confirms that a contract has not yet been signed between the port and the ferry operator.
A ploy for more money?
The port made a loss of £2.4m during 2017-18, the latest report available, which was largely attributable to a £1.7m charge for central support services.
Two separate sources commented to TradeWinds that it would be unsurprising if the budget was indeed cut by the council as a ploy to extract more funding from the UK Government.
"Any new service out of the Port would have to, as a minimum, generate the level of income required to balance the budget,” a spokeswoman for Ramsgate Port said, quoted by Bloomberg.
"Should arrangements not be finalised, the council will be required to make the cost savings identified."
No-deal contingency planning
In early January, Seaborne was awarded an £13.8m contract to operate ferries between Ramsgate and Ostend, although the Government has said no payment will be made until the service is in operation.
Brittany Ferries received a contract worth £46m and DFDS was awarded a £47m deal to run extra services between the UK and Continent to take pressure off choke-point ports like Dover.
Seaborne has paid to have Ramsgate harbour dredged so that it can be accessed by larger ships with deeper draughts, according to BBC reports.
A council review conducted in late 2018 found that an investment of £26m would enable Ramsgate Port to deliver up to 24 sailings a day.
Transeuropa was the last company to operate a cross-channel Ro-Ro freight and passenger service out of Ramsgate, which was terminated in April 2013.
