Eurotunnel 'winning environmental battle'

Published on Thursday 12 July 2007 00:30

EUROTUNNEL claims to have won the battle for environmentally conscious cross-Channel travellers after seeing passenger numbers rise to nearly a million since the start of the year.

The group, which last month sealed a 6 billion debt restructuring, said customers were turning their back on cross-Channel ferries and airlines because of concerns about carbon emissions. It carried 955,510 cars through the "Chunnel" in the six months to 30 June, up 8 per cent on a year ago.

A spokesman said that cross-Channel ferries typically emitted 20 to 30 times more than Eurotunnel's trains.

"People are starting to become more conscious of the impact of their carbon footprint and are looking for cleaner ways of travelling. We are definitely seeing a benefit from this. The electronically-powered trains we run are one of the most environmentally friendly options for getting to Europe."

A trading update from Eurotunnel added that the number of trucks using its service rose 9 per cent in the first half to 707,422. Total revenue rose 7 per cent to 252 million despite a 14 per cent drop-off in railway freight volumes.

Jacques Gounon, the chairman and chief executive, said: "Having succeeded in restructuring its finances, Eurotunnel has now completed its return to the Cross-Channel market with significant growth in its main traffic."

Under the financing deal, creditors have agreed to replace 6 billion of debt with a new 2.8bn facility. The creditors could end up seizing an 87 per cent stake in the business under a series of convertible bonds.