PORT officials in France have seized SpeedFerries Dover to Bolougne vessel in a dispute over unpaid port fees.

The Speed One carrier, which operates between the French port and Dover's Western Docks, has been immobilised in Bolougne and will remain under the port authorities control until the low-budget ferry firm arranges payment of the debt, thought to be outstanding for a "considerable length of time."

A statement issued by the Bolougne Chamber of Commerce, says: "Due to an important payment delay by SpeedFerries in relation to port dues, the shipbroker representing the account of the Boulogne Chamber of Commerce (the Port Authority) has previously obtained the agreement of the Commerce Tribunal, an order enabling the ship to be seized in lieu of outstanding payments being made.

"The General Management of SpeedFerries has been advised by the Chamber of Commerce of this order for some considerable time, but have taken no measures.

"Consequently the ship broker has taken the decision from yesterday evening (Thursday) to proceed with the seizure of the ship to guarantee outstanding payments.

"Speed One is immobilised in the Port of Boulogne until agreement is reached with SpeedFerries.

"The Boulogne Chamber of Commerce is open to all solutions to resolve this situation favorably and rapidly in order for the service to resume as soon as possible."

A ferry industry insider has told the Express the firm, owned and run by Danish businessman Curt Stavis, 47, of Copenhagen, has been struggling against rising costs.

They said: "He (Stavis) must be in the middle of a living nightmare. Running a fast ferry operation like that is a bottomless pit and you can't get out of it. He is in a situation where you are having to sell the tickets just to pay the bills today. It couldn't last.

"There is no money for expansion. People outside the cross-Channel business think it is easy pickings on the short sea sector, to come in and add to the 30 per cent over capacity and cream off the profits but they all find out that it's not that simple. The costs of running these operations are astronomical."

SpeedFerries boss Curt Stavis described the port authority actions as "totally unexpected," adding: "The authorities had given written confirmation that no legal steps would be taken prior to a meeting planned for 10am today (Friday). At this meeting SpeedFerries in consultation with its bankers and financial advisors, were to present a proposal for a resolution of the issues relating to outstanding dues and taxes, as well as disputes with the Port."

The firm says there are counterclaims against the French port and claims to be the victim of discrimination in regard to port dealings with LD Lines, which will set up a rival service next year.

Mr Stavis said: " SpeedFerries finds itself in a position where it is unable to inform its customers, employees or business partners, of a firm date for the resumption of services.

"The company deeply regrets this situation and asks everyone affected to accept our sincere apologies."