A popular Sussex ferry service needs 18 million euros to cover losses accumulated since it began operating three years ago.

The Seine-Maritime Department, the French regional authority which heads the Transmanche consortium, expects to cover the deficit from its own reserves.

Transmanche operations manager Steve Forest said the losses, about £12 million, had been made since the two-boat Newhaven to Dieppe service restarted in 2001.

Transmanche signed a contract for two new ferries yesterday, expected to reduce the crossing time from four to three-and-a-half hours.

Each of the vessels will be able carry up to 70 trucks and some 600 passengers.

Confidence in the route has been boosted after more than a million containers were shipped last year, the first time the figure has been passed. The amount of freight being carried between Newhaven and Dieppe increased by 59 per cent last year, while passenger numbers were up by 15 per cent.

Mr Forrest said the port itself, 80 per cent owned by Seine-Maritime, was expected to start breaking even later this year.

Reports of the losses have prompted Newhaven's MP Norman Baker to write to Didier Marie, Seine Maritime's chairman, asking for a meeting.

Mr Baker said: "It is good that business on the line is up. Clearly the French will not subsidise the line indefinitely, so we need to know their forward strategy. "

Results of an audit of the ferry route and port are expected in September.

Friday June 04, 2004