Eurotunnel reveals plan to 'reverse decline'

Eurotunnel has revealed a new strategy which it hopes will reverse a "general decline that has been in evidence for several years".

The three-year plan, dubbed 'Project Dare', is designed to increase revenues and reducing costs in an effort to increase the operating margin by £70 million in 2007. The company confirmed that job losses would be a part of the strategy.

In a statement, Eurotunnel said: "Clearly, and unfortunately, the implementation [of the strategy] will lead to an impact on employment. The validation of the scale of capacity reduction requires substantial further work; it is only when this work is completed that Eurotunnel will enter into the process of consultation with staff and union representatives."

The reorganisation is due, the company said, to declining yields and increased market competition. In the prevailing climate, Eurotunnel said that its commercial strategy had been "unsuited to the present state of the cross-Channel transport market".

The company's half-year figures published on 26 July, and the traffic figures for the third quarter of 2004, found that the number of cars transported had dropped by 5%, the number of trucks by 4% and revenue by around 4%, compared with the same period in 2003.

In the passenger market, Eurotunnel has lost 25% in volume terms since the year 2000, and in the truck market, both revenue and the average yield per vehicle transported have been in decline since the beginning of 2003.

The strategy, which will see a "radical reorientation of our commercial policies", also involves more competitive rates for 50 key haulier customers designed to increase yield by 8-10% in 2005.

Chief executive Jean-Louis Raymond said that the financial structure of the group remained "fragile and the high financial charges continue to impact on operating results".


Related UK National News Stories
Click here for the latest headlines.

05 August 2003
Plan to recycle more junk mail unveiled
The amount of junk mail sent to British homes is set to be reduced following an agreement today between the government and the direct mail industry. The agreement – arrived at after many months of negotiation – will see the amount of junk mail that is recycled.
20 August 2015
Joint British And French Command Centre To Be Set Up In Calais
A joint British and French command centre is to be established in Calais in an effort to tackle the ongoing migrant crisis. A senior British and French police officer will lead the centre, with each reporting to their own government.
21 August 2006
Eurotunnel services suspended following smoke alert
The Channel Tunnel has been closed and Eurotunnel services suspended after a smoke alarm was set off. According to reports, the alarm was triggered around 12:30pm British time. Smoke was also reportedly seen coming from a train. It was reported that more than 30 people were onboard the freight shuttle and they were all evacuated safely.
12 April 2006
Eurotunnel warns over debt pile
Eurotunnel, the group which runs the Channel Tunnel, has warned that its future is in doubt due to its mountain of debt. Eurotunnel, which has debts of £6.3 billion, has requested the opening of a new waiver period for negotiations with its creditors. The new waiver period would run until July 12, with a review planned in mid-May 2006.
09 May 2012
Sainsbury's Reports A 'Good Year'
In what has been described as a ‘good year’ supermarket group Sainsbury's has reported an increase in sales and market share but a small dip in profits.