UK Settles Eurotunnel Dispute, Agrees to Terminal Upgrades Amid P&O's Legal Challenge
The UK's Department for Transport (DfT) has reached a settlement with Eurotunnel, agreeing to improve its terminal as part of the deal. This comes amidst legal action taken by ferry firm P&O against the government, arguing that the settlement puts its business at a competitive disadvantage.
The DfT awarded contracts worth over £100m to three firms, including Eurotunnel, for no-deal Brexit ferry services. However, Seaborne Freight, one of the awarded companies, had never run a ferry service before, raising eyebrows in the industry. Eurotunnel, which had previously operated cross-channel ferry services, sued the DfT, claiming it had not been considered for a contract despite its experience.
The DfT settled Eurotunnel's claim out of court for £33m, with the money earmarked for infrastructure upgrades. P&O, another ferry firm, argues that this settlement gives Eurotunnel an unfair advantage. P&O is taking legal action against the UK government, claiming that Eurotunnel was unlawfully handed £33m of taxpayers' money. The DfT later canceled its contract with Seaborne Freight in February.
The DfT's settlement with Eurotunnel has sparked controversy, with P&O alleging unfair competition. The £33m will be used to improve Eurotunnel's terminal, potentially enhancing its services. The legal battle between P&O and the UK government continues.
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