Eurotunnel sees rise in traffic

Eurotunnel said traffic increased during the first quarter of 2005

Channel Tunnel operator Eurotunnel has reported a rise in traffic after bringing in a fresh freight strategy.

The group said the number of lorries it carried in the first quarter of 2005 rose by 6%, compared with 2004.

A spokesman said car numbers rose by 4% in the same period after products for car services were improved.

The firm is currently waiting for approval of senior creditors to start debt restructuring talks. Eurotunnel is tackling a £6.2bn ($11.6bn) deficit.

Figures showed the number of lorries carried in the first quarter of 2005 was 345,570, while the number of cars was 438,804.

Eurotunnel said a new freight strategy had aimed to match supply more closely with demand.

Port disruption

And the product mix on car services had been changed to increase short breaks and long-stay activity.

The spokesman said volume improvements had been seen despite an erratic passenger car market due to the uncertainty of ferry services and disruptions at Calais, which saw ferry companies cutting prices.

And the firm said uncertainty at Channel ports saw coaches carried increasing by 49% to 17,629.

Shuttle revenue was up by 7% and railway revenues had risen by 1%. The first quarter revenue had increased by 2%, to £130.8m.

The firm is under pressure to agree a deal with the lenders before the end of this year when it has to start paying all the interest on its debt in cash instead of convertible bonds.

Rebel shareholders replaced Eurotunnel's Anglo-French board with an all-French team at the group's annual meeting in Paris last April.