SeaFrance went into liquidation in January

by business editor Trevor Sturgess

Ferry wars are set to hot up if Eurotunnel succeeds in buying three ships previously operated by SeaFrance.

Around 500 jobs - mainly in France, but probably a good number in Kent - could be created if a formal bid is accepted.

It would give Eurotunnel - already a dominant player - and even greater share of the Dover-Calais market.

A final decision will depend on administrators of SeaFrance, which went into liquidation in January.

The Channel Tunnel operator has so far only expressed interest, but a formal bid would involve leasing the ships to a specialist ferry company.

The new French-flagged service, which would battle with P&O and the new DFDS/LD Lines on surface route, would be "complementary" to Eurotunnel's sub-sea offering.

Prices would probably be cheaper than the tunnel, which charges a premium for speed.

It would enable Eurotunnel to more easily switch passengers to a ferry when the tunnel is closed or reaches peak capacity.

Eurotunnel says it would also carry unusual and oversized loads and hazardous freight that cannot use the tunnel, as well as food and other goods that are not time-sensitive.

Jacques Gounon, Eurotunnel group chairman and chief executive, said: "We see that there's definitely a complementary role for a niche ferry operation."

A spokesman added: "We don't want to be part of a big shipping company but we don't mind owning transport assets and leasing them to someone else to manage."

Eurotunnel's earlier bid for the ships as a way of saving SeaFrance's 800 jobs was rejected.

Meanwhile, Eurotunnel announced it is to speed up passenger shuttles from 90mph to 100mph during the Olympic Games, cutting journey times from 35 to 30 minutes.

The move is designed to boost capacity to meet growing demand.