Ports and ferries group P&O reported bumper business at its container terminals but said a downturn in tourism had continued into 2004.

P&O cut capacity on the key Dover-Calais route from eight to seven ships after passenger numbers slid further in the first three months of this year.

On-board services have also been changed on night sailings as the group targets £30 million of annual savings in its ferries division.

Passenger carrying in its ferry business was eight per cent lower and the number of cars and coaches dropped to 358,000 in the quarter from 388,000 a year ago.

But P&O said growth in volumes of containers in its ports business remained strong at 30 per cent.

Monday May 10, 2004