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The service to Egypt was quickly inaugurated in the same year by the 1,674 ton paddle steamer Oriental and by 1842 regular services to India were available which involved a difficult overland journey to Suez where a second ship was boarded for the voyage to Calcutta. By 1845 services had been extended to cover Italy, Greece, the Black Sea, Ceylon, Madras and China.

The company's success was not without its trials and tribulations. There were numerous lengthy and difficult negotiations to raise money for building newer and faster ships in order to see off the competitions. A network of port agencies and depots had to be established along the routes so that the ships could be administered and replenished. The first P&O liner to reach the east was the Hindostan, a purpose built ship with special engines. But, in those days, it wasn't just a question of fueling and storing in England, setting sail and eventually arriving in India after stopping en route to refuel and replenish, there were no established places to undertake these tasks. Sailing ships carrying coal had to be dispatched in advance to various locations on the route to await the steamer where it would then refuel. The sailing ships would also carry agents to these locations where they would arrange to purchase fresh water and provisions for the steamer. Such was the complexities of organising the first steamship routes.

However, these problems were minor compared with the management of the celebrated Overland Route across Egypt which seemed to give the company the biggest headaches. Now that the passage from the Mediterranean to the Red Sea is accomplished by means of a comfortable transit through the Suez Canal it is difficult to image what it would have been like in those early days. The transit involved a voyage in a stuffy canal boat from Alexandria to the river Nile, a second voyage in a bug infested steamer to Cairo then an 84 mile journey in a cramped horse-drawn coach to Suez. To make the overland journey as comfortable as possible for the passengers P&O had special river steamers built, deployed horse drawn carriages and established well-appointed rest-houses. Remember also, it was not only the passengers that had to be transported overland but their baggage and, of course, the mail. The mail, however, had priority because of penalty clauses in the contract and was transported more quickly by camel. There were obviously complaints from the passengers fearing that they would be delayed and miss their connection at Suez but, all in all, the operation was a success, so much so that, within a few years, Egypt saw a considerable influx of tourists from Europe. Fortunately, a rail link constructed during the 1850's eventually improved passenger comfort.

The Hindostan
Commenced sailings from Suez on
24th September1842 (P&O Lines)
The Great Liverpool
Purchased to inaugurate the Mediterranean service (P&O Lines)


The Overland route-1845
From Capt. James Barber's book
(P&O Lines)

The success of the overland venture opened the P&O management's eyes to the potential of travel for pleasure and quickly established links with the early Victorian leisure industry. In the year that Thomas Cook ran his first railway excursion, 1844, P&O invited a rising young novelist, William Makepeace Thackeray, to embark on an all expenses paid tour of the Mediterranean. This he did and visited Malta, Athens, Constantinople (Istanbul), Jerusalem and the Pyramids in Cairo. He was favourably impressed and published accounts of his travels, firstly in a popular magazine, and then in a travel book 'The Spanish Sketchbook: and from Cornhill to Cairo'. Thackeray made it very clear in the preface of his book that 'The Peninsular and Oriental Company had arranged an excursion in the Mediterranean by which, in the space of a couple of months, as many men and cities were to be seen as Ulysses surveyed and noted in ten years' and urged 'all persons who have time and the means to make a similar journey'. A wise investment by the management of P&O and one which sowed the seeds of a future 'cruising' industry.

The 1850's P&O progress rapidly but not without a certain degree of difficulty. A malevolent and searching Parliamentary enquiry was overcome with dignity but at the expense of time and effort. In 1852, a mail service between Suez and Bombay was established and also the Australian mail contract was acquired and, as it was already active in Singapore and Chinese ports, the company had become a powerful force in the Far East. Furthermore, taking advantage of the advance of shipbuilding technology, iron hulls and screw propellers, the fleet was more or less rebuilt or refitted.

The timing of the modernisation was fortuitous as it coincided with the outbreak of the Crimean War which raised the price of lumbering coal and, with it, freight rates and also the repeal of the Navigation Acts which reserved certain routes, mainly those to the colonies, for British shipowners. The repeal of the Act opened up trading routes to American clippers and the British monopoly of major sea routes was no more. However, by the turn of the decade the company was in calmer water but about to face probably the greatest crisis in its history.

 


The Lady Mary Wood
Inaugurated Far East run in 1845
Engraving by WA Delamotte (NMM)

The Nepaul 3,536 tons
Built in 1876
(P&O Lines)


Sir Thomas Sutherland
Chairman 1881-1915
(P&O Lines)

By the 1860's the company had invested heavily in the Egyptian operation. It had established and extensive and costly network of offices, hotels and warehouses to provide for the comfort of the passengers making the overland transit. In 1869 this was all made obsolete when the French engineer, Ferdinand de Lesseps, completed the Suez Canal, an achievement which many men said was impossible. P&O faced a major problem. Not only did the company have to compete with enthusiastic newcomers who could operate through the canal without the constraints of the mail contract but it had two large fleets, one for the northern European waters and one for the tropical waters of India and the Far East.

But P&O faced the challenge and survived. Under the skilful direction of Sir Thomas Sutherland the company recovered by making economies. Overheads were trimmed including the abolishment of the, hitherto, customary free drinks at meal times. Sutherland, who was formerly the manager in Hong Kong and went on to become Managing Director in 1872 and Chairman in 1881, built larger and faster ships which were more suitable for the through voyage. The United Kingdom terminus moved from Southampton to London.

P&O soon began operating through voyages to India, the Far East and Australia but there was still a minor problem with regard to the carriage of the mails. The contract stipulated that the mail had to be shipped to Alexandria, off loaded and carried overland to Suez where it was to be loaded onto a second ship for carriage to India. When the canal was opened this practice still continued. The mail was off loaded at Port Said, carried overland while the ship proceeded through the canal and then reloaded when the ship arrived in Suez. Typical Victorian bureaucracy which continued until the mid 1880's.

As the Suez Canal was effectively controlled by the Egyptians and the French who built it, the management of P&O were very concerned that their dominance of the shipping routes to India and the Far East could be undermined so they negotiated to purchase a share of the Suez Canal Company.

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