FERRY operator P&O says it is having its “best year in five” on its Irish Sea services, and more than 50 per cent of passenger volumes from its scrapped Troon to Larne route have been retained on its crossing from Cairnryan.

The company is also investing £500,000 in the two ships serving the route between Scotland and Northern Ireland in a bid to ensure the service is “modern and appropriate”.

P&O is currently in the second stage of a three-stage plan to improve facilities on the European Highlander and European Causeway ferries that sail from Cairnryan to Larne.

In January this year, P&O – which is owned by the Dubai World corporation – scrapped its loss making Troon to Larne service, but Neal Mernock, sector director for the Irish Sea, said the company had retained more than 50 per cent of all last year’s Troon customers, who are now using the Cairnryan service into Larne.

“From our perspective, we’re having our best year in five and that’s improving all the time,” said Mr Mernock. “What we have to do is be sure we offer the right service and that customers enjoy ferry travel.”

Freight traffic on the Cairnryan to Larne route is up four per cent, said Mr Mernock, and tourist numbers are plus two per cent.

“What’s interesting is that there is a future, a market there,” he said. “It’s a big market and there’s plenty of scope; there’s a lot of confidence out there.”

Both P&O vessels sail seven times a day, with a capacity of 400 passengers. This compares to Stena Line, which offers five sailings a day, but from Cairnryan directly into Belfast.

To help differentiate itself from Stena Line, P&O upgraded its kids play areas and shops ahead of the summer season, along with the forward lounge area on European Highlander. In addition, new seating has been installed on the top deck to make it more appealing on warmer days.

A second phase will be completed by the end of year, involving the redesign of reception areas with the addition of 20 more seats.

The biggest upgrade will be carried out in May 2017 when the ships are in dry docks for maintenance. “Next spring all the food courts will be modernised to be more like the high street, like what you’d find in a coffee shop,” said Mr Mernock.

These upgrades follow a £12 million investment in a modernisation programme at the Cairnryan port – which P&O owns – ahead of the closure of the Troon to Larne route.

Mr Mernock said more people were returning to ferries because of the additional logistics of travelling by air.

“There was an era when everyone was flying, but there’s almost a rebound going on because airline travel is not straightforward, with the security, luggage, liquid limits. Ferry travel is just a very convenient way of getting to Northern Ireland.”

While convenient, tight margins mean operations have to be slick in order to ensure profitability. And with the Troon route losing “significant millions of pounds a year” the decision was made to close it.

“We did things last year, reduced sailings, became more efficient, reduced losses, but it was still millions, so we made the sad decision to close it,” said Mr Mernock, who joined P&O in 2013 after spells with United Biscuits and Silentnight, where he was chief executive.

“This year’s objective was to convert Troon passengers to Cairnryan and travel with us, or Stena. There was a concern that some people would drop out of the ferry market and fly instead but that’s not happened,” he said.

The Irish Sea business, which includes the Liverpool to Dublin route, brings in revenue of about £40m.