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Corran Ferry OBC (Method of Delivery Options
AS IS THC (Do minimum)
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Corran Ferry OBC
Method of Delivery Options
AS IS THC (Do minimum)
Transport Scotland (Lock Stock)
Private Operator (Market Testing)
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Private Operator - Ferry run as a not for profit
Highly unlikely with current fares and spare vessel requirement for refit and breakdown cover
No capital commitment
Market testing has proved this
Transport Scotland – Agree in principle to a transfer
Loose % of GAE - ‘no net detriment to SG
Lock - Stock
Fares solution will be found
Negotiation
Community cannot be disadvantaged by RET
TS evaluation of RET
Formula for short routes being looked at
New fares policy Scottish Ferries Plan (2022).
We need to create an exception to the RET rule
Multi journey ticket books retained?
NATIONAL ISSUE
Needs to be future proofed
Political Pressure - Lobbying
Lifeline Service
Socio Economic dependent
National importance.
Needs to part of the Scottish Ferries Plan (2022)
Strategic link - Network (Mull)
Dangerous goods - open deck
KEY ISSUES
Investment to stay afloat
Operating on a shoe string
No Capital programme
Shuttling
Need Larger Vessel 45-50 car
Need new slipways
Spare vessel required
Ongoing operational costs
Safety - Maritime regulations
Pressure to increase fares
Staffing issue (Borderline)
Need a 3 shift pattern
Working in isolation
No Economies of scale
One vessel (disproportionate)
Not a core service for THC
Direction of travel other LA's
Engineering-Refit Bute
THC not High Priority
In house engineering resource
No Back Office support
Ticketing, Mgmt, HR
2 New pursers has not helped due to the issue of shuttling
National Issue
Can't keep everything within the existing budget or reserves
Positives
250,000 cars per year
Most Reliable
Busiest single vessel route in Scotland
Low Risk -
No heavy subsidy required
Jewel in the Crown
Lifeline Service
Strategic link - Network (Mull)
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Council owned - 270,000 cars per year Busiest single vessel route in Scotland Runs 7 days a week every 30 minutes
06:00 - 22:00
0.4 miles 5 minutes crossing
Loch Linnhe 9 miles south FT William
(annual, 685,201 for all passengers (includes inside and/or outside of vehicles).
Operational, financial and other challenges threat to the future sustainability and viability of the service.
Vessel and Slipway Replacement
SWOT - We need a bigger boat! (Shuttling)
Larger RO RO vessel (500 tons - 40 cars?)
Refit/relief/second vessel secured elsewhere.
Fares
Discount £2.49
Non Discount £8.50
63% of sales over the past 5 years have been discounted providing only 34% of the average annual revenue
Calculate fares with RET?
Cheapest Ferry in Scotland
Finance
Washes its face 1.5 m
(Does not factor mgmt costs)
GAE No capital savings Not ring fenced
Running on a shoe string
Tendering 1.4 - 1.7 m
New Vessel / Slipways 40 m
THC cannot the afford capital expenditure for a replacement vessel or new slipways
THC MUST find a solution
The Community
Affordable fares - Major Concern
Socio-Economic case
Lack of ownership / responsibility
Ongoing engagement with the Project
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Fixed Link (Bridge) Long term
Being addressed in a separate study
TS STPR2 - does not form part of this work
Consider cost of a fixed link over a ferry option
OBC is looking at the next 20-30 years
RISKS
A delay in making a strategic decision to transfer the service to another operator will result in Service failure.
Crew at breaking point
Safety Concerns
Principle Issues
Who is funding capital and revenue requirements of the service?
Who owns the landside infrastructure?
Who provides the vessel(s) and how is relief cover provided?Who operates the service?
How are the fares set and what level should they be at?
CalMac
Contract for Provision of Ferry Services
2016-2024 - Clyde and Hebrides
CHFS bundle
CMAL currently owns 34 ferries.
31 operated by Calmac
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To Stay Afloat
Contingency
Interim Solution
5 year Medium term
Period of Transition
Planned and costed
Opertaional costs
depreciation charge
Mgmt costs
Swing Mooring
Birthing
Crewing Model
Tender Vessel
Saftey Concens
Ticketing
Additional Funding TS
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5 year Plan.
(Transition period 2020 - 2025)
3 - 5 years for vessel in Service
Maid of Glencoul (14 cars) 44 years (MV Corran (28 cars) 20 years