Red Funnel is the trading name of the well established Southampton, Isle of Wight and South of England Royal Mail Steam Packet Co Ltd, the original ferry operator from the UK mainland to the Isle of Wight. 

Red Funnel had been owned since 2017 by a consortium of pension funds from the UK and Canada, including the UK’s West Midlands Pension Fund and Canada’s Workplace Safety & Insurance Board of Ontario. If Red Funnel did not meet the 30 September deadline it could have required a demand for repayment from its lenders, for which the ferry operator “would have insufficient cash or available finance”, latest Red Funnel accounts state. 

Red Funnel confirmed on 29 September that it had been acquired by Njord Partners. No  financial details on the deals have yet been released.

Red Funnel said that it had faced financial challenges over the last five years and yesterday’s “milestone transaction creates a strong foundation for enhancing the service and delivering an outstanding experience for Red Funnel passengers.”

Red Funnel went on to say that “significant indebtedness “ has previously severely limited the company’s ability to invest.

Commenting on the take over, Fran Collins, CEO of Red Funnel said: Their (Njord Partners) milestone commitment gives us the confidence and platform to our ambitious future plans.”

However, Red Funnel has yet to announced what is the basis of its ambitious future plans.

Jakob Kjellberg, Founding Partner of Njord Partners said: “We are excited to support Red Funnel’s next chapter, restoring its financial health and empowering its people to deliver the reliable, efficient service that islanders and visitors deserve.”

Quite where this situation leaves Vectis Ferries and its plans is uncertain.

Vectis Ferries was established in May this year by a group of former Red Funnel directors and the founder of East Cowes-based shipbuilder Wight Shipyard.

The newcomer said that if it didn’t succeed in it take over of Red Funnel it has “credible options” to launch a competing cross-Solent ferry service of its own!

Vectis Ferries was formed by Patrick Seely, a former non-executive director of  Red Funnel and Peter Morton, the founder and non-executive director of Wight Shipyard. They are supported by Red Funnel’s former CEO and chairman Kevin George, and former Chief Financial Officer Graham Barnetson, as well as shipping industry consultant James Walton.

The new cross-Solent ferry operator has said that it is ready to commit to investing more than GBP 100 million in next generation ferries and new shoreside facilities, providing the “stability needed to deliver a modern, reliable service for decades to come.”

Proposals  include building of new all aluminium passenger/vehicle ferries for the Southampton-East Cowes route, reducing crossing times  and creating skilled jobs at Wight Shipyard.

Red Funnel currently operates an aging fleet of three passenger/vehicle ferries from Southampton to East Cowes, all built in 1994 and 1996 and 2019-built freight RED KESTREL, and a fleet of two high-speed passenger-only ferries from Southampton to West Cowes, built in 2016 and 2018.

Red Funnel also has plans to introduce a 150-passenger capacity Artemis eFoiler hydrofoil at the end of 2025.

However, although the first ferry operator to the Isle of Wight from the UK mainland, Red Funnel does face competition from Wightlink with its services to the island from Portsmouth and Lymington, along with Hovertravel’s passenger-only hovercraft service from Southsea.

© Shippax