UK cancels no-deal Brexit 'ferry' contracts shadowed by controversies

The UK awarded the contract to a company called Seaborne Freight -- a London-based firm that only intends to start providing ferry services next year.

Britain's Department for Transport is cancelling its no-deal Brexit contracts with ferry companies, Sky News reported on Wednesday. The contracts have been cancelled as at a cost to the taxpayer and UK government will have to pay part of the full cost of the contracts they entered into.

The British government said last year it would spend more than 100 million pounds ($130.72 million) chartering extra sea ferries to ease cross-Channel congestion if the United Kingdom fails to secure a trade deal before leaving the European Union.

Britain's transport minister was also under fresh pressure to resign after the government stacked up a 50 million pound ($65 million) loss for cancelling contracts to charter extra ferries to bring in essential supplies in the event of a no-deal Brexit.

UK's no-deal Brexit contracts with ferry companies have been subjected to controversies earlier as well when London allegedly awarded an emergency ferry services contract to a company without any ships.

Then, the government was forced to pay a further 33 million pounds to settle a lawsuit brought by Eurotunnel, which complained that it was unfairly prevented from bidding on the ferry contracts, which were negotiated in secret. The botched handling of the contracts, led the transport minister Chris Grayling, to be nicknamed "failing Grayling" by local newspapers.

The UK awarded the contract to a company called Seaborne Freight -- a London-based firm that only intends to start providing ferry services next year.

UK government later terminated the contract Seaborne Freight after the decision to award the 14 million pound ($18.1 million) contract was heavily criticised by opposition politicians and others.

The government, however, said that the contract was terminated after Seaborne Freight's backer, Irish firm Arklow Shipping, decided to step back from the deal.

Transport Minister Chris Grayling had defended the decision to award the contract to Seaborne saying that, "I make no apologies for supporting new British business."