P&O and Stena propose to form a 50:50 joint venture to acquire P&O's port interests at Cairnryan and to finance the construction of new berths for both P&O and Stena and a new linkspan to serve P&O's operation. Stena Line's original plan to build a new port at Old House Point outside Stranraer is altered by these developments.

P&O proposes to sell Stena five vessels and port assets at Liverpool, Fleetwood and Dublin and to charter to Stena two other vessels. P&O also0 proposes to transfer to Stena the crew of the five vessels and relevant shore staff.

P&O will continue to own and operate the Port of Larne, which will be largely unaffected by these proposals. P&O will continue to operate five vessels on the Irish Sea, mostly out of Larne plus the Rosslare - Cherbourg route. For P&O the transaction is part of a wider restructuring of P&O Ferries to focus on higher yielding routes.

For Stena Line, the possible acquisition of the Liverpool - Dublin and Fleetwood - Larne operations would mean increased flexibility for customers. The new routes would complement Stena Line's existing services to the primary benefit of freight customers. Six routes across the Irish Sea would mean up to 25 departures a day and a doubling of Stena Line's freight capacity.

MJ INformation No: 18395