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Questions have been raised over the government's preparations for a no-deal Brexit after it emerged a £13.8 million contract to run extra ferries has been handed to a company which has no ships and has not previously operated a service.

Seaborne Freight was one of three companies awarded £108 million contracts last week to lay on additional crossings and ease the pressure on Dover.

The company aims to operate freight ferries from Ramsgate to the Belgian port of Ostend, beginning with two ships in late March and increasing to four by the end of the summer.

But a Conservative councillor for the Kent port town said he did not believe it would be possible to set up a new service from Ramsgate by the scheduled date of Brexit on March 29.

And Cllr Paul Messenger questioned whether the government had carried out sufficient checks on the firm, telling the BBC: "It has no ships and no trading history so how can due diligence be done?

"Why choose a company that never moved a single truck in their entire history and give them £14 million? I don't understand the logic of that."

Seaborne was established two years ago and has been in negotiations about running freight ferries between Ramsgate and Ostend, but no services are currently running.

Key Brexit moments of 2018: in pictures 23 show all Key Brexit moments of 2018: in pictures 1/23 Prime Minister Theresa May speaks during a Cabinet meeting at Chequers in July PA 2/23 The Cabinet thrashed out a Brexit blue print PA 3/23 The away day meeting PA 4/23 Boris Johnson leaves Carlton House Terrace in Westminster after he resigned as Foreign Secretary PA 5/23 David Davis pictured after quitting the government, resigning his post as Brexit Secretary AFP/Getty Images 6/23 New role: Jeremy Hunt was appointed as Foreign Secretary in July Getty Images 7/23 Dominic Raab took over the role of Brexit Secretary in July AP/Matt Dunham 8/23 Exotic spresm: Liberal Democrats Leader Sir Vince Cable following his speech at the party conference PA 9/23 More than half a million protesters descended on London for the People's Vote March in October Sky News 10/23 Demonstrators called for a People's Vote on Brexit during a march in Liverpool earlier this year Getty Images 11/23 Chancellor of the Exchequer, Philip Hammond, presented the red Budget Box as he revealed the government's financial plans in October Getty Images 12/23 It was the last Budget before Brexit AFP/Getty Images 13/23 Mr McDonnell and Jeremy Corbyn listen as Chancellor Philip Hammond delivers his Budget statement AFP/Getty Images 14/23 New Brexit Secretary Stephen Barclay after Dominic Raab quit the post in November Getty Images 15/23 Esther McVey also resigned as Work and Pensions Secretary 16/23 Sir Keir Starmer opened the debate on a motion to hold the Government in contempt of Parliament on December 4 AFP/Getty Images 17/23 Sir Graham Brady (centre), chairman of the 1922 Committee, announces that Theresa May has survived a confidence vote on December 12 PA 18/23 Theresa May in Downing Street after winning the confidence vote Jeremy Selwyn 19/23 The Prime Minister confronts Jean-Claude Juncker at an EU summit in December 20/23 'You called me nebulous' Philip Sime/Twitter 21/23 Jeremy Corbyn was accused of mouthing the words "stupid woman" during the last PMQs of the year 22/23 Jeremy Corbyn responds in the Commons amid the row PA 23/23 Jeremy Corbyn denied reports he muttered the words "stupid woman" AFP/Getty Images 1/23 Prime Minister Theresa May speaks during a Cabinet meeting at Chequers in July PA 2/23 The Cabinet thrashed out a Brexit blue print PA 3/23 The away day meeting PA 4/23 Boris Johnson leaves Carlton House Terrace in Westminster after he resigned as Foreign Secretary PA 5/23 David Davis pictured after quitting the government, resigning his post as Brexit Secretary AFP/Getty Images 6/23 New role: Jeremy Hunt was appointed as Foreign Secretary in July Getty Images 7/23 Dominic Raab took over the role of Brexit Secretary in July AP/Matt Dunham 8/23 Exotic spresm: Liberal Democrats Leader Sir Vince Cable following his speech at the party conference PA 9/23 More than half a million protesters descended on London for the People's Vote March in October Sky News 10/23 Demonstrators called for a People's Vote on Brexit during a march in Liverpool earlier this year Getty Images 11/23 Chancellor of the Exchequer, Philip Hammond, presented the red Budget Box as he revealed the government's financial plans in October Getty Images 12/23 It was the last Budget before Brexit AFP/Getty Images 13/23 Mr McDonnell and Jeremy Corbyn listen as Chancellor Philip Hammond delivers his Budget statement AFP/Getty Images 14/23 New Brexit Secretary Stephen Barclay after Dominic Raab quit the post in November Getty Images 15/23 Esther McVey also resigned as Work and Pensions Secretary 16/23 Sir Keir Starmer opened the debate on a motion to hold the Government in contempt of Parliament on December 4 AFP/Getty Images 17/23 Sir Graham Brady (centre), chairman of the 1922 Committee, announces that Theresa May has survived a confidence vote on December 12 PA 18/23 Theresa May in Downing Street after winning the confidence vote Jeremy Selwyn 19/23 The Prime Minister confronts Jean-Claude Juncker at an EU summit in December 20/23 'You called me nebulous' Philip Sime/Twitter 21/23 Jeremy Corbyn was accused of mouthing the words "stupid woman" during the last PMQs of the year 22/23 Jeremy Corbyn responds in the Commons amid the row PA 23/23 Jeremy Corbyn denied reports he muttered the words "stupid woman" AFP/Getty Images

In a statement, the company said it had been working since 2017 on plans to reintroduce ferry sailings from Ramsgate from early 2019.

The business has been "financed by the shareholders" during a development phase involving "locating suitable vessels, making arrangements with the ports of Ostend and Ramsgate, building the infrastructure - such as bunkering - as well as crewing the ferries once they start operating".

Liberal Democrat home affairs spokesman Sir Ed Davey said: "That the government has reportedly signed a contract with a ferry company with no ferries pretty much sums up their farcical approach to the entire Brexit fiasco."

And Labour MP Tonia Antoniazzi, a supporter of the Best for Britain campaign for a second referendum, said: "Never has it been clearer that our Government is selling us down the river over Brexit. A firm that has never run a ferry service before has been awarded a multi-million pound contract and they don't even have any ships."

"We know our ports aren't ready for a no-deal disaster, but is hiring a firm that's never dealt with this kind of thing before really going to help? This idea should have been sunk before it saw the light of day."

A Department for Transport spokesman said: "This contract was awarded in the full knowledge that Seaborne Freight is a new shipping provider, and that the extra capacity and vessels would be provided as part of its first services.

"As with all contracts, we carefully vetted the company's commercial, technical and financial position in detail before making the award."

Reporting by Press Association.