Transport Secretary settles Eurotunnel procurement claim for reported £33m

The Secretary of State for Transport has settled for a reported £33m the procurement challenge brought by Eurotunnel over the award of contracts for the provision of additional freight capacity.

Eurotunnel has also been awarded a further contract to implement measures improving security and traffic flow at the border, Brick Court Chambers has reported.

The Department for Transport had awarded the contracts to Brittany Ferries, DFDS and – most controversially – Seaborne Freight, which had no ferries at the time.

The minister had sought to use the extreme urgency provisions in regulation 32(2)(c) of the Public Contracts Regulations 2015 to carry out the procurement. The contracts are said to be for medicines and other high priority goods.

After Eurotunnel brought legal proceedings, the Secretary of State claimed the company did not have standing. The minister also reportedly denied all the claims.

Mr Justice Stuart-Smith had been due to hear the claim in the Technology and Construction Court from 1-6 March. Brittany Ferries and DFDS had been given leave to intervene.

According to a report on the BBC, Grayling said in a statement: "While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world."

Daniel Beard QC, Valentina Sloane, Ligia Osepciu and Jack Williams of Monckton Chambers acted for Eurotunnel.

Philip Moser QC, Ewan West and Azeem Suterwalla of Monckton Chambers acted for the Secretary of State.

Marie Demetriou QC and Hugo Leith of Brick Court, instructed by Latham & Watkins LLP,  acted for Brittany Ferries.

Aidan Robertson QC, also of Brick Court and instructed by HFW, acted for DFDS.