Ferry company does not want 3rd year

Sousa Group clarifies position

The Diario carries a press release from ENM, part of the Sousa Group: “After two years of very large losses, ENM Ferries does not want to make the third year of contract as provided in the specifications”. This is one of the points of clarification that ENM issued yesterday, reacting to the recent news about the ferry connection between Madeira and Portimão.

The Sousa Group company begins by pointing out that the tender specifications provide for the maritime transport of passengers, vehicles and goods. Since the beginning of the operation, ENM has guaranteed the price list for passengers and cargo available at www.madeira-ferry.pt “We made a considerable commercial effort to try to be able to carry more cargo, and the vast majority of approaches were unsuccessful,” says the company.

The company also pointed out the price of sea freight in the container. From the mainland to Madeira, a 20-foot container costs €950 and a 40-foot container is priced at €1,550. From Madeira to the mainland, the 20ft container costs €394 and the 40ft container costs €600.

Regarding the subsidies for the transportation of cargo and passengers, the company reminds readers that “they cannot distort the market”. What is foreseen under the European Union are “passenger allowances and allowances for goods, regardless of the mode of transport. You cannot subsidize the transport of an orange just because it comes by ferry and not subsidize the orange that comes in a container ship. ”

“ENM and Grupo Sousa are prepared to respond to all market demands, whether by container ship, ferry or another mode of transport, as long as it is cost-effective and our customers and the market ask for solutions. Different shipping. We do not have ‘Soul States’ and we are prepared to respond to the challenges that the market poses, as we have always done” the statement concludes.

1 thought on “Ferry company does not want 3rd year”

  1. It’s highly commendable that ENM should clarify their reasons for wanting to discontinue and I can fully appreciate why they no longer want to “play” at running a ferry service to the mainland, after all I’ve always maintained the profitability of a Madeira – Mainland link is dependant on carriage of freight. Even more noble to disclose your freight rates !! as in a competitive market anyone letting that information slip would be “walking the plank” and swimming to the job centre by now.

    Slightly amusing that the translation of ARMAS from Spanish and Portuguese is weapons! ENM must have thought their ferry service had already been torpedoed this year when they negotiated the charter rate for the Volcan de Timanfaya . I have absolutely no idea what the cost would have been but to be the only ship available and require a reshuffle of their other ferries to cover that vessels absence on a profitable route – it wouldn’t be ‘mates rates’ for sure. The word from the Canaries end was that it had been a successful season with an average of 450 pax per trip, as they say ‘there’s two sides to every story’

    Looking at it logically any freight for the ferry service running from the Algarve would be expected to be new business from that area – little incentive for existing shippers to change from Lisbon and Porto (Leixoes) containerised service by incurring increased road haulage costs to truck your goods down to to Portimao also any existing clients preferring to ship on the ferry would mean lost revenue for your container service – ” robbing Peter to pay Paul ” and not having an all year round service no incentive to make long term contracts and deals beneficial to both parties.
    If you did decide to truck your goods on the Portimao route – how much would the haulier want? – after off-loading in Madeira his driver, truck and trailer lies idle for a week in Funchal awaiting the return of the ferry -again a financial disincentive.
    Clearly an all year round link to Lisbon with Sousa freight is the only viable option imo. – passenger and light goods only would require huge subsidies.

    As for next year? who knows, maybe Armas will take it on themselves – after all Canaries company Binter run PXO to FNC air link and I thought I read a while ago that Armas had to relinquish their Huelva – Canaries ferry service as part of the conditions when they took over Trasmediterrania so a crafty way of getting some trade back as Portimao isn’t too far away from Southern Spain.

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