DFDS and Louis Dreyfus Armateurs have decided to form a new joint company that will combine DFDS’ and LD Lines’ routes in the Channel. From 1 July, the new company will operate nine passenger and freight ferries on four routes in the Channel and one in the Mediterranean. DFDS will own 82 % of the company and LDA 18%.
DFDS and shipping group Louis Dreyfus Armateurs (LDA) have today entered into an agreement to form a new company that combines DFDS’ and LD Lines' ferry routes in the Channel and one route between France and Tunisia. The new company is expected to start operations on 1 July 2012. DFDS will own 82% and LDA 18% of the new company.
The following routes will be included in the new company:
- Dover-Dunkirk (Currently DFDS)
- Dover-Calais (DFDS & LD Lines in partnership)
- Portsmouth-Le Havre (Currently LD Lines)
- Newhaven-Dieppe (Currently LD Lines)
- Marseille-Tunis (Currently LD Lines)
LD Lines is a French ferry company and a 100% owned subsidiary of LDA. It was established in 2003 and currently operates four routes of which one route, St. Nazaire-Gijon, will not be included in the joint venture. LD Lines will transfer four chartered ships and one owned ship to the joint venture.
DFDS operates a network of 25 ferry routes and has extensive logistics activities. In the Channel, DFDS operates three ships on the Dover-Dunkirk route and, in partnership with LD lines, two ships on the newly inaugurated Dover-Calais route. Both operations will be transferred to the new company.
“The new company expands DFDS’ route network in line with DFDS’ strategy of creating a European shipping and logistics network. By combining the capabilities and operations of LD Lines and DFDS, a new and stronger company is formed that is well positioned to deliver the ferry services that are required by our customers in the very competitive market on the Channel,” says Niels Smedegaard, President & CEO of the DFDS Group.
“This new company confirms our strategy to create a European leader in the Channel ferry business. We strongly believe that this is the right answer to the many challenges the industry has to cope with and are confident this fully integrated network will offer our clients a unique flexibility” says Gildas Maire, President of LD Lines.
Overview of operations in new joint company
* 1 ro-pax ship, NORMAN SPIRIT, is currently chartered from LD Lines to the Dover-Calais route.
**Estimated volume/revenue for a full year of operation. New company is expected to start operations on 1 July 2012.
***Route concession until 2014.
Flags and employment conditions will remain unchanged following the planned merger. Details about the future plans as well as the structure and management of the new company’s activities will follow later.
Louis Dreyfus Armateurs is a 160 years old, privately owned, French Shipping Group operating in several market segments apart from the before mentioned ferry shipping, including dry bulk transport & logistics, maritime engineering services and offshore activities.
DFDS is Northern Europe’s largest integrated shipping and logistics company.
DFDS Seaways operates a network of 25 routes with 50 freight and passenger ships , while DFDS Logistics provides freight solutions in Europe with trailers, containers, and rail.
DFDS has 5,100 employees in 20 countries, and revenues of DKK 12bn. The Company was founded in 1866, and is headquartered in Copenhagen, and listed on NASDAQ OMX Copenhagen.