Hundreds of SeaFrance jobs could be saved by a new Dover-Calais ferry service.

A French court yesterday placed SeaFrance in liquidation, effectively sinking 880 jobs, including more than 100 in Dover.

DFDS Seaways and LD Lines, whose earlier bid to take over the ailing French-owned operator, was ruled too low by the French court, says it still wants to run a new service.

In December, DFDS/LD said it would not be submitting a revised bid, blaming trade union intransigence.

But after the liquidation, it has renewed its interest in providing a French-owned competitor to P&O.

It says the intention would be to hire 300 redundant workers.

In a statement, the joint venture said it was in a unique position to create a number of sustainable French jobs, including the deployment of French flagged ships.

"We can, therefore, confirm that we have continued to pursue opportunities to establish a new route between Dover and Calais.

"Our intention is to operate two ships under the French flag to be manned with French seafarers.

"To open a new route, and provide an attractive service for customers, we aim to hire about 300 staff and expect to be able to start the recruitment process soon."

Meanwhile, Eurotunnel has offered to buy three SeaFrance ferries now tied up in the Port of Calais and lease them to a workers' co-operative.

The Leader of Dover District Council has expressed concern at news that SeaFrance is to shed 127 jobs in East Kent.

Cllr Paul Watkins, Leader of Dover District Council said he was very concerned at the impact of the decision and the effect it would have on local families.

He added: "We would love to see another operator come in to help provide employment opportunities for residents of East Kent made redundant as a result of the current situation.

"However, we remain concerned at reports that Eurotunnel has not ruled out a possible future bid, and we would be concerned if this were to progress given the possible impact this could have on services and fair prices in the cross channel market.

"We understand that SeaFrance has given reassurances that it is working with staff in East Kent to minimise the impact and is working to ensure that debts are met, and we continue to work with all partners for the future and to see how best we can be supportive of local employees and families."