The story
1960s–1989
P&O originally established ferry services in the late 1960s in the North Sea between Hull and Rotterdam and the English Channel between Southampton and Le Havre.
In the late 1970s P&O was affected by a reduction in traditional shipping activities which saw the sale of a number of its businesses and assets. This continued into 1985 with the sale of its cross-channel ferry activities to European Ferries, which at the time consisted of services on the Dover–Boulogne and Portsmouth–Le Havre routes the latter having transferred from Southampton in December 1984.
In January the following year, P&O purchased a 50.01% interest in European Financial Holdings Ltd, which held 20.8% of shares in European Ferries, followed in 1987 with the purchase of the remaining shares of the European Ferries Group whose ferry services were trading as Townsend Thoresen. Following the Herald of Free Enterprise disaster in March 1987, the operations of Townsend Thoresen were renamed P&O European Ferries on 22 October 1987, with operations from Portsmouth, Felixstowe and Dover.
1990–2019
Following a consultation with the Competition Commission beginning 28 November 1996, P&O European Ferries split into three separate subsidiaries: P&O Portsmouth, P&O North Sea and the creation of a joint venture between P&O and the Swedish ferry company Stena Line's UK subsidiary Stena Line (UK) Ltd to create P&O Stena Line in Dover.
In April 2002, P&O announced its intention to purchase Stena Line's 40% share of the joint venture. The purchase was completed by August, and in October 2002 the Portsmouth and North Sea operations were merged with the Dover operations to create P&O Ferries Ltd, jointly managing all services from its head office, Channel House in Dover.
In September 2004, P&O Ferries Ltd conducted a business review that concluded with the announcement of closure of several of its long-term Portsmouth-based routes, leaving only the Portsmouth – Bilbao route in operation. These closures were predominantly blamed on the expansion of low-cost airlines and the increasing usage of the Channel Tunnel as a faster alternative to ferry operations.
In 2006, the P&O Group, including P&O Ferries was sold to Dubai-based DP World. Shortly afterwards it was taken over by Dubai World.
On 15 January 2010, P&O Ferries announced that it would be closing the Portsmouth–Bilbao route by the end of September to coincide with the end of its existing charter for Pride of Bilbao. This meant the closure of the final route served by P&O Ferries in Portsmouth.
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In January 2019, P&O Ferries announced that its UK fleet would be reflagged from Dover, UK to Limassol, Cyprus in response to the United Kingdom's exit from the European Union in 2019 "For operational and accounting reasons". Cyprus is a member of the EU and a flag of convenience, with the reflagging allowing P&O to continue to benefit from EU tax arrangements. According to the Rail, Maritime and Transport union, the reflagging was "pure opportunism", saying that the firm's "long-term aim has always been to switch the UK fleet to a tax haven register".
On 20 February 2019, DP World announced it had repurchased P&O Ferries from Dubai World in a £322 million deal.
2022 staff sacking
On 17 March 2022, P&O abruptly suspended its operations, cancelling all sailings and offloading passengers and cargo. Eight hundred UK staff were told in a video call that their employment was "terminated with immediate effect due to redundancy", and that their work would in future be undertaken by staff contracted to a third-party supplier. Staff on some ferries refused to leave their vessels. A spokesman for the National Union of Rail, Maritime and Transport Workers said that there had been no consultation with the staff or trade unions. The chair of the Transport Select Committee, Huw Merriman MP, criticised P&O. In the light of this action by P&O Ferries, the UK government stated it would review its contracts with the company. This resulted in calls to boycott P&O Ferries including by members of the public, businesses in the travel trade and politicians.
The method of the expulsion, overseen by ex-military security guards, was criticised by several government and business leaders. Mark Russell, a non-executive director of DP World, resigned afterwards in disagreement with the way in which the restructuring was carried out. P&O Ferries had seen losses during the COVID-19 pandemic as well as deficits in its pension fund. Industry sources also cited its high overheads and competition from Irish Ferries as potential contributory factors. Verity Slater, partner and expert in maritime employment law at Stephens Scown, said that P&O may not have to follow UK employment laws, since some of its ships are not registered in Britain.
On 24 March 2022, P&O Ferries CEO Peter Hebblethwaite confirmed before the Transport Select Committee of MPs that the management of the company acted unlawfully when it fired the crew members without consultation. Grant Shapps said that P&O Ferries should change the names of Spirit of Britain, Pride of Hull, Pride of Kent and Pride of Canterbury to remove all British references, were it found that P&O had broken the law. Shapps confirmed that the ships concerned would only be able to operate following full training and subsequent inspection by the Maritime and Coastguard Agency.
In March 2022, Shapps wrote to Hebblethwaite to give him "one final opportunity" to reinstate the 800 workers. Hebblethwaite declined to do so and confirmed his intention to remain in the CEO post despite two of the company's ships being impounded on safety grounds.
The controversy also caused P&O Cruises, another company originally owned by P&O but which was divested in 2000 and acquired by Carnival Corporation & plc in 2003, to suffer public backlash and to embark on an advertising campaign to clarify their separate ownership from P&O Ferries.
On 25 April 2022, it was reported that P&O Ferries was forced to reverse its attempt at pay cuts for the new workers. National Union of Rail, Maritime and Transport Workers, also known as RMT Union, received reports of seafarers being asked to sign new contracts with reduced payment. The union reported the company to the Maritime and Coastguard Agency, which made sure that the wages were not reduced. In November 2024, The Guardian reported that P&O Ferries' actions in 2022 cost the business £47 million.
Other brands
Over the years P&O Ferries operated various subsidiary ferry companies, each with their own distinctive name, these included:
Pandoro Ltd and Ferrymasters Ltd
P&O Irish Sea
P&O European Ferries
P&O Portsmouth
P&O North Sea Ferries
P&O Stena Line (joint venture).
P&O Portsmouth was formed in 1999 when P&O European Ferries Portsmouth Operations were named after the merger of the Dover Operations with Stena Line to make P&O Stena Line, when in 2002 P&O bought Stena's 20% share in P&O Stena Line so the North Sea Operations and the Portsmouth operations were merged with the Dover Operations to make P&O Ferries.
From Wikipedia’s article on P&O Ferries, shared under CC BY-SA 4.0.4