Eurotunnel Group: Activity in the Third Quarter of 2014
Strong Revenue Growth (+7%)
- Third Quarter 2014
- Total Group revenues for the 3rd quarter of 2014 show an increase of 7% to € 343.9 million, compared to the 3rd quarter in 20131.
Cross-Channel Fixed Link
- Revenues from Shuttles grew by 7% to € 160.3 million.
Europorte: continued revenue growth (+8%)
MyFerryLink: revenues increased by 20% to € 30.3 million
Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA stated:
“This summer Eurotunnel set new records for traffic and this momentum is continuing. The energy in the UK economy and the application of the Marpol environmental regulations to the ferry companies from January 2015, strengthen the Eurotunnel Group’s competitive advantages”.
- First nine months of 2014: key events
- Cross-Channel Fixed Link
- Eurotunnel Le Shuttle broke several records this summer: 375,000 vehicles were transported in the month of August and the daily record was broken on three separate occasions2, reaching a new peak of 16,416 vehicles. Even more remarkably, more than 85,400 vehicles3 were carried during the week of 11-17 August 2014. This is the highest number ever reached in 20 years of operations.
- Eurotunnel, the leading rolling motorway with 1.5 million trucks transported each year, is building capacity to be able to carry 2 million trucks per year from 2020. The order for three new truck shuttles will deliver the capacity required to accompany market growth and to enable 8 departures per hour in future, compared to 6 per hour today. The terminal capacity will also be increased with the addition of a secure parking area for 370 trucks in Coquelles. The works on site are progressing on schedule.
- The introduction of new environmental regulations (Marpol convention) on the ferries from 1 January 2015 is likely to cause price rises in the cross-Channel market.
- CIFFCO, the opal coast international railway training centre created by the Eurotunnel Group, has obtained recognition for its “Train Driver” programme from the French body which accredits national certifications (Répertoire National des Certifications Professionnelles). Until now, SNCF has been the only company recognised for this programme, which has enabled Europorte to attract new customers. The recognition by the State of this increasingly important profession adds value to the job for the future, is at the heart of youth employment and calls upon many different skills: independence, respect for traffic regulations and safety procedures, customer information, etc. Recognition of this certification will also enable the delivery of a national vocational qualification through study with work placements.
- The 1000MW interconnector between the UK and France being developed by ElecLink (a joint venture between the Eurotunnel Group and Star Capital Partners) has now obtained all the necessary authorisations. The interconnection contracts have been signed with the National Grid Electrical Transmission in the UK and the Réseau de Transport d’Electricité in France . The agreement of the Intergovernmental Commission (IGC) and the British and French regulators (OffGEM and CRE) has been obtained, as has the derogation requested from the European Commission. It is expected to be in service at the end of 2016.
- The Port of Bordeaux has chosen Europorte to operate its terminals at Verdon, following a public tender consultation. A mixed industrial and logistics platform spread over 110km of the Gironde Estuary, the Grand Port Maritime de Bordeaux is situated at a crossroads of land river and sea routes and handles approximately 9 million tonnes of freight each year.
- Europorte continues its trajectory through new contracts in rail haulage. In July it opened a bulk fertiliser transport route with the Borealis group, a leading and innovative chemicals and fertiliser specialist, with 3 rotations per week between Grand Quevilly and Rochelle or Flambon, and one rotation per week from Grandpuits (Seine et Marne) to Champagne and the South West. This contract will enable Europorte to develop a presence on new routes on the Atlantic coast.
- New developments can also been seen at Europorte subsidiary, Socorail, such as the establishment of a dedicated rail traction team at the Induslacq industrial site at Bassin de Lacq, in the Pyrenees, and the creation of a dozen new track maintenance and ground handling jobs to manage the 4,000 wagon movements each year at Chem'pole 64, in Mourenx..
- GB Railfreight, the third largest operator in the UK continues to show strong growth in its order book. It has recently renewed contracts with Network Rail and Mediterranean Shipping Company UK. The new 5-year agreement with Network Rail brings significant additional activity to the business. The company has also signed major new contracts for the transport of aggregates. To keep up with business development, GB Railfreight has acquired 21 class 66 locomotives to bring its class 66 fleet to a total of 71 locos.
MyFerryLink has matched expectations, achieving 10% market share for freight over the period. The summer season has been a great success, despite the strong competition from the two other ferry companies who each operate almost twice as many cross-Channel services. The teams from the SCOP who operate the ships owned by the Group have proven their professionalism and the quality of service they can provide. The Eurotunnel Group is appealing against the decision by the Competition and Markets Authority (CMA) to prevent MyFerryLink from operating the Berlioz or the Rodin out of Dover, within six months of its order. As a reminder, the French competition authority gave its blessing to the acquisition of these ships by the Eurotunnel Group on 8 November 2012. Eurotunnel contests the argument that it acquired SeaFrance, when that company had been liquidated 7 months before the acquisition of the ships.
Get the full results in the attached document below.
- All comparisons with 2013 are made at the average exchange rate for the first nine months of 2014 of £1=€1.250
- On 2, 9 and 16 August, the traffic reached successively, 16,150, 16,416 and 16,167 vehicles, significantly higher than the previous record set on 17 August 2013 of 15,982 vehicles.
- Cars and coaches, compared to 82,967 vehicles in 2013