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Market Area Report for West Lancashire

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Market Area Report for West Lancashire RE-PRICING OF 12 MONTH MOORING PERMITS 2012 MARKET AREA REPORT FOR WEST LANCASHIRE Introduction This report provides the rationale for mooring price decisions for 2012. For explanation of the method and relevant policy, please see our overview report at www.britishwaterways.co.uk/media/documents/Moorings_Report_Overview_Report.pdf. Profiles of privately operated sites in the area are appended. We researched and compared their prices with the BW rates to inform our judgements but because the date is commercially sensitive this has not been included. Local market overview The Lancaster Canal has a fairly clearly defined market for moorings. It is the north-western extremity of the BW network from Preston to Tewitfield, running through the popular locations of Garstang, Lancaster and Carnforth. Although accessible to the rest of the network via the Ribble Link which is seasonal (April to October), the large majority of boaters do not use it and confine their cruising to the Lancaster. The moorings in Glasson Basin accommodate sea going craft and serve the coastal as well as inland boating market. The BW directly managed sites in the area are as follows Site name Site capacity (berths) Salwick Wharf 13 Stone Chimney Wharf 5 Pendle 24 Bilsborrow Wharf 11 Dimples Bridge 20 Tythe Barn Garstang 14 Moss Lane (South) 11 Moss Lane (North) 21 Montgomeries Wharf 6 Cabus Nook 8 Ratcliffe Wharf 11 Lodge Hill Galgate 4 Hest Bank 22 Bolton Le Sands 3 Tewitfield 3 Glasson Arm 9 Glasson Basin 1 Total capacity 186 West Lancs 2012 Page 1 of 6 Supply assessment In addition to these BW long term moorings, there are a total of 152 online and 768 offline basin or marina moorings in the same area; this includes the marinas at Barton Grange and Tewitfield. Thus the total market comprises around 1000 berths. As part of our online mooring reduction policy, we have closed 16 berths on our directly managed L1 sites. The attractive rural character of the area and its absence of locks still proves a strong draw for customers and demand for moorings on the Lancaster Canal remains high. Demand assessment Occupancy, measured by the number of permit holders divided by site capacity, currently averages 80% across BW sites in the group. Analysis of auctioned vacancies The table below summarises the results of auction sales up until August 2011. More recent results can be found on www.bwmooringvacancies.com. (the prices shown in this table include VAT at 20%) Total Guide Total Total Tenders Average contracted* £ Vacancies Site Name £ per Length Auctions > prevailing per metre following advertised to metre Sold guide price auction date Stone Chimney Wharf 82.69 Over 10m 7 3 1 72.50 Bilsborrow 95.59 Over 10m 6 3 1 78.36 Bilsborrow 95.59 10m and under 2 2 0 68.29 Dimples Bridge 76.25 Over 10m 9 4 1 65.86 Dimples Bridge 76.25 10m and under 5 5 1 54.68 Bolton Le Sands 80.55 10m and under 1 1 1 61.06 Tythe Barn 81.62 10m and under 2 2 0 60.35 Lodge Hill Galgate 79.48 10m and under 2 0 0 n/a Lodge Hill Galgate 79.48 Over 10m 8 1 0 54.36 Cabus Nook 69.82 Over 10m 5 0 0 n/a Ratcliffe Wharf 92.90 10m and under 3 1 1 107.33 Hest Bank 78.40 10m and under 11 5 2 70.10 Tewitfield 89.68 10m and under 1 1 1 95.00 Pendle 66.05 10m and under 10 7 0 48.10 Montgomeries Wharf 83.77 10m and under 4 2 1 83.67 Over 10m 3 2 0 58.28 Moss Lane ( North) 85.92 10m and under 2 2 1 63.90 Moss Lane ( North) 85.92 Over 10m 2 2 1 59.59 Moss Lane ( South) 92.90 Over 10m 5 2 0 67.26 Moss Lane ( South) 92.90 10m and under 1 1 0 69.86 Private operator reference sites We have identified the following privately operated mooring sites as being the most relevant to the BW sites for price comparison purposes Moons Bridge Ashton Basin Barton Grange Garstang Marina West Lancs 2012 Page 2 of 6 Bridgehouse Marina Tewitfield Marina BWML Galgate BWML Glasson Nu Way Acorn Brief profiles of BW and these privately operated sites are summarised in an appended table. Challenges to Pricing Decisions We have made the pricing recommendations below based on thorough market research. It is our policy, set at Board level, to set prices which reflect market supply and demand and to compete fairly with private operators. BW has neither powers nor duty to provide subsidised moorings. If you feel that the price decision made for your mooring site is unjustified having read this report, we ask that you write to the National Moorings Manager explaining why you think it is the case. Please explain the reasoning for your challenge including evidence such as price and descriptions of nearby privately operated mooring sites. We will not amend the price without this evidence. We will consider your representation and respond in writing within two working weeks. If you are not satisfied with the response, you may request that the matter is dealt with through our formal complaints procedure. West Lancs 2012 Page 3 of 6 Pricing conclusions The table below summarises our site-by-site conclusions across the area. Prices include VAT at 20%. 2011 Price from Site Name Notes on pricing decision Price April 2012 There have been two vacancies auctioned at this site which received no bids. Basic towpath site with no Salwick Wharf £75.18 £75.18 facilities only limited parking available. Price held. Small offside site which is currently full, with two recent vacancies selling through the auction process, one at above the guide. With 50% of auctions going above guide an increase would be expected but as a local marina Stone Chimney Wharf £82.69 £82.69 charges a similar fee with all of its facilities, there will be no increase to keep the pricing in-line with local private operators. A high number of vacancies have been sold through the auction process (7) although these have all been below Pendle Moorings £66.05 £66.05 the guide price. Facilities at this site including parking and water are provided by a third party who charges an annual fee on top of the mooring permit. Very popular site in the heart of Bilsborrow Village with facilities close by. Five vacancies have sold at this site, Bilsborrow Wharf £95.59 £97.50 one above the guide. A small increase of 2% keeps the pricing at a comparable level of a local private operator. Mooring site is located in the heart of Garstang with all its amenities. Turnover on site is above average on the Lancaster Canal and of the 9 vacancies sold, only 1 sold above the guide, all the others were around the reserve price but they all sold which indicates demand for the site. There is large variation in price charged by Dimples Bridge £76.25 £76.25 the local private operators in the Garstang area, and the price at this site already sits at the higher end of the range. An increase would price this mooring above this range and considering that the site does not have any other facilities, this could not be justified. Low turnover on site means that only two vacancies have been sold through the auction process and both of these were below guide. There is large variation in price charged by the local private operators in the Garstang Tythe Barn Garstang £81.62 £81.62 area, and the price at this site already sits at the higher end of the range. An increase would price this mooring above this range and considering that the site does not have any other facilities, could not be justified. Low turnover on site means that only three vacancies have been sold through the auction process, however a Moss Lane (South) £92.90 £92.90 couple of were advertised twice before they sold. There is large variation in price charged by the local private operators in the Garstang area, and the price at this site already sits at the higher end of the range. Price held. Moss Lane (North) £85.92 £85.92 In-line with its sister site, Moss Lane South which is in very close proximity. Four vacancies have sold through the auction process and only 1 at above guide. Hold price in-line with the Montgomeries Wharf £83.77 £83.77 mooring at Tythe Barn which is of a similar standard as both offside with no on-line facilities. Numerous vacancies have been advertised with no interest, so the price will remain at the same level as 2011. Cabus Nook (Houghton) £69.82 £69.82 Facilities at this site including road access, parking and water are provided by a third party who charges an annual fee on top of the mooring permit. West Lancs 2012 Page 4 of 6 2011 Price from Site Name Notes on pricing decision Price April 2012 Very Popular offside site with very low turnover. Only one vacancy has sold through the auction process and Ratcliffe Wharf £92.90 £93.83 this was at a slightly higher rate than the guide price. This site will be subject to a small increase, which keeps the mooring in line with other BW sites of a similar standard on the Lancaster Canal. Very little auction data so unable to draw conclusions. Taking into account a nearby Marina’s prices and the Lodge Hill Galgate £79.48 £80.27 difference in facilities only a small increase will be applied.
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