2007 Reference Document for Groupe Eurotunnel SA PDF file size

6. DESCRIPTION OF EUROTUNNEL GROUP’S ACTIVITIES6.2.3 Competitive position of the Shuttle ServicesThe Shuttle Services are in direct competition with the ferry services operated by P&O Ferries, SeaFrance,Norfolkline and SpeedFerries on the Short Straits corridor. They compete indirectly with the airlines and to a lesserextent with Eurostar.a) Ferry operatorsFollowing Hoverspeed’s withdrawal in October 2005, Eurotunnel Group’s main competitors for its Truck andPassenger Shuttle Services are the conventional ferry operators, namely P&O, SeaFrance, Norfolkline, andSpeedFerries.P&OP&O Ferries (‘‘P&O’’) is the largest ferry operator on the Short Straits link with six vessels. Since it withdrew from theDover-Zeebrugge route in December 2002 and shut down its English Channel services from Portsmouth in 2005,P&O has been stepping up its activity on the Dover-Calais link. Its direct competition with Eurotunnel Group in thepassenger and freight markets has consequently increased.In March 2006, P&O Ferries became a subsidiary of DP World, a worldwide operator of port facilities.SeaFranceSeaFrance is a subsidiary of the SNCF and operates five ferries on the Dover-Calais route. SeaFrance has upgradedits fleet and increased its capacity with two new vessels, the Rodin, which came into service in 2001, and the Berlioz,which came into service in 2005. SeaFrance also acquired a new ferry in the beginning of 2008 from SNCM toreplace two of its older ferries. This has not affected the available capacity.NorfolkLineA subsidiary of AP Moeller-Maersk, a Danish group, NorfolkLine operates three vessels transporting cars and truckson the Dover-Dunkirk link. NorfolkLine has renewed its fleet and increased its capacity with new vessels coming intoservice in 2005 and 2006.SpeedFerriesSpeedFerries, a British company, launched its fast catamaran service in May 2004. It transports passengersbetween Boulogne-sur-Mer and Dover. SpeedFerries currently has only one vessel, but the company continues toindicate that a second fast catamaran will be put into service on this route.Competitive advantages of Eurotunnel GroupEurotunnel Group considers that, under normal operating conditions, its Shuttle Service enjoys the followingcompetitive advantages over ferries:speed: the travel time between the French and British motorways is generally much shorter than via the ferries;frequency of departures: Eurotunnel Group’s Shuttle Service runs more frequently than any of itscompetitors; andreliability: the Shuttle Service, unlike the ferries, is unaffected by sea conditions and is not dependent onthe weather.33