Red Funnel - History

History

The origins of the Red Funnel line date back to 1820, when the Isle of Wight Royal Mail Steam Packet Company was established by Cowes interests to operate the first steamer service from there to Southampton. In 1826, the Isle of Wight Steam Packet Company was formed in Southampton, and by the following year the two companies had started co-ordinating their operations. In 1860, the Southampton, Isle of Wight & Portsmouth Improved Steamboat Company was created to compete with the two established operators, and the threat posed caused the two older companies to merge. They subsequently acquired the assets of the Improved Steamboat Company in 1865.

Formed in 1861, and originally called The Southampton, Isle of Wight and South of England Royal Mail Steam Packet Co. Limited, the merged company's name remains the longest for a registered company in the United Kingdom. The shortened name was adopted after 1935 when all vessels operated by the company adopted the black-topped red funnel in their livery.

The company originally operated a paddle steamer ferry service between Cowes, Isle of Wight and Southampton, England. During its history the company has operated other routes connecting the Isle of Wight and England, together with a sizeable excursion steamer business along the South Coast of England including day trips from the Isle of Wight to France, but today services are concentrated on two routes. In 1931 it introduced its first diesel ferry, the MV Medina. Ferries have steadily increased in size to the current Scottish-built Raptor class operated between East Cowes and Town Quay in Southampton. Between 1969 and the 1990, the company also ran Italian-built hydrofoils between Town Quay and Cowes. This route is now served by high-speed, passenger-only catamarans.

In 1867 Red Funnel instituted a service crossing the River Medina between East and West Cowes. This service was operated by a series of small launches over the years. The service ceased on the outbreak of war in 1939 when the vessels involved were requisitioned by the Admiralty. In 1868 the company took over the Cowes Floating Bridge Company and operated the floating bridge until 1901.

In 1885 the company bought the New Southampton Steam Towing Company and operated tugs and tenders under the subsidiary Red Funnel Towage. In 2002 Red Funnel Towage was sold to AdSteam, later passing to Svitzer Marine.

In 1946 Red Funnel acquired a controlling interest in Cosens & Co Ltd, a rival pleasure steamer operator based in Weymouth. This enabled the combined company to coordinate their excursions and also gave Red Funnel access to the Cosens' marine engineering and ship repair facilities. Excursions came to end in 1966 but the engineering side continued until sold off in 1990 to a management buy-out.

In 2001 the company was sold to JP Morgan Partners Inc. (now CCMP Capital) by Associated British Ports Holdings, which had acquired the company in 1989 as a white knight to fend off a hostile takeover by Sally Lines. In 2004 the company was sold again in a management buy-out backed by the Bank of Scotland for £60 million. On April 12, 2007, the owners of Red Funnel (who include HBOS) announced that they were considering selling Red Funnel. In June of the same year, the company was sold to the Prudential's infrastructure specialist, Infracapital, in a deal valuing the business at more than £200m.