HOVERSPEED boss James Sherwood has forecast that cross-Channel newcomer SpeedFerries will not survive for very long.

Even though the Dover-Boulogne operator has invested in a second high-speed craft for next year, Mr Sherwood, president of Sea Containers, the owner of Hoverspeed, does not rate its long-term prospects.

However, he admitted SpeedFerries had taken business from Hoverspeed, but claimed it had done more damage to P&O.

He said: "If you look at the numbers, it would appear that the impact has been mostly on P&O. I suspect we have lost some as well."

Hoverspeed had axed its services to Boulogne because the route was unprofitable, he said. "I wouldn't expect them to be around very long," he said.

On Hoverspeed's continued commitment to Dover, Mr Sherwood said the service was making a cash surplus and while that continued, the operator would stay.

He was convinced there was a future for Hoverspeed on the short-sea route, but it was assessed on an annual basis. "We are committed to it year by year," he said.

The operator is reducing its short-sea fleet of fast craft from three to two next year to cut operating costs. Capacity will remain much the same.

He said Hoverspeed was ahead of the game by already going through the "painful process" that P&O and Eurotunnel now faced - reducing staff, maximising summer returns and reducing winter times.