Irish Ferries is so confident about the future it's splashing out €144m on a new boat

IRISH FERRIES’ PARENT company will spend €144 million on a new cruise ferry to carry out runs between Dublin and Wales, as well as trips to France.

Irish Continental Group said it had entered into an agreement with German shipbuilder FSG to deliver a new vessel capable of holding 1,885 passengers and crew, 165 freight vehicles and another 300 passenger cars.

The ferry is expected to be delivered in May 2018, in time for the company to put it into service for the peak summer season.

The ship will have the scope to service all Irish Ferries routes, while providing a “premium experience” for the transport company’s customers. It will include a dedicated lounge with private access for “club class” passengers.

The company said it was expected the new ferry would start on routes currently served by the chartered MV Epsilon, adding extra capacity on the Dublin to Holyhead and Ireland to France journeys.

The Irish Continental Group will pay 20% of the purchase fee while the ship is being built and the remainder when it’s completed. The company will fund the deal with cash and existing loan options.

The MV Epsilon in Dublin's docklands

Confidence

Irish Continental Group CEO Eamonn Rothwell said the deal “underpins the confidence (we have) in both the freight and passenger tourism markets between Ireland, Britain and France”.

Total overseas trips to Ireland increased more than 13% last year, compared to 2014, according to figures from the CSO.

Meanwhile, revenue at the company was up more than 10% as it rode the wave of improved tourism and trade in Ireland.

Passenger numbers were up 2% during the year, while car trade was up 5%. But the star performer was in the firm’s freight business, which grew 6% in roll-on, roll-off traffic.

In a briefing note this morning, Goodbody analyst Jack Diskin said the new ferry would give the company scope to park its HSC Jonathan Swift fast ferry during the slow season and to replace the chartered MV Epsilon.

He said it would also give the company the ability to expand its shipping volumes beyond 2020, when it was expected current capacity would be tested.