Financial talks are taking place at SeaFrance this week after it was claimed the company is suffering huge losses.

Reports in the French media suggest that the company had reported losses of 20 million euro (£17.5m) in 2007 and this year’s losses are expected to be slightly more.

It is said that a plan to save the company could result in “a number of significant redundancies” and the withdrawal of some of the ships from the Dover-Calais fleet.

The crisis comes just weeks after SpeedFerries, which operated a fast-ferry service between Dover and Boulogne, went into administration with the loss of 100 jobs in Dover. Efforts to save the company failed.

Reports suggest that LD Lines, the ferry company planning to introduce services from Dover to Boulogne and Dieppe next year, could be interested in acquiring SeaFrance from its parent company, the state-owned SNCF.

Budget discussions

The newly-elected first secretary of the Communist Party in Calais, Bertrand Pericaud, said the unions were very concerned.

A spokeswoman for SeaFrance refused to confirm or deny the reports, but said budget discussions were taking place to consider what to do in the coming year.

“We have picked up some traffic from the problems at the Channel Tunnel and also from the demise of SpeedFerries,” said Ellie Philpott.

“But we are looking at the budgets and our plans for next year. We can not comment on any of the figures reported in the French media at the moment.”

The company’s board has already met to consider the situation, but it is a worrying time for the hundreds of people employed by the company on both sides of the Channel.

It has been a difficult year for all cross-Channel ferry companies faced with the economic crisis and increased fuel costs.

Gerard Barron, director of Communications with the Calais Chamber of Commerce and Industry, said the decline in freight traffic at the French port had been significant.

“Since August, cargo was down more than 10 per cent at the port and the tunnel,” he said.