Shipping group P&O plans to close three cross-Channel ferry routes as part of a major overhaul of its North Sea operations, it announced today.

The company is buying out Dutch partner Stena Line's 40 per cent share of their four-year-old P&O Stena Line joint venture for £150 million.

It plans to shut the Dover-Zeebrugge route operated by the venture before the end of the year.

The two routes run by its P&O North Sea Ferries arm from the Suffolk port of Felixstowe to Zeebrugge and Rotterdam, were also set to close.

P&O said the decision reflected the inability of the routes "to achieve an adequate return, despite the best efforts of management".

A spokesman said P&O would minimise the impact on jobs, but there were likely to be cuts among the group's 50-strong workforce in Felixstowe.

He said "quite a number" of staff working on the Dover-Zeebrugge route could also be affected.