THE COMMERCIAL & TECHNICAL EVOLUTION OF THE FERRY INDUSTRY 1948-1987 By William (Bill) Moses M.B.E. A thesis presented to the University of Greenwich in fulfilment of the thesis requirement for the degree of Doctor of Philosophy October 2010 DECLARATION “I certify that this work has not been accepted in substance for any degree, and is not concurrently being submitted for any degree other than that of Doctor of Philosophy being studied at the University of Greenwich. I also declare that this work is the result of my own investigations except where otherwise identified by references and that I have not plagiarised another’s work”. ……………………………………………. William Trevor Moses Date: ………………………………. ……………………………………………… Professor Sarah Palmer Date: ………………………………. ……………………………………………… Professor Alastair Couper Date:……………………………. ii Acknowledgements There are a number of individuals that I am indebted to for their support and encouragement, but before mentioning some by name I would like to acknowledge and indeed dedicate this thesis to my late Mother and Father. Coming from a seafaring tradition it was perhaps no wonder that I would follow but not without hardship on the part of my parents as they struggled to raise the necessary funds for my books and officer cadet uniform. Their confidence and encouragement has since allowed me to achieve a great deal and I am only saddened by the fact that they are not here to share this latest and arguably most prestigious attainment. It is also appropriate to mention the ferry industry, made up on an intrepid band of individuals that I have been proud and privileged to work alongside for as many decades as covered by this thesis. As depicted herein, the industry itself has rarely been without challenge, a state of affairs that continues to this day, and indeed would seem destined to never change. Nonetheless as an island nation we surely owe a debt of gratitude to those who populate our coastline with what are in effect lifeline ferry services and without which the country, its tourism and trade would surely grind to a halt. To my family and friends who have had to contend with a great deal during the tenure of this thesis ranging from a house full of books, and paper miscellany to mood swings, particularly when the research was proving difficult. To them all, my thanks and apologies in equal measure. To the Greenwich campus, a remarkable piece of history that it has been a pleasure to be associated with and without which I am confident in my own mind that I could not have achieved this thesis. Last but by no means least, a special thank you to my supervisors, Professor Sarah Palmer and Professor Alastair Couper who have successfully piloted me through uncharted waters that I had no idea existed. Their patience and perseverance deserves special mention. iii The acknowledgements mentioned here summarise the industry, environment and individuals that have contributed either knowingly or otherwise, directly or indirectly to this thesis. In truth I could not have achieved this work without every one of these valuable components. The words I have used here seem altogether brief and largely inadequate to illustrate the relevance and esteem, nevertheless they are all I have at my disposal and are heartfelt. Bill Moses iv Abstract The thesis sets out the political, economic and social forces and the parallel institutional and technical factors that shaped the development of the ferry sector between 1948 and 1987. It provides as full an account as the available record permits of an important shipping industry sector that previously has received little serious historical consideration. Most of the ferry industry, dominated by its railway industry parent and ravaged by war losses, came into public ownership in 1948 as a consequence of railway nationalisation followed by a decade of under-investment. The period ended with a loss of supremacy for the railway-owned shipping sector, privatisation, increased competition, the 1987 Herald of Free Enterprise disaster – in no small part exacerbated by the drive through vehicle deck which had done so much to facilitate the ease of passenger car and freight movement - and the certainty of the Channel Tunnel, which spelt the end of sea transport primacy on its most important routes. The era saw ferries transformed in terms of design and capability from being largely tied to rail-connected passenger traffic, there came the innovation of roll-on , roll-off and the hovercraft, with ports undergoing change scarcely less extensive. The thesis examines the basic structural changes that affected the industry, specifically the process that resulted in the establishment of privately-owned firms in situ , the bureaucratic problems that beset British Railways and which hampered its formulation of a coherent response to the varied challenges it faced in the Fifties and Sixties. It shows how the growth in private motor car ownership proved a catalyst for change in a conservative industry and explores the way in which the introduction of newcomers and the hovercraft drove the development of competition, transforming the ferry business but ultimately leading to the government decision to construct a fixed link between the United Kingdom and France. The thesis concludes that the drive and entrepreneurial flair of three private ferry operators, Townsend, Bustard and Thoresen, was largely responsible for the v transformation of the industry and argues that the new and growing market created by motor transport would not have been exploited at such a rate or with the same degree of forethought and innovation without their involvement. vi Contents Declaration ii Acknowledgements iii Abstract v Table of Contents vii List of Tables ix List of Figures xi Chapter 1 Introduction 1 1.1 Literature Review 2 1.1.1 Primary Sources 2 1.1.2 Secondary Sources 3 1.2 Development of the Ferry Industry 9 Post-War Conditions followed by Economic Growth and Rising Standards 1.3 10 of Living 1.4 Major Developments and their Impact on the Ferry Industry 14 1.5 Summary 16 1.5.1 The Commercial Context 16 1.5.2 The Technical Context 17 1.6 Outline of the Thesis 18 Chapter 2 The British Economy and a Period of Transition 1948-1950 22 2.1 Introduction 22 2.2 Summary 46 The Mapping of United Kingdom Dominated Ferry Services 47 Chapter 3 Operating in 1950 3.1 Introduction 47 3.2 Ferry Services provided by British Railways 50 Ferry Services provided by Private Operators and those controlled by 3.3 63 Foreign Railway Companies 3.4 British Railways: Financial Performance and Competitive Landscape 79 3.5 Technological Development 88 3.6 Summary 107 Chapter 4 Rail, Government and New Entrants 1951-1961 108 4.1 Introduction 108 4.2 The Competitive Market and Infrastructure 111 4.3 Fleet Disposition 116 4.4 Townsend Brothers Ferries 118 4.5 Atlantic Steam Navigation Company Limited 120 vii 4.6 RoRo Development on the Irish Sea 125 4.7 British Railways Traffic Growth and Financial Returns 127 4.8 British Railways Fleet Replacement Programme and its Justification 131 Chapter 5 The Growing Success of the Car Ferry Concept 1962-1972 143 5.1 Introduction 143 5.2 The Ferry Sector 144 5.3 The Changing Market 146 5.4 The Developing Cross Channel Market 148 5.5 Townsend Expansion 154 5.6 The Irish Sea Sector 155 5.7 Thoresen and the Western Channel 161 5.8 North Sea Advancement 166 5.9 The Atlantic Steam Navigation Company 169 5.1 Fleet Disposition, Capacity Issues and the Advance of RoRo 175 5.11 The Advancing Channel Tunnel Debate 187 5.12 The Economy and Development of a Discerning Market 191 5.13 Summary 199 Economic Change, Innovation, Growth and Acquisition, Disaster and Chapter 6 200 a Fixed Link 1973-1987 6.1 Introduction 200 6.2 Political Developments 200 6.3 The Hovercraft 203 6.4 Services in the Irish Sea Sector 209 6.5 Services in the Channel Sector 215 6.6 Innovation, Growth and Acquisition 216 6.7 Denationalisation of Atlantic Steam Navigation 216 6.8 Acquisition and Competitive Advantage 217 6.9 Spiralling Inflation, New Market Entrants and Sealink 218 Influence of Private Car Ownership on Ferry Design: Promise and 6.1 224 Problems 6.11 Short-Term Profit 225 6.12 Public Facilities and Public Attitudes 226 6.13 Economic Decline 228 The Impact of International and Domestic Economic and Financial 6.14 229 Developments 6.14.1 The International Dimension 229 6.14.2 The Domestic Dimension 230 6.14.3 Financial Developments 233 6.15 Commercial Expansion 235 6.15.1 Mergers in the Industry 235 6.15.2 New Entrants 237 6.15.3 Sealink Denationalisation Process 239 6.15.4 Economic Challenge and Change in Management Style 242 6.16 Disaster 244 6.16.1 Loss of the Herald of Free Enterprise 244 viii 6.17 Summary 247 Chapter 7 Conclusion 248 Bibliography 253 Glossary of Terms 259 List of Tables 2.1 Routes by destination and operator 25 2.2 Operating Margins of BTC businesses 1948-1950 31 2.3 Services operated by British Railways 1950 34 2.4 Wartime vessel casualties 36 2.5 Average vessel age 37 2.6 Railway shipping receipts and expenditure 1937-1947 39 2.7 British Railways’ ship building programme and costs 41 2.8 Growth in Irish Sea passenger volumes air versus sea 43 British Railways: Traffic volume and financial performance by sector 3.1 48 (1950) 3.2 Associated Humber Lines 51 British Railways: Eastern Region, North Eastern Region and the Scottish 3.3 52 Region in 1950 3.4 North Sea carryings 1950 53 3.5 British Railways: Southern Region (SR) fleet in 1950 (west to east) 54 3.6 British Railways: Short Sea carryings 1950 55 3.7 British