Transforming a British icon: Peter Hebblethwaite

Legacy businesses play a unique role in the global business ecosystem. These long-standing firms have typically built up strong reputations and enjoy rich histories. But, as CEO of storied British shipping company P&O Ferries Peter Hebblethwaite knows firsthand, remaining relevant requires even famed businesses to push for innovation.

The impact of the COVID-19 pandemic in recent years, among other factors, had left the company in need of a turnaround. "At no other point in my career will I have the chance to transform and save an iconic business. That makes this job one of the most exciting things I’ve ever had the opportunity to do," Hebblethwaite tells The CEO Magazine.

Of course, modernizing such a valued business requires a careful balance. Hebblethwaite ensures progress is incremental, rather than a quick shift without a solid ground of support.

"True transformation doesn’t happen overnight. As much as you want to go faster, it takes time and it’s really hard. You must have a clear passion for it," he adds.

Employees, too, are central to the continuous reshaping of P&O Ferries to meet the challenges of today. Taking employees on the transformation journey sits at the heart of Hebblethwaite’s plans. He is supported in this endeavor by the owner of P&O Ferries, DP World, which fully understands the importance of going beyond simply delivering profit.

"You can’t get up on a soapbox and make a speech that suddenly changes the culture and instantly gets everybody on board. You must spend time with people to understand their fears and concerns and work through the changes together."

Unprecedented change

Coming from a fairly traditional corporate background, Hebblethwaite trained as an accountant and gained both consumer and commercial experience working in fast-moving consumer goods, retail and hospitality. This experience led him to identify huge untapped potential for the ferry market, which had not yet adapted following the 2008 financial crisis.

"There is a generation of people who have never considered ferry travel because they grew up in an era of low-cost airlines. However, an interest in sustainable travel and the cost-of-living crisis put us in the sweet spot to attract new, experiential generations of passengers," he says.

"The experience of going on a ferry is absolutely amazing. It’s more sustainable, it’s very good value for money. Everybody’s got a surfboard, a dog or a bike now and of course you can take all of that with you if you come with us."

Major changes have already taken place at P&O Ferries since the first phase of Hebblethwaite’s action plan started in 2022. Capacity has been matched far closer with demand, a total of US$106 million in cost savings have been made and around 150,000 metric tons of CO2 emissions have been removed from the carbon footprint.

The arrival of two state-of-the-art hybrid ferries, P&O Pioneer and P&O Liberté, marked a significant milestone in P&O Ferries’ transformation. These vessels, two of the world’s largest double-ended ferries, represent a US$305 billion investment in British infrastructure, have reduced the company’s carbon emissions on the English Channel by 40 percent and have given their passenger experience a serious upgrade.

Next, P&O Ferries is set to double down on what differentiates them from competitors by delivering a service that no-one else can offer. Its own network of major ports in the United Kingdom, alongside the unrivaled global footprint of its owner, DP World, means that P&O Ferries will become part of a truly end-to-end supply chain.

As the transformation journey continues, Hebblethwaite isn’t losing sight of the end goal and is driving forward his modernization agenda with a focus on innovation, growth and sustainability.

"There are many examples of legacy businesses who have failed to transform," he concludes. "We’re going to turn this business back into a British icon and, as part of the DP World family, into a global icon once more."