Scottish Canals – Pricing

Strategy

Prepared for:

Scottish Canals Canal House Applecross Street Glasgow G4 9SP

21 July 2016

gva.co.uk/geraldeve.com

Scottish Canals

We are pleased to present our review and conclusions in connection with a pricing strategy for assessing and reviewing fair and reasonable residential and leisure mooring charges across the Scottish Canals canal network. This report also includes a review of transit and navigation licence charges. Contents As is customary with reports of this nature, our findings should be regarded as valid for a limited period of time. We have no responsibility to update our report for events or circumstances which change after the date of this report. 1. INTRODUCTION 3 This report has been prepared as the basis of a consultation between Scottish Canals and their boating customers. It may not be published, reproduced or 2. EXECUTIVE SUMMARY 6 quoted in part or in whole, nor may it be used as the basis for any contract, 3. SCOTTISH CANALS NETWORK OVERVIEW 11 prospectus, agreement or other document without our prior consent, which will not be unreasonably withheld. Any responsibility of Gerald Eve / Bilfinger GVA is 4. CUSTOMER ENGAGEMENT 15 limited to Scottish Canals and any use by third parties shall be solely at the risk 5. FACILITIES AUDIT 20 of Scottish Canals and / or third parties. Our report does not examine any legal or regulatory requirements. 6. CUSTOMER SATISFACTION SURVEY 25

Our Review reflects pricing of comparable transactions which have taken 7. RESIDENTIAL MOORINGS 26 place prior to the EU Referendum. With the Referendum result now clear, there 8. LEISURE MOORINGS 36 is a higher level of uncertainty around future performance of both commercial and residential property, at least in the short term. 9. TRANSIT CHARGES AND NAVIGATIONAL LICENSES 50

Our conclusions are based upon information provided to us by Scottish Canals and other boating organisations along with desk and field based research and discussions with boating users of the canal network. APPENDIX A: CALEDONIAN CANAL FACILITIES MATRIX 54 Thank you for your instruction. We trust this report is a useful reference document for the pricing Consultation. APPENDIX B: CRINAN CANAL FACILITIES MATRIX 55

Yours faithfully, APPENDIX C: FORTH & CLYDE CANAL FACILITIES MATRIX 56 APPENDIX D: UNION CANAL FACILITIES MATRIX 57 APPENDIX E: BLUE SEA CONSULTING REPORT, FEBRUARY 2014 58

Martin Forbes Ian Derrick Partner, Gerald Eve LLP Senior Consultant, Bilfinger GVA

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Scottish Canals 1. Introduction

1. INTRODUCTION In 2014/15, Scottish Canals’ total revenue was £19.15 million. This comprised £8.89 million of Government grant funding plus £10.26 million of other income streams obtained from a number of sources, including The British Waterways Board was established by the Transport Act 1962 mooring charge revenue which totalled £511,000 (2.7% of total to manage and maintain the inland waterways. Under the Scotland revenue). Operating expenditure in the same year was £19.61 million, Act 1998, responsibility for the inland waterways in Scotland was therefore a £0.46 million shortfall against income. devolved to the Scottish Parliament and transferred to The Scottish Ministers in 2001. Similar to most public bodies, Government funding is coming under increasing pressure and organisations are obliged to run themselves in The British Waterways Board, operating as Scottish Canals, operates in a financially responsible manner in order to meet their statutory Scotland as a standalone public body following the transfer of requirements and aims of the Scottish Government (more information functions of the British Waterways Board in England and Wales to the available from Transport Scotland’s paper ‘Making The Most of Canal & River Trust on 2nd July 2012. Scotland’s Canals’).

Scottish Canals’ core duties are set out in legislation which gives them 1.1 Background to Review statutory responsibility for operating and maintaining the waterways in Scotland. Scottish Canals are legally required to “provide services and Whilst Scottish Canals is conscious of its need to operate as if it were a facilities on the inland waterways and port facilities owned or commercial enterprise it also recognises that it has a duty to be fair managed by them with due regard to efficiency, economy and and reasonable and acknowledged that an independent organisation safety”; and comply with a range of other statutory duties and legal was required to review current residential and leisure mooring charges. requirements relating to heritage, water quality, health and safety, As a result Gerald Eve LLP successfully won a tender to undertake the human resources and asset management etc. Review. Following appointment, the original remit of reviewing residential mooring charges was expanded to include leisure mooring In addition, Scottish Canals has a statutory obligation to “exploit charges. commercial opportunities to raise income in support of its navigational and safety functions and have a duty to act as if it were a ‘company At this stage Bilfinger GVA were invited to contribute to the Review engaged in a commercial enterprise in its non-navigation commercial given their specialism in this market. At the same time GVA were activities’”. Scottish Canals is, however, a ‘not for profit’ organisation tasked, in consultation with British Marine and RYA Scotland, to review and all surplus revenue gained through commercial activity is to be re- the cost of Scottish Canal’s transit and navigation licences for the invested in the core business of providing services and facilities to the canal network. canal network and contributing towards the Scottish Government’s purpose.

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Scottish Canals 1. Introduction

For the avoidance of doubt, our remit does not include review of the How do Scottish Canals create a fair and equitable way in which Scottish Canals is run as an Organisation, nor does it methodology for leisure and residential mooring prices? include a review of any contributions / charges made to Scottish Canals by commercial or third party organisations. Our Review is in How do Scottish Canals establish market mooring charges for relation to residential and leisure mooring charges, and transit and residential and leisure moorings across the Scottish canal navigation licence charges only. network?

1.2 Purpose of Review How do Scottish Canals establish a fair and transparent mechanism for reviewing residential and leisure mooring Scottish Canals are required to operate the canal network on a charges in future years? financially sustainable basis, ensure best value is obtained from their existing assets, and seek viable opportunities to fund future investment How do Scottish Canals establish a charging structure for longer in the canal network. term leases?

Residential and leisure moorings form part of the existing asset base. Our understanding is that there is a need to establish a fair and The overarching purpose of this Review is to provide a report with appropriate mooring pricing structure, which is clear and transparent. recommendations to meet the Aims of the Review (outlined below) for Price adjustments over the past few years have created a disparity further Consultation with the boaters. between mooring charges paid by the earlier users of the canals and the more recent users who tend to be paying significantly higher rates. Scottish Canals need to charge fair and reasonable prices in exchange for services provided to residential and leisure mooring customers, in There is a legacy of discontent from some of the boaters who have order to contribute to running costs and maintenance in the canal become accustomed to the comparatively low rates they were paying network to ensure preservation of this national heritage asset and prior to Scottish Canal’s investment in Living on Water (LOW). future viability. Our task is to determine what is a fair charge to the canal users and a fair return to the public purse. 1.4 Methodology

1.3 Aims of the Review Our methodology has evolved as the scope of the instruction has

grown. There were a number of information gathering stages which As publicised by Scottish Canals and as outlined at the three public shaped the outcome of the Review as outlined below: meetings held in February 2016, the Review aims to address the following: Meetings with Scottish Canals to gather and request required

information.

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Scottish Canals 1. Introduction

Gather and analyse Scottish Canals’ existing mooring charges.

Hold public meetings with the boaters to offer a forum for their views to be raised and allow constructive points to be considered in our Review.

Create an inbox for boaters to email contributions.

Appraise Blue Sea Consulting’s February 2014 Leisure Moorings – Pricing Strategy’ report. (We have permission from Blue Sea Consulting to paraphrase the factual content of their Report and the entire report is attached as Appendix E).

Hold consultations with British Marine in order to understand what relevant lessons can be learned from the pricing approach (mooring fees and navigation / transit charges) undertaken by other bodies responsible for the inland UK waterway networks;

Consult with Canal & River Trust and Waterways Ireland to provide an insight into how their pricing strategy has been established.

Review current mooring charges across the wider UK inland waterways and identify a clear rationale/proposal for the appropriate charges for Scottish Canals.

The scope of work was extended following feedback from the public meetings to include inspections and undertake an audit of the facilities provided at each site.

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Scottish Canals 2. Executive Summary

2. EXECUTIVE SUMMARY Given the monopoly position that Scottish Canals effectively has in Scotland, the only approach we considered to be equitable was to benchmark to the relevant local housing market. Residential Moorings To enable us to do this, we analysed how mooring charges at various Prior to the Living on Water (LOW) initiative there had been a locations on the English network related to the 2 bed letting market in piecemeal approach to pricing across the network. As a result there is the respective local area. There was a range of results, but there was a range of charges currently paid by boaters. correlation which suggested mooring charges were c.40-55% of the average monthly rent of a 2 bed flat in the same area. In terms of residential boating, the market in Scotland is relatively new compared to other parts of the UK. We then considered each of the Scottish Canal sites, researched and calculated the average 2 bed rent in each locale. We also canvassed At the time of writing there are 132 residential moorings at 17 sites the views of local letting agents experienced in the markets where across the Scottish Canal network. Each location has its own there were a limited number of properties being actively marketed at distinguishing features and respective mooring charges should reflect the time of our research. the facilities as well as local market conditions. Using these results, we applied a realistic 40% to the average rent, From our study into residential pricing, approaches differ from operator which is below the English average of 47%, to most of the mooring to operator south of the Border – the closest market geographically locations. When assessing the percentage to apply we took on board from which we can extract information. Some have established pricing comments that boaters made regarding the superior nature of the via auction, some charge a flat rate over and above leisure charges, canal networks south of the border. In marina settings, we increased while others set rates according to supply and demand and apply a the rate to 50%, as the evidence supported a higher percentage in first come first served regime. these locations, and we felt this to be reasonable given the increased costs associated with marina development. In light of concerns voiced by boaters as to the means in which Scottish Canals have set pricing in the past (namely auctions), we have The next stage was to reflect the facilities at each location using the considered alternative methodologies other than relying solely upon findings of our facilities audit. We have prepared a Facilities Matrix, existing lettings to establish what fair and reasonable prices should be. and made negative adjustments where necessary.

An initial idea was to explore the cost of creating, maintaining and Thirdly, we considered levels of demand at each location. There are operating residential moorings. Insufficient cost information was presently no waiting lists for any LOW locations therefore we judged available to enable proper analysis on a locational basis, which ruled demand by the number of vacancies at each site and made this approach out. adjustments as deemed necessary. Where there was highest

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Scottish Canals 2. Executive Summary

availability we adjusted prices by -25% and where the site was fully let, Should the exercise just undertaken be repeated periodically we adjusted by +10%. and the residential letting market reviewed and the rates updated accordingly? Lastly, we felt we could not ignore the substantial body of letting evidence created by Scottish Canals over the last 12 months or so, Should rents simply be increased in line with RPI? given this is the very market we are to review. 31 lettings have taken place over this timeframe, and while we have taken on board the Should rents be increased in line with RPI, subject to a minimum and maximum increase of 2% and 5%? circumstances under which some of these prices have been set, we cannot disregard all this evidence entirely. This last step is a ‘sense Our recommendation would be for prices to be reviewed annually check’. If a number of boaters have agreed to pay the same rate at linked to RPI, subject to a collar and cap of 2% and 5%. The link to RPI the same location, this cannot be ignored entirely and reassuringly provides an accepted connection to the wider economy, whilst the underpins our findings in most locations. collar provides Scottish Canals with some growth during low inflationary periods and the cap protects the boaters during periods of high Future Pricing Reviews inflation. We understand that it is the intention of Scottish Canals to standardise It would be left to Scottish Canals to market any vacant moorings with all residential licences in line with the LOW agreements and to review the intention of securing the best figure that the market is prepared to rents periodically. It is important that boaters are consulted on how the pay. Boaters who have already agreed their mooring charge are safe rates charged can be kept in line with the market and we suggest that in the knowledge that any new evidence will not be used to increase the following options are considered: their mooring charges going forward. Should rents be reviewed periodically (either annually or 3 If significant investment (above and beyond maintenance) is to be yearly) to the higher of the passing rent or the rent at which the made in any location, Scottish Canals should reserve the right to mooring might reasonably be expected to be let in the open implement above RPI / 5% charges. Any investment and subsequent market with reference to comparable market rates achieved in price increases should be explained in full to the boaters moored at that area as is the case for LOW agreements? that location.

Should rents be reviewed periodically in line with an average of The Way Forward – Residential Moorings recent deals completed at each location by Scottish Canals? In the case of the older style residential agreements all lettings will be Should rents be reviewed in line with movement in house price transferred to new LOW licences and mooring charges will be set as indices as published by Registers of Scotland? Local indices can per our proposed figures above. Where this results in a significant be created using house price data.

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Scottish Canals 2. Executive Summary

increase in the charge being paid we would recommend that the increase is phased in over a three to five period. The additional increase is phased in over a three to five year period. The additional increase would be over and above the proposed annual rental increase would be over and above the proposed annual rental increase in line with RPI collared at 2% and capped at 5%. increase in line with RPI collared at 2% and capped at 5% to ensure the rent is in line with the current market rent. Where the rent adopted decreases this can either take effect immediately upon commencement of a new licence or be phased in With regards to the LOW licences, which have been negotiated and over an agreed period. Clearly the two sides will have a different view agreed between the parties in the past 3 to 4 years, adoption of our on this point but we would suggest that where the rent has decreased proposed charges will result in instances where some boaters are this should take effect from the start of a new licence. facing an increase and others a decrease. It is clearly important that all parties are consulted in order to establish what the preferred approach Again we would recommend that boaters are consulted on this matter to adoption is. It is also important to make this process as simple as and would suggest the following points be considered. possible. Points for Consultation We are therefore of the opinion there are two options to be considered for consultation. If adoption of the proposed rates results in an increase in the rent to be paid for a mooring, should this increase be paid Points for Consultation immediately upon commencement of a new licence or be phased in over an agreed period, and if so over what time Should all existing LOW rates, as agreed at the outset of the period? original licences, become the initial rent of the new licence and thereafter be reviewed periodically in line with the outcome of If adoption of the proposed rates results in a decrease in rent the rent review consultation above. to be paid for a mooring, should this decrease take place immediately upon commencement of a new licence or be Or should the proposed mooring rates outlined in this Review be phased in over an agreed period, and if so over what time adopted for all LOW licences and thereafter be reviewed period? periodically in line with the outcome of the rent review consultation above? Leisure Moorings

As with the older agreements above, where a new rate results in a There is a substantial body of evidence regularly produced by lettings significant increase then this can either be immediately adopted or on the Scottish Canals. There is however a slight ‘disharmonisation’ as a phased in over an agreed period. We would recommend that this

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Scottish Canals 2. Executive Summary

result of different pricing structures for existing and new customers The Way Forward – Leisure Moorings having been implemented over the years. Our suggestion is that leisure rates are reviewed on an annual basis, It is apparent that there is work undertaken already by Scottish Canals with reference to changes of the pricing of comparator marinas. to pitch rates at appropriate levels to not only maximise income but When an appropriate market rent is achieved, RPI with collar and cap also to ensure moorings are as full as possible. Where there are at 2 % and 5% should be suitable for maintaining the rate, with a full apparent vacancies at a popular location, it is often the case that the review every 3 or 5 years, utilising use of the pricing matrix. The benefit mooring is let, but the boat is out sailing etc. of adopting a pricing matrix is that it can be fine-tuned and ‘tweaked’ depending on feedback or changes at a site which may warrant an We attempted alternative approaches to setting fair and reasonable up or down grade (such as enhanced or reduced facilities). rates but each method would result in anomalies. There are numerous variables which influence pricing. Balancing / weighing up all the Demand should be measured by occupancy levels. If a location is factors is difficult and many results were thrown up which were close to being full then the pricing recommended in the Review should unrealistic when following our original prescriptive matrix. be implemented. Should there be prolonged vacancies at a location Our research has led us to the conclusion that the fairest way to set then consideration should be given by Scottish Canals to offering a pricing is to implement a pricing matrix similar to the one first advanced discount. in 2014 by Blue Sea Consulting (BSC). We have adopted the BSC matrix, but have taken this further and enhanced it based on our own Transit Charges and Navigation Licences research of comparator marinas and the outcome of our facilities audit. Transit charges on the Scottish Canal network have historically increased at a relatively consistent rate. Navigation Licence fees have We compared the comparator mooring rates detailed in the BSC increased 41.4% over a six year period, although remained consistent report (2013 prices) with current pricing (2016). There was a wide between 2012 and 2014. variance in price changes, but the net variance in the change of rates was +28%. One of the principle differences in fees when contrasting operations north and south of the border is the conflicting charging methodology. We have set a ‘standard’ marina charge applicable at each location This difference makes it difficult to accurately compare methodologies which has been subsequently discounted based on the location and as costs in Scotland are partly determined by the use of a boat facilities found at each site. While we acknowledge that there is an whereas in England they are determined by the time period the element of subjectivity to preparing and categorising the matrix, it is licence is purchased for, with each network unique. the most equitable method we have discovered.

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Scottish Canals 2. Executive Summary

We have found no merit in ranking navigational and transit charges by distance that boats travel. This would penalise boaters who decide to travel less and would only be applicable to commercial vessels. A balance is required between the cost of maintaining (i.e. dredging and weeds) the canal against achieving the necessary income.

The Way Forward

We advocate an RPI linked increase to these charges, subject to no worsening of the ability to navigate the canal. Increases over and above RPI should be subject to change in navigation (e.g. increase and decrease in costs of assisted passage) and any other related navigational costs.

Points for Consultation between Scottish Canals and Boaters

Are all parties agreeable to charges remaining at existing levels with annual increases linked to the RPI, subject to a collar and cap of 2% and 5%?

As a general point, it is our recommendation that all mooring licences, both residential and leisure, across the canal network are held on (or moved to) the same terms and conditions. This is fair and reasonable to the boaters as all should be treated the same, and operationally from Scottish Canals point of view, it should assist and simplify management of the moorings.

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Scottish Canals 3. Scottish Canals Network Overview

3. SCOTTISH CANALS NETWORK OVERVIEW The Scottish Canal network extends to 137 miles of inland waterways and is supplied by 19 reservoirs. A summary of the assets on the network includes: 3.1 Introduction 1,500 ha of land and water Scotland’s canals were built between 1768 and 1822 and are 88 locks Scheduled Monuments of National Significance – recognised as part of 98 road bridges Scotland’s rich heritage and safeguarded for future generations. 77 accommodation bridges 50 foot bridges 8 railway bridges 2 tow path bridges Passes through 9 local authorities 22 million visitors per annum

Scottish Canals has a total of 552 moorings across Scotland of which 132 are classed as residential moorings across 17 locations. It is Scottish Canals’ aim to increase this number significantly in the next three years.

The Living on Water / residential moorings concept has been promoted in Scotland over the past three years following a conscious decision by Scottish Canals to invest in this sector, however the market remains relatively immature compared to south of the border *There are no moorings on the Monklands Canal. where there is a large, established market for residential moorings.

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Scottish Canals 3. Scottish Canals Network Overview

There are distinguishable features not only between each of the Scottish Canals operates a number of mooring facilities and one major individual Scottish canals but also between the Scottish and English marina (Seaport, Inverness) on the Caledonian. The visitor facilities at canal network as whole, which has posed a challenge to this Review of Banavie and Fort Augustus service major tourist hubs and as such are residential moorings. extremely popular (and often over-subscribed) whilst the longer stay moorings at Dochgarroch and Seaport are fully let, with waiting lists. In In terms of leisure boating, this market is more mature and there are addition, the privately owned Caley Marina and Inverness Marina are Scottish comparator locations from which we are able to draw also fully subscribed. evidence. The comparisons are costal marinas and adjustment is required to adequately reflect the inherent characteristics of the canal Caley Marina and Inverness Marina provide service and repair facilities network. for visiting and permanent berth holders.

Further detail on each of the canals is found below. As mentioned There are also a number of passenger/trip boats and charter vessels above, we have consent from Blue Sea Consulting to paraphrase their working on the canal. factual descriptions of the canals, which we have checked for accuracy: 3.3 Crinan Canal

3.2 Caledonian Canal Name Max. Craft Beam Draft Length Name Max. Craft Beam Draft Length Crinan Canal – 9 miles 26.82m (88ft) 6.09m (20ft) 2.2m (7.3ft)

Caledonian Canal – 45.72m (150ft) 10.67m (35ft) 4.1m (13.5ft) 60 miles The Crinan Canal is a scenic short cut allowing vessels to move from the Clyde to the West Coast, without having to round the Mull of Kintyre. The Caledonian Canal is Scottish Canals’ largest canal stretching from Inverness, in the east, to Corpach, in the west, and runs through some Whilst there are long term leisure berth opportunities at Ardrishaig Basin, of the most dramatic scenery to be found on any waterway in the Bellanoch Marina and Crinan Basin the canal is generally perceived as United Kingdom. Its former role as a commercial east/west link is clear a “transit canal” and as such most vessels will only remain for a day or from the dimensions of its locks and for this reason it makes an ideal so. The locks are not powered and therefore the transiting vessels need short cut across Scotland for many leisure craft and small commercial to be fully crewed if they are to enjoy the passage. vessels.

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Scottish Canals 3. Scottish Canals Network Overview

In 2016 Scottish Canals took the decision to cancel the “assisted Whilst lesser known than the Caledonian and Crinan canals by the passage” scheme to help coastal leisure boating market, the Forth and Clyde Canal still provides short-handed vessels pass a popular, valuable and interesting lowland passage between the East through the network more and West Coast of Scotland and has an established community. easily. We received mixed Opened up as a result of the Millennium Link Project the canal is feedback on this scheme restricted not only by draft, but also by a number of low bridges and for from boaters. For vessels these reasons yachts have to dismast at Grangemouth or at Bowling. requiring assistance, a Many modern motor boats (even up to 40ft), which do not have Partnership with a local flybridges may be able to transit the canal, with the exception of the business, the Yot Spot can Glasgow Branch which is both shallower and narrower. There are a now offer assisted passage number of boats which enjoy the canal life of the Forth and Clyde from April to October. Canal and the Union and rarely leave their confines.

The ability to moor additional craft on the canal is limited but more The Forth and Clyde canal moorings and stopping points would, we understand, be popular. has seen many developments over the A relatively new facilities block has been constructed at Crinan. While years such as the Falkirk mixed views have been received in connection with the new facility, it Wheel - connecting it to may encourage more people to stay overnight in the basin when the smaller and narrower berths are available. There is also scope for vessels to anchor off the Union Canal - the Helix Park adjacent hotel in good weather. Around the villages of Crinan, and the 30 m high Kelpie Ardrishaig and Cairnbaan there are cafes and restaurants and in the Horse Sculptures on its winter boats are hauled out ashore at Cairnbaan. Crinan also has a banks. The Paddle Sports good boatyard and chandler nearby. Centre at Pinkston in the centre of Glasgow on the Glasgow branch opened in 2014 and 3.4 Forth & Clyde Canal provides a unique facility in the city. Also in the early part of 2014 the

new 1km canal extension opened at Grangemouth making the Name Max. Craft Beam Draft eastern most access to the canal easier, ensuring that the transit of the Length canal will appeal to even more boats from both the east and west and Forth & Clyde Canal – 6.00m (19ft 1.83m (6ft) / Air. 3.00m 19.20 (63ft) 35 miles 8in) (9ft 10in) making it even easier for boats based on the canal to access the Firth of Forth.

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Scottish Canals 3. Scottish Canals Network Overview

Passing through a mix of scenery, communities, heritage and nature The Union Canal runs from the centre of Edinburgh, at Edinburgh Quay the Forth and Clyde Canal has a number of marinas on it, ranging from to the Falkirk Wheel and small modern basins housing twenty plus boats to the larger facilities at is the closest comparison Grangemouth Sea Lock and Auchinstarry. to a traditional English canal that is to be found The linear moorings along the canal are of varying ages and fit-out. in Scotland. It does not Being mainly in the densely populated Scottish central belt, the canal is benefit from the vast popular with boaters, network that is available anglers, paddlers, rowers, to Canal Boats in walkers and cyclists and England and Wales, but as such is, in places, busy is none the less well and vibrant; this can lead populated by traditional to conflict and for certain narrow boats. mooring areas to be busy and potentially less Being a contour canal the Union benefits from not having numerous popular with long term locks to navigate and as such is an easy and relaxed canal to use. The boaters as there is scenery is attractive and again history, heritage and nature feature. demand on the facilities. Hire boats and trip boats operate along its length which can access Scottish Canals are the Forth and Clyde via the Falkirk Wheel. The size restrictions require a aware of the conflicts and we understand work (as they are obligated differing style of mooring facility when compared to the other Scottish to do) with all the interest groups to ensure the Canal can be enjoyed Canals and they are predominantly linear in nature. by all and that the varied uses coexist as harmoniously as possible and benefit each other. What contributions other user groups make to the maintenance and upkeep of the canal network are out with the scope of this Review.

3.5 Union Canal

Name Max. Craft Beam Draft Length Union Canal – 31 3.50m (11ft 1.07m (3ft 6in) / Air. 2.70m 20.5 (67ft 6in) miles 6in) (8ft 11in)

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Scottish Canals 4. Customer Engagement

4. CUSTOMER ENGAGEMENT 4.4 Lowlands Canals

On the 3rd February 2016 we met with 25-30 boaters at the Falkirk 4.1 Public Meetings Wheel. There was a mix of leisure, residential, commercial and charity

interests represented. Again, a very insightful meeting was had with Scottish Canals arranged for three meetings, held in early February many relevant suggestions and points made. 2016, for us to engage with their boating customers. These meetings were held to enable us to gain an insight into the boater community, 4.5 Email Address – [email protected] (now closed) gain better understanding of the issues experienced by boaters, and as a forum for constructive discussion relevant to our Review. A large In addition to the public meetings, an email address was set up to number of points raised were applicable across all three canals. We allow boaters an alternative method of submitting information or views. have therefore summarised the key points/ideas relevant to this The email address was advertised at the public meetings and on Review. Scottish Canals’ website. 21 boaters emailed with feedback for our

consideration. A number of these boaters had been in attendance at 4.2 Caledonian Canal one of the meetings. Again, a number of observations and constructive

comments were made / reiterated by boaters. On the 4th February 2016 we met with c.30 leisure, residential and charity representing boaters at the Kingsmill Hotel in Inverness. There 4.6 Boaters Feedback were a small number of vocal attendees present amongst the group and it was clear from the atmosphere in the room that there was a We outline the pertinent points made by Boaters, in no particular order, difficult relationship between Scottish Canals and a number of these which have assisted us with our deliberations. While relevant to customers. Notwithstanding, a number of constructive points were individual site pricing, we have not listed the many site specific made. comments made and focused in this section on comments relevant to suitable methodology for setting fair and reasonable charges. 4.3 Crinan Canal

General On the 2nd February 2016 we met 7 boaters at the Argyll Arms Hotel in

Ardrishaig. The meeting provided helpful insight to the workings of the Mooring price should be a total charge including Boat Safety canal, and constructive feedback and suggestions were given. Certificate / navigation licence;

Charges should reflect facilities /services provided at each location;

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Scottish Canals 4. Customer Engagement

An income / revenue basis should be considered; Cannot compare with European canals – a more mature market; An understanding of supply / demand is important and details of the waiting lists Scottish Canals hold should be requested. Cannot compare with English canals – a more mature market and greater distances to cruise; There were mixed feelings about level of service remaining at status quo if the prices were to remain stable/reduce – i.e. some Mooring charges seem to only take into account facilities - not wanted better facilities and some were happy for services to cruising information/distances which is an important draw to the remain at current levels if it meant the price did not increase. lifestyle/hobby. A criticism of the Blue Sea Consulting Report Some like more basic environment and were willing to pay less was that cruising distances were not reflected. Boaters want to for lower level of services; cruise. Scottish Canals do not seem to understand this is an attraction of boating; When undertaking review need to have recognition of inherent restraints the canal has; Inherent restrictions of canal include the fact boaters cannot cruise and then return to ‘home’ in same weekend due to lock Inflationary increases would be in principle acceptable; restrictions;

Any above inflationary increase would need to correlate with How did British Waterways obtain their prices previously in improvement in facilities/services; Scotland? Seemed to work quite well;

Charging increases need to be transparent. Maintenance levels lower / services not increased since British Waterways days;

Boaters need to be able to plan and budget ahead; If prices are reasonable, this will attract more boaters and

create better and safer environment – boaters want this; Avoid shock similar to 60% increase in navigation charges – this was not received well. Where high availability, prices should be lowered to attract boaters. Overall, this would have desired effect of increased In the past, Scottish Canals tried to compare and apply marina income; rates to canals – this is not believed to be comparable; Imperative that a fair and transparent mechanism for Relativity in locations – needs to be reflected; establishing and reviewing charges is way forward;

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Scottish Canals 4. Customer Engagement

Cannot compare superior marinas e.g. Inverkip incomparable On some canals (e.g. France) pay per lock/tolls for transiting; with Scottish Canal marinas; Residential / LOW Coastal marinas do not compare with inland marinas; Not agreeable to e-bay/auctions being used to set prices and Prices – boaters want certainty over 3-5 years. Boaters invest cannot use e-bay/auction “evidence”. Need to go back to first large amounts in boats and need to be able to budget; principles – boaters wanted assurances we would do that and not use Scottish Canals’ information as it is unreliable and a Rent review mechanism – inflation / price of living; perception that prices gained in suspicious circumstances;

5% - 10% increases in past – not well received. Difficult to cope Once a residential price has been agreed the price should only with infrequent nature and magnitude of price increases; increase in line with RPI thereafter whilst that mooring occupier

remains a customer. Other moorings can be let at the prevailing Pensions – linked to inflation so can’t afford above inflation market rate even if this happens to be higher (or lower) than price increases; the previously agreed rates;

Market charges then inflation + x% each year thereafter; We were asked to review number of boats on the market for

Accepted that if investment were made at a site / tangible sale at each location to understand supply and demand; reasons it would be acceptable for a “reasonable” price Council Tax at Kirkintilloch was comparable to mooring charges increase above inflation; years ago – why not link mooring charge to Council Tax. A

counter point was made that Council Tax has been held If at one location there were improvements and a reasonable artificially low for a number of years and no longer relevant; increase imposed then how would it work if someone “cruised”

along canal from elsewhere and used the new facilities. Their Views were that boaters generally happy with pricing based on prices have not increased - is that fair? length of boat;

Suggestion – if say a 3 year licence, freeze prices i.e. no LOW charges not based on length. increase for duration of licence.

LOW licence is restrictive if want to sell boat. Boat and mooring cannot be sold together without penalty.

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Scottish Canals 4. Customer Engagement

Leisure purchase of a boat, and future mooring charges are at this time an unknown variable. An alternative for leisure boaters would be to sell up and buy a camper van which would be cheaper, and provide more A number of boaters commented on the difficulty in which information freedom and flexibility. We should consider caravan parks for a in connection with pricing could be obtained from Scottish Canals, and guide to pricing; the lack of user-friendliness of the website for boating customers was raised. Conversely, the caravan sector was said by some to be incomparable – as far more competition and mature market; Many boaters feel trapped in their current position, with the inability to assign a mooring without financial penalty when they wish to sell their Categorisation / star ratings – suggested by a leisure user (similar boat. The position is reversed, in that when a boater wants to buy a to camping sites); boat no mooring is reportedly available in their desired location. How Look to other marinas for pricing guidance – but reflect to tackle this issue is out with the parameters of this Review, however difference in characteristics. we suggest further consideration is given by Scottish Canals on how best to address this. 4.7 Conclusions from the Boaters Feedback An outcome from the boater feedback was a requirement to visit each It was clear to see that the boaters are passionate about their way of of the main sites across the network. Scottish Canals agreed with us life / hobby, use of the canals, and want to see the network thrive. The that to undertake our Review thoroughly the remit required to be atmosphere at each of the meetings differed, but common themes expanded to allow a facilities audit to be carried out. This is detailed in emanated from all. Section 5.

The canals users have established a community and are keen to A large number of comments raised at the meeting and via email were attract additional new boaters to the canals for a number of reasons directed at a decline in customer service levels, maintenance, including safety, camaraderie etc. Price is one of the barriers to entry unsatisfactory opening dates/hours, trust/integrity and dissatisfaction and if the price is attractive enough, it will not only encourage existing with head office functions/the way in which Scottish Canals operates. It canals users to remain, but also entice new boaters to this way of life / was clear similar frustrations were felt across the entire canal network, past time. to varying degrees.

Transparency over how prices have been arrived at, and future price Dissatisfaction with customer and maintenance service levels etc is increases was a concern. Boaters want clarity to enable them to difficult to accurately quantify and reflect in a pricing strategy. There is budget for their chosen lifestyle. Most have invested heavily in the

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Scottish Canals 4. Customer Engagement

clearly an intangible and variable ‘human’ element involved and it was evident from the feedback received that service levels fluctuate widely on an individual basis. The service and customer care from the likes of former Crinan Canal Harbour Master, Alec Howie, and his team were commended by a number of boaters and likely the reason for a feeling of higher satisfaction from users of the Crinan Canal. Ultimately dissatisfaction manifests itself in customer demand levels.

We were interested to learn if the degree of general dissatisfaction which we encountered at the public meetings expressed was in fact the general mood, and we were keen to ensure as many boaters as possible were allowed their say. On the whole, the feedback which Scottish Canals apparently receive tends to be more positive than negative which contradicted the sentiment at the meetings. It was suggested that the findings of the most recent Customer Satisfaction Survey was shared with us to consider comments from as wide a catchment as possible. A summary of the findings is provided at Section 6.

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Scottish Canals 5. Facilities Audit

5. FACILITIES AUDIT Issues with stones being thrown at residential boats.

At the time of our inspection there was large boat being One of the outcomes of the public meeting was a need to visit each refurbished on the next pontoon to the residential moorings, site to review the facilities on offer and to cross check that the facilities although Scottish Canals’ rules do not allow this and work was have been correctly advertised. Again, Scottish Canals were going on until 11 pm. responsible for communicating the dates and approximate times of our visits. Disgruntlement with Scottish Canals’ staff in terms of service/attitude (from 3 boaters). 5.1 Caledonian Canal Dochgarroch: The main sites on the Caledonian Canal were inspected on 7th April 2016 and the following are observations made and comments At Dochgarroch there was a complaint at the priority that received from boaters. Jacobite Cruisers enjoys having now taken over the main visitors’ berth. Seaport Marina/Muirtown: This causes issues for boaters east of the lock if they return too late Pump Out - according to the facilities matrix advertised by Scottish to get through the lock, as often there is nowhere to tie up Canals, there is a pump out at Seaport Marina/Muirtown. The overnight. We understand that there is a proposal to remove a location of the pump out is however at the top of the Muirtown barge from Dochgarroch West and add further transit berths to Locks. In the winter it is not possible to access the pump out at the alleviate the problem. It would be useful to know when this is due weekend as the locks are closed. In addition, according to local to happen as the argument is that the cost of moorings in boaters, the facility was out of use a number of times last year. Dochgarroch East cannot be worth as much as they were as they now are disadvantaged by the lack of transit berths in LOW moorings are furthest from the facilities. (The Counter Dochgarroch West. (The position may have altered since our argument was made by Scottish Canal staff that LOW moorings inspection). are located at the quieter end of the marina). Laggan Top and Banavie: No water supply for leisure moorings on Pontoons 1 & 2 at Seaport. We understand these are due to be replaced. It would be useful to The facilities matrix advertises a shop nearby - at both locations, know when as they are in a poorer condition compared to the the reality is that a significant walk or a car is needed to reach others and do not have a water supply.

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Scottish Canals 5. Facilities Audit

the service. In more general terms, the following comments were raised: Looked like water was available but not shown on skippers guide. Operating times restrict easy enjoyment of canal use. Crinan Basin: Fuel supply - there is a supply at a number of locations but this tends to be more expensive than competition. General feeling amongst users that facilities block, while looks great, is not functional. Laundry facilities still not available as at 5.2 Crinan Canal time of inspection.

The main sites on the Crinan Canal were inspected on 7th April 2016 Car parking at peak season can be difficult. and the following observations made. No boaters were in attendance during the visits but Alec Howie, now retired Harbour Master, provided 5.3 The Lowlands Canals a tour of Crinan Basin. The main sites on the Lowlands Canals were inspected on 4th, 5th and Ardrishaig – Lock 1: 7th April 2016 and the following observations made and comments received from boaters. Shower facilities in poor condition. Bowling: Ardrishaig Basin: Boaters feel WC blocks insufficient – not big enough if Scottish Facilities in general not very easy to find/identify. Canals want to attract more boaters.

Lock 11 Bridge: WCs deep cleaned for the first time in a long time the day before our visit. Residential boaters say they usually have to Broken lock on toilet. deep clean them.

Bellanoch Bridge: The boaters oppose the proposed development of flats adjacent to the pontoons. There is a fear that residential Phone box does not work and has not done so for several years development will lead to unsociable behaviour, akin to that apparently (according to a local). experienced at Leamington in Edinburgh.

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Scottish Canals 5. Facilities Audit

There is a perception that the development of the archways is Estimated 11 boats on the market for sale. a waste of money. Further development mooted which does not seem to stack up given there are existing vacant units. We Falkirk Wheel: understand tenants have expressed an interest, but have been frustrated by a lack of commercial reality (i.e. Scottish Canals Elsan - in poor condition. were not willing to grant a sufficiently long term lease to allow an operator to write off fit out costs). Security – some issues with youths targeting boats on the linear moorings. In order to develop revenue streams, whilst at the same time promoting canal related use, the boaters had the idea of Grangemouth (Kelpies): developing a boat yard on the land Scottish Canals plans to sell for flats. Insurance companies increasingly insist boaters store WC - flushing issues. boats on land off-season due to increased claims due to bad weather etc. Development of a Marina is also a plausible idea Showers – water pressure problems. however a view was expressed that there may be a conflict of interest as a Scottish Canals’ Board Member is a Director at Security – pontoons have unsecure gates. Greenock (we do not know the extent to which any business plan has been researched for viability or feasibility). Can be heavily populated with tourists visiting, using facilities and ‘being nosy’. Auchinstarry: Causewayend: Pump out – issue with smell. Security – issues. Request by residents to secure pontoon Security – issues with youths from surrounding areas. refused by Scottish Canals due to ‘right of way’ access.

Security – pontoons not secure; can bypass the lock. Also, locks Linlithgow: on linear mooring are broken. Lack of signage for residential moorings. Refuse Collection – not good condition. No water, but this is advertised. Tired looking and maintenance is in general poor. Parking advertised but not nearby.

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Scottish Canals 5. Facilities Audit

Boaters commented that they would like to see more facilities – i.e. WC and shower block, CCTV, lights behind storage sheds, Misrepresentation in marketing material about the location lockable sheds, pump out facilities, gates on pontoons. being quiet and secluded.

Limited navigation of canal. 5.4 Facilities Matrix

More facilities for visitor boats required. As a result of comments received at the boaters’ meetings we decided that it would be useful to try and prepare a matrix that would allow the Issues obtaining a registered address with the Council. benefits and issues of each location to be taken into account when assessing pricing. Ratho: In order for us to provide a full analysis of each mooring location / Laundry - constant issues with facilities. marina we have developed a guide to facilities and services outlined in the table below. This involves scoring a range of criteria and services Security – some issues with youths targeting boats on the linear on a rating of 10 (excellent) to 0 (very poor). This has influenced our moorings. residential mooring pricing review detailed in Section 7 and was used to review Blue Sea Consulting’s matrix which was used in undertaking Safety – need more than one ladder in the basin. our leisure mooring pricing review and matrix detailed in Section 8.4.

Safety – poor paving – could cause an accident. Guide to Facilities/Services Matrix ( 0- 10 sliding scale)

Water Supply – fully functioning water supply 10; no water supply 0 Harrison Park: Toilets – Modern purpose built facility 10; graded down for No access to shower – lock broken. age/condition/number; no toilets 0 Showers – Modern purpose built facility 10; graded down for Leamington Wharf and Lochrin Basin / Edinburgh Quay: age/condition/number; no showers 0

Electricity – Power supply to bollard 10; no power 0 Facilities – not easily accessible and insufficient for the number of boaters at peak times of the year. Fuel Supply – Fuel within location 10; graded down if nearby; no fuel 0 Refuse collection – Regular refuse collection 10; no refuse collection 0 Security and safety issues – well documented. Pump out – Modern functioning pump out facility in location 10: graded down

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Scottish Canals 5. Facilities Audit

Guide to Facilities/Services Matrix ( 0- 10 sliding scale) Guide to Facilities/Services Matrix ( 0- 10 sliding scale) for age/condition/proximity; no pump out 0 Scenic beauty – attractive open countryside location 10; graded down to Storage (Residential only) – Modern functional storage provided at location 10; city/town 0 no storage 0 Shops nearby – Good quality convenience store with 10 minutes’ walk 10, Our facilities matrix scoring is subjective, although we have attempted graded down for offer and distance away; no shops 0 to ensure consistency by reference to the above guide. Laundry – modern purpose built facility at location 10; graded down for age/condition/proximity; no laundry 0 As part of this exercise we asked Scottish Canals to appoint someone with good working knowledge of the canals to independently score Security/Safety – Fully secured site or no issues 10; graded down for proximity to urban areas and no security 0 the facilities. While there were naturally some variances, there were no wide discrepancies and on balance the resultant scores for each Parking – dedicated parking at location 10; graded down for number and location were relatively close. proximity; no parking 0

Telephone – Telephone or strong mobile signal 10; no telephone or signal 0

Chandlery - modern purpose built facility at location 10; no chandlery 0

Boatyard – boatyard at location 10; no boatyard 0

Proximity to sea – 24 hour access to sea 10; graded down for restrictions due to locks or operational hours say -2 for each lock; no access 0

Inland shelter – there are benefits to being inland, best of both 10; grade down the further inland?

Cruising distances – uninterrupted cruising 10; grade down 2 for multiples of 4 miles; less than 2 miles 0

Pub – Modern pub within 10 minutes’ walk 10; graded down for quality and proximity; no pub 0

Restaurant - Modern restaurant within 10 minutes’ walk 10; graded down for quality and proximity; no restaurant 0

Proximity to city/town amenities – city or town centre within 10 minutes’ walk 10; graded down for proximity; remote location 0

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Scottish Canals 6. Customer Satisfaction Survey

6. CUSTOMER SATISFACTION SURVEY were happy to berth their boat with Scottish Canals. The reason given by 16 of the 26 negative respondents included price. Lack of and poor maintenance of services, lack of dredging, lack of communication, As mentioned above, Scottish Canals have commissioned a Customer lack of transit moorings and speed of passing boats were other reasons Satisfaction Survey for the three main locations and this was still listed. ongoing at the time of writing this report. It is intended that this survey will be carried out annually. We have been provided with some initial 6.4 Conclusion findings from the review and a brief summary of these are provided below. On balance we were surprised with the outcome of the survey. Following the public meetings, we were left with a strong perception 6.1 Caledonian Canal that Scottish Canals’ customers were very dissatisfied. The results of this survey prove this is not so, and while there are clearly issues that require to be addressed, and there are boaters who have undoubtedly in their There were 49 long term berth holder respondents to the survey, 40 of opinion had bad experiences, there appears to be a large number of which are leisure users. Of the respondents, 38 or 78% were happy to content boaters across the canal network. Many of the comments berth their boat with Scottish Canals. Of the 11 respondents who were positive and complimentary of Scottish Canals. answered in the negative, there were a range of reasons, but only three cited price as the main pressing concern for their negative Recipients of bad customer service tend to be more vociferous and response. ready to give feedback compared with those who have had a more positive experience. That said, often there can be a ‘silent majority’ 6.2 Crinan Canal and this survey was important to try and establish if the mood we

experienced at the meetings was indicative of the general feeling of There were 5 responses from Crinan Canal long term berth holders, all all the canal users. of which are leisure users. 80% were happy to berth their boat with Scottish Canals. The reason given by the negative respondent was ‘the recent price consultancy and inactivity on fixing the barrier at Bellanoch Marina and the Crinan toilet block’.

6.3 Lowlands Canal

There were 72 responses from Lowland Canal long term berth holders, of which 39 are leisure users, 29 residential, and 4 commercial. 64%

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Scottish Canals 7. Residential Moorings

7. RESIDENTIAL MOORINGS One of the challenges we encountered was to understand why there was such disparity, even at a location where all things being equal two mooring sites should be paying roughly the same, such has been the 7.1 Introduction sporadic approach in the past. When some boaters advise they have faced a significant increase, it may be as a result of starting off from an In this section Residential Moorings include Living On Water (LOW), unrealistically low base. Nevertheless, it is not practical for erratic price Residential and Liveaboard Moorings. increases of varying degrees to be implemented, as Scottish Canals, and their boaters require to plan ahead and budget accordingly like For the purposes of this review these categories are described as any household/business. follows: In terms of residential boating, the market in Scotland is relatively new LOW Residential – An initiative started in 2012 by Scottish Canals to compared to other parts of the UK where a large and diverse sector provide the opportunity to experience a different way of life living on has grown over the years with a number of operators competing to Scotland’s canal network. Considerable expenditure has been made provide residential moorings. The canal network in Scotland is the only to meet planning regulations and to provide pontoons and facilities to feasible location for residential moorings and, as its custodian, Scottish make this a possibility at a number of locations primarily across Central Canals has a unique position and an unrivalled influence in the market. Scotland as well as at Inverness. During the course of the public meetings it was suggested to us that we should not be comparing the Scottish Canal network with the English Residential – Residential mooring licences which have planning Canal network, which is considerably more mature and offers different consent but pre-date the Living on Water initiative. opportunities. This is however the closest market from which we can draw any kind of comparison, albeit adjustments are required to reflect Liveaboard – Those living on board their boat but not moored in one the fundamental differences between the two markets. particular location at a residential / LOW mooring. An issue arises when the boater fails to regularly move and thus become residential without In undertaking this review we spoke with representatives of Canal and the necessary planning permission or paying the appropriate mooring River Trust (CRT), British Waterways Marinas Limited (BWML), Waterways fee. Ireland and The Bridgewater Canal who were all very helpful but it became apparent that all had different ways of setting prices and Prior to the LOW initiative there had been a piecemeal and ad-hoc administering their canals or river ways. approach to pricing across the canal network. As a result there exists a wide range of charges currently being paid by boaters, even in the CRT advised that they do not publish their pricing and it is very much same location, across the three categories listed above. arrived at on a supply and demand basis at individual locations. Residential moorings at popular locations are auctioned whilst the less popular locations are priced relative to the local market and

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Scottish Canals 7. Residential Moorings

advertised accordingly. BWML differ slightly from CRT in that they do The practice of ‘closing dates’ in the wider property market is a not use the auction approach but set their prices relative to nearby possible method that could be adopted in the moorings market place competition and then let on a ‘first come first served’ basis. Both where there is strong demand for a vacant mooring instead of an on- operators review their prices annually in line with movement in the line auction process where the identity of the other bidders is unknown. market relative to their mooring locations. We also spoke to a Sealed best bids are invited, assessed and a time limit set to purify any representative of The Bridgewater Canal and understand that they conditions contained within the offer. The highest offer does not charge a flat rate of £1,000 plus the relevant leisure rate per annum. necessarily need to be accepted, other factors may result in a lower offer appealing more. In the housing market, disclosure of all the bids Waterways Ireland’s pricing is determined in accordance with Bye-laws and conditions is not generally made and this is accepted practice. and Statute dating from the 1980s and as a result this was of no assistance to for our Review. Whilst on the topic of the general housing market, there is a ‘buyer beware’ caveat whereby a purchaser is expected to undertake We were also asked, in a few locations, not to use the evidence ‘set’ necessary due diligence prior to purchase. Although, marketing by boaters as some of the prices had been established by auction and information has to comply with the Property Misdescription Act 1991 there was concern that the auction process had not been truly whereby a buyer cannot be misled into a purchase, there is no transparent and fair. On the other hand, Scottish Canals stated that requirement on sales information to alert the purchaser to defects / the auction process was conducted independently and was entirely disadvantages of a property – the purchaser is expected to do their above board and was used to establish mooring rates in the absence homework. We would expect a degree of ‘buyer beware’ to apply in of any market precedent in Scotland when the LOW concept was first the moorings market as well. launched. Latterly, we understand that the majority of new mooring 7.2 Background prices have been set by fixed price, negotiation or best bids in higher demand locations. We have listened to both sides and while we are At the time of writing there were 132 residential moorings at 17 not in a position to comment on the validity or otherwise of the claims, locations across the Scottish Canal network representing approximately we have considered alternative approaches to pricing in our Review. 24% of the total number of moorings on the Scottish Canal network. The moorings are currently categorised and distributed as follows: We have however made the observation that setting prices by way of auction is a method used by CRT where there is strong demand for moorings in a location. Whilst we would suggest that this method is relevant for setting fair prices in a situation where there is high competing demand, if it is to be implemented then the process has to provide boaters with confidence in its transparency.

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Scottish Canals 7. Residential Moorings

Table 7.2.1: Mooring allocation in terms of supply and demand, and also any additional investment in the location in terms of facilities or services. LOW Residential Site Liveaboard (of which vacant) (of which vacant) As a result of the range of influencing factors, prices for residential Muirtown 16 0 4 moorings vary considerably across the UK from anything up to and Dochgarroch 0 0 3 beyond £10,000 per mooring pa. The top end prices are achieved in Gairlochy 0 0 2 and around London and the south east with other city or large town Ardrishaig 0 0 1 locations achieving between £4,000 and £7,000 per berth pa. Cairnbaan 0 0 1 Bowling Lower 0 0 2 There are different approaches to establishing charges from one Bowling Upper 4(3) 0 0 operator to another. As mentioned above some have established their Bowling Helenslea 8(4) 4 0 residential rates through Applecross Wharf 6(2) 0 0 auctions; others charge an Speirs Wharf 8(4) 0 0 additional flat rate on top Cadder Wharf 6(6) 0 0 of the relevant leisure rate Southbank Marina 8(6) 0 0 to reflect the higher costs Auchinstarry 1 9(3) 0 associated with residential Kelpies Marina 3 0 1 moorings; whilst another Causewayend Basin 6 0 0 Linlithgow East 4 0 0 sets a rate and then Ratho Marina 8 0 0 operates a first come first Ratho Linear 1 5 2 served regime. Where Leamington Wharf 15 0 0 demand is low all Lochrin Basin 2 0 2 operators assess charges in the local area and a price is set Totals 96(25) 18(3) 18 accordingly. A prolonged period of vacancy will likely require a downwards adjustment. 7.3 Residential Mooring Rates In light of concerns expressed at the public meetings regarding the means in which certain charges have been established we have given As already mentioned above, each location has its own distinguishing considerable consideration to how fair market mooring charges can features in terms of proximity to cities/towns or scenic rural location and be arrived at. An initial approach had been to consider the cost of provision of facilities from the basics such as power and water to creating and operating the moorings and calculate what income proximity to shops and restaurants. The respective mooring charges would be required to cover the cost. Whist we understand that the should reflect the facilities provided as well as local market conditions approximate cost of creating residential mooring sites with standard

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Scottish Canals 7. Residential Moorings

facilities is in the order of £25,000 to £30,000 per mooring, Scottish Whixall Marina, Llangollen £247 £460 54% Canals cannot provide costs for specific mooring locations given the Shrops. Leeds & White Bear way in which works are procured. £297 £538 55% Liverpool Marina, Lancs. Galgate Marina, We have, therefore, come to the conclusion that the best way we can Lancaster £290 £525 55% Lancs. be sure of calculating appropriate rates is to benchmark mooring River Great Priory Marin, £408 £707 58% charges to the relevant local residential market. For this reason we Ouse Beds. have looked at what information we could find in England and Average 47% examined how the rates charged relate to the rents achieved for 2 bed flats located as close as possible to the particular mooring. The There was a range of results but there is a correlation between monthly results are contained in the following table: mooring charges and the average monthly rent for a 2-bed flat. The evidence indicated that in many cases monthly mooring charges were Table 7.3.1: Relationship between Mooring Rates and 2 bed flat rents (England) c. 40-55% of the average monthly rent of a 2-bed flat in the same area.

The rate increases to 50%-60% when looking at offline marinas and the Mooring Rate Mooring 2-Bed Flat average rate across the sample was 47%. Canal/Waterway Site relative to 2- Rate pcm Rate pcm Bed Rate We are therefore of the view that a realistic approach to establishing Worcester & Diglis Basin £290 £785 37% mooring charges can be calculated as a percentage of rents for 2- Birmingham Marina, Worcs. Paddington Engineers Wharf, bed flats in (or close to) each location. We have adopted a figure Arm, Grand Northolt, West £490 £1,225 40% below the English average of 40% across the sites with the exception of Union London Muirtown, Southbank, Auchinstarry and Ratho Marinas where we have Market adopted 50% to reflect the offline marina configuration. Offline Grand Union, Harsborough £267 £600 40% Leicester Arm Basin/Union marinas are more expensive to develop and therefore it is equitable to Wharf link these locations to a higher percentage. Cowroast Grand Union £458 £1,129 41% Marina, Herts. We have researched average rents sought for 2-bed flats located as Coventry Exhall Basin £266 £622 43% close as possible to each of Scottish Canals’ residential mooring Ripon Ripon Racecourse, £295 £618 48% locations and also spoke to local letting agents to produce the figures Yorks. outlined below. We have then calculated notional mooring rates using Hull Marina, Humber £324 £679 48% 40% or 50% of the annual rent to arrive at the following mooring rates: Yorks. Sawley Marina, River Trent £284 £544 52% Notts.

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Scottish Canals 7. Residential Moorings

Table 7.3.2: Relationship between Mooring Rates and 2 bed flat rents (Scotland) rents are usually agreed as little negotiation takes place in this marketplace. These calculations produce a range of notional rental 40% of Notional Ave. 2-bed rates for moorings ranging from £2,160 pa at the Crinan Canal Comparison Rental Rate pa Mooring Site Rental Rate locations to £4,680 pa at the Edinburgh locations. City/Town Rate (pcm)* (pcm) The next stage was to ensure the rate reflected the specific benefits Muirtown Inverness £625 £313** £3,750 and issues of each location and at this point we referred to the Dochgarroch Dochgarroch £550 £220 £2,640 Facilities Matrix introduced at Section 5 above. We looked at those Gairlochy Fort William £625 £250 £3,000 areas where an influencing factor scored 3 or less and deducted one Ardrishaig Lochgilphead £450 £180 £2,160 point and where the score was between 4 and 6 we deducted 0.5. We Cairnbaan Lochgilphead £450 £180 £2,160 took the view that if a score of 7 or more was awarded then the facility Bowling/ was of a sufficient standard/provision. These negative points were Bowling £575 £230 £2,760 Dumbarton totalled and converted into a percentage to adjust the notional figures Bowling – Lower Bowling/ £575 £288* £3,450 previously arrived at. Basin / Harbour Dumbarton Applecross Glasgow £635 £254 £3,048 Speirs Wharf Glasgow £635 £254 £3,048 Finally, we considered levels of demand for each of the locations as an Southbank Kirkintilloch £520 £260** £3,120 overarching influence. There are no waiting lists for LOW moorings, therefore we have judged demand by the number of vacancies at Cadder Bishopbriggs £575 £230 £2,760 each site. This last ‘sense check’ step is considered a fundamental part Auchinstarry Kilsyth £475 £238** £2,850 Grangemouth/ of the equation and is evolutionary to take account of variable factors Kelpies Marina £475 £190 £2,280 Falkirk in the future. Linlithgow Linlithgow £675 £270 £3,240 Causewayend Linlithgow £675 £270 £3,240 We graded each site based on the number of vacancies with the sites Ratho Marina Ratho Station £625 £313** £3,750 with most availability having the greatest discount (-25%). Where the Ratho Linear Ratho Station £625 £250 £3,000 site was full we reflected its popularity with a 10% addition. These Leamington Edinburgh £975 £390 £4,680 adjustments produced the following notional rates: Lochrin Edinburgh £975 £390 £4,680

*pcm – per calendar month

** rate calculated using 50%

We have a degree of confidence that the quoting rents for the 2-bed flats are the achieved rents, as unlike the purchase market, quoting

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Scottish Canals 7. Residential Moorings

Table 7.3.3: Adjusted Mooring Rates letting of 31 LOW moorings over the past 12 months or so, listed at Table 7.3.4. This represents almost a third of the total number of LOW Notional Facilities Demand Adjusted Notional Mooring Site moorings and we are of the opinion that this evidence cannot be Rate pa Adjustment Adjustment Rate pa disregarded entirely and provides a good indication of where market Muirtown £3,750 -10.0% 10.0% £3,713 rents are for each location particularly where there is a volume of Dochgarroch £2,640 -18.0% 10.0% £2,381 transactions at a similar level in one location. Gairlochy £3,000 -20.0% 0.0% £2,400 Ardrishaig £2,160 -10.0% 0.0% £1,944 Table 7.3.4: Recent Residential Mooring Lettings

Cairnbaan £2,160 -16.0% 0.0% £1,814 Canal Site Rate pa Date Comments Bowling £2,760 -8.0% -15.0% £2,158 Bowling – Caledonian Muirtown £3,500 Jun 16 3 year agreement Lower Basin / £3,450 -8.0% -15% £2,698 Caledonian Muirtown £3,500 May 16 3 year agreement Harbour Caledonian Muirtown £3,500 Oct 15 3 year agreement Applecross £3,048 -11.0% -25.0% £2,035 Caledonian Muirtown £3,500 Sep 15 3 year agreement Caledonian Muirtown £2,800 Aug 15 3 year agreement Speirs Wharf £3,048 -23.0% -10.0% £2,112 Caledonian Muirtown £2,800 Jun 15 3 year agreement Southbank £3,120 -11.0% -25.0% £2,083 Caledonian Muirtown £2,800 Jun 15 3 year agreement Cadder £2,760 -21.0% -25.0% £1,635 Caledonian Muirtown £2,800 Jun 15 3 year agreement Auchinstarry £2,850 -7.0% -10.0% £2,385 Caledonian Muirtown £2,800 May 15 3 year agreement Kelpies £2,280 -12.0% 0.0% £2,006 Marina Forth & Clyde Applecross £1,750 Aug 16 3 year agreement Linlithgow £3,240 -22.0% 10.0% £2,780 Forth & Clyde Applecross £1,500 Jun 16 3 year agreement Cause’end £3,240 -24.0% 10.0% £2,709 Forth & Clyde Applecross £1,750 May 16 1 year agreement Ratho Marina £3,750 -12.0% 10.0% £3,630 Ratho Linear £3,000 -13.0% 10.0% £2,871 Forth & Clyde Bowling £2,500 Apr 16 3 year agreement Leamington £4,680 -10.0% 10.0% £4,633 Helenslea Forth & Clyde Bowling Lochrin £4,680 -10.0% 10.0% £4,633 £2,500 Feb 16 3 year agreement Helenslea Forth & Clyde Bowling £2,500 Oct 15 1 year agreement In round terms, these calculations produce a range of notional rates pa Helenslea from £1,600 at Cadder Basin to £4,600 at Lochrin Basin. Forth & Clyde Bowling £2,500 Jun 15 3 year agreement Helenslea In addition to the above exercise we have also considered the Forth & Clyde Southbank £1,800 Oct 15 1 year agreement substantial body of evidence from new transactions involving the

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Canal Site Rate pa Date Comments In arriving at our opinion of fair and reasonable market rates we have Forth & Clyde Auchinstarry £2,500 May 16 3 year agreement had regard to the following:

Union Kelpies Marina £1,500 tbc Pending Our range of adjusted residential linked rates

Union Causewayend £3,000 Mar 16 3 year agreement Recent mooring letting evidence at each location Union Causewayend £3,000 Jul 15 3 year agreement As a sense check, the relativities between locations Union Linlithgow East £3,000 Sep15 3 year agreement Table 7.3.5: Our opinion of fair and reasonable Mooring Rates Union Linlithgow East £3,000 May 15 3 year agreement

Opinion of fair and reasonable Union Ratho Marina £3,625 Jun 16 3 year agreement Mooring Site Union Ratho Marina £3,500 Jan 16 3 year agreement Rate per berth pa (incl VAT) Union Ratho Marina £3,500 Jan 16 3 year agreement Muirtown £3,500 Union Ratho Marina £4,000 Jun 15 3 year agreement Dochgarroch £2,400 Gairlochy £2,400 3 year agreement. Ardrishaig £1,950 Union Leamington £4,500 Jun 16 Long pontoon with Cairnbaan £1,800 storage. 3 year agreement. Bowling £2,150 Union Leamington £4,000 Jun 15 Long pontoon. Applecross £2,000 Speirs Wharf £2,100 3 year agreement. Southbank £2,100 Union Lochrin £360 Jun 16 The rate is per linear Cadder £1,600 metre. Auchinstarry £2,400 3 year agreement. Kelpies Marina £2,000 Union Lochrin £333 Apr 16 The rate is per linear Linlithgow £2,800 metre. The rate is per linear Causewayend £2,700 Union Lochrin £333 May 16 metre. Ratho Marina £3,600 All figures are inclusive of VAT but exclusive of the Navigation Licence. Ratho Linear £2,900 Source: Scottish Canals Leamington £4,500 (West) / £4,000 (East) Lochrin* £342 per linear meter Average £2,705

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*We understand that Lochrin will continue to be charged on linear marketplace and then adjusting to reflect site specific price influencing meter basis, as per the recent lettings, given that all the moorings here factors underpins the mooring charges that we propose. are capable of accommodating broad beam boats. 7.4 Licences and Review of Rents We have provided a single mooring rate per location for a standard mooring but within certain locations, in particular Leamington, there At present the LOW licences are either for a period of 1 year or 3 years may be specific factors (i.e. storage and length of pontoon) affecting and upon renewal the rent is reviewed to the higher of the passing rent value that should be taken into account to arrive at either an or the rent at which the mooring might reasonably be expected to be enhanced or a discounted charge, as appropriate. In the case of let in the open market with reference to comparable market rates Leamington, we suggest a discount is appropriate for the eastern most achieved in that area. This approach has not proven popular as at moorings to account for the disadvantages associated with the some locations it has resulted in large increases given the evolving overhanging apartments. From the evidence presented to us we nature of the market and the increasing popularity of residential understand that all the western moorings have storage huts associated moorings. This creates uncertainty for the boaters and requires a with these moorings which is another reason for this location to be potentially drawn out rent review process to be undertaken by Scottish charged a higher rate. Canals, costing time and money.

There may also be certain occasions at a location where a mooring is We understand that it is the intention of Scottish Canals for all significantly superior to others, i.e. an attractive view, which the other residential licences to be drawn on similar terms to those agreed with moorings do not benefit from, or a boater leases a storage hut. We the LOW customers and it is therefore important that all boaters are feel that it is reasonable for Scottish Canals to apply an additional consulted on the form of these agreements and how rents will be charge or premium, where applicable, on a case by case basis. reviewed.

We are of the opinion that the boaters should be consulted on what It should also be noted that the above proposed mooring rates are for they consider the best approach to reviewing rents is, and the following standard sized boats. Should a non-standard sized boat occupy a options should be considered: mooring, we suggest that Scottish Canals are reserved the right to consider these cases individually and price accordingly on a case by Points for Consultation case basis.

Rents are reviewed periodically (either annually or 3 yearly) to It can be seen that the figures in the table above tend to support the the higher of the passing rent or the rent at which the mooring mooring rates being achieved and we are of the opinion that our might reasonably be expected to be let in the open market methodology of benchmarking to the local relevant residential with reference to comparable market rates achieved in that area.

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Review rents periodically in line with an average of recent deals protection against significant short term price hikes to the boaters and completed at each location by Scottish Canals. some degree of certainty to both parties. Review rents in line with movement in house price indices as published by Registers of Scotland. Local indices can be It would remain necessary for Scottish Canals to actively market the created using house price data. remaining vacant moorings in order to continue to generate income to Periodically review the exercise that we have undertaken and invest in the canal network. They should endeavour to secure the best review the residential letting market and update the prices figure that the market is prepared to pay for any vacant moorings and accordingly. any that become vacant. We would recommend the ‘best rent’ is Increase rents in line with RPI. obtained by way of either a best bids approach or by setting a price Increase rents in line with RPI, subject to a minimum and based on our opinion of market value above. These new transactions maximum increase of 2% and 5%. would not impact upon existing residents, whose rents would effectively be ‘locked down’ from day one of their licence, subject to the collared We recommend that the position is simplified and that annual licences and capped RPI rent review provisions. are agreed between Scottish Canals and their residential customers. These licences will automatically renew each year provided that the Cognisance is required by the boaters of the reasonable standpoint terms of the “Long Term Licence Moorings Booklet” have been that capital investment (over and above maintenance) cannot be adhered to, a notice of termination has not been issued by the advanced without increased return to Scottish Canals. As a result, any licensee and the rent is increased in line with movement in the Retail proposed expenditure / investment at a particular location should be Price Index over the previous 12 month period. We are of the opinion presented to the boaters prior to implementation explaining any that this approach would provide boaters with more certainty and requirement for an above inflation increase. should also reduce the time spent on administration by Scottish Canals. These new licences would be phased in on the expiry of any existing 7.5 The Way Forward agreements. In the case of the older style residential agreements, we understand In periods of low inflation, as is the case at present, it will be difficult to that all lettings will be transferred to new licences and rents will be set maintain growth in income in line with the real growth in costs that as per our proposed figures above. Where this results in a significant outstrip low average price increases. We would therefore propose a increase in the rent being paid we would recommend that the minimum increase at, say 2% pa, which would equate to an increase of increase is phased in over a three to five period. The additional £50 pa when considering a mooring rate of say £2,500 pa. At the same increase would be over and above the proposed annual rental time we recognise that this presents boaters with significant risk of increase in line with RPI collared at 2% and capped at 5% to ensure the substantial increases during inflationary periods and we would rent is in line with the current market rent. therefore propose to cap any increase in rent at 5% pa thus providing

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With regards to the LOW licences, which have been negotiated and phased in over an agreed period, and if so over what time agreed between the parties in the past 3 to 4 years, adoption of our period? proposed rates results will result in instances where some boaters are facing an increase in their rent and others a decrease. It is clearly If adoption of the proposed rates results in a decrease in rent important that all parties are consulted in order to establish what the to be paid for a mooring, should this decrease take place preferred approach to adoption of the proposed rents is. It is also immediately upon commencement of a new licence or be important to make this process as simple as possible. phased in over an agreed period, and if so over what time period? Our suggestions is that the proposed mooring rates listed above are adopted for all LOW licences and thereafter reviewed periodically in line with the outcome of the rent review consultation above.

As with the older agreements above, where a new rate results in a significant increase then this can either be immediately adopted or phased in over an agreed period. We would recommend that this increase is phased in over a three to five period. The additional increase would be over and above the proposed annual rental increase in line with RPI collared at 2% and capped at 5%.

Where the rent adopted decreases this can either take effect immediately upon commencement of a new licence or be phased in over an agreed period. Clearly the two sides will have a different view on this point but we would suggest that where the rent has decreased this should take effect from the start of a new licence.

Again we would recommend that boaters are consulted on this matter and would suggest the following points be considered:

Points for Consultation

If adoption of the proposed rates results in an increase in the rent to be paid for a mooring, should this increase be paid immediately upon commencement of a new licence or be

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8. LEISURE MOORINGS Table 8.2.1: Comparator Leisure Mooring Pricing – 2016/17 Scottish Canals Annual Rate (2016/2017, Nearby Competition 8.1 Background Location per metre) Again there is a substantial Crinan Ardfern £330.00 body of evidence Croabh £320.00 Dunstaffnage £355.00 produced by lettings on Ardrishaig Tarbert £195.50* the canals, although a Portavadie £259.15 significant amount of the Bowling Rothesay £232.50 activity appears to be on James Watt Dock £351.90** the Crinan and Caledonian Largs £336.00-425.00*** Kip £405.00 Canals. Once more there Holy Loch £328.48 is a slight ‘disharmonisation’ Rhu £370.00 of rates charged as a result Grangemouth Port Edgar £295.80 of rates proposed by the North Berwick £45.00 Dunbar £495.26 Blue Sea Consulting (BSC) Anstruther £78.65**** review being implemented for new lettings at some locations, while Seaport Caley Marina £175.00 rates for existing customers increase at a different rate. Inverness Marina £205.00 Nairn ***** 8.2 Comparator Pricing Banff £116.00 Corpach Fort William Marina (Loch ****** Linnhe) From our research it is apparent that the charges levied within the Source: Bilfinger GVA / Gerald Eve coastal locations are sensitive to those being charged by other nearby marinas. Table 8.2.1 highlights the current annual rate at marinas * c.5% discount for ‘locals’ located close to the Scottish Canals network, including both public ** 20% discount on published rate is offered to reflect ongoing works at Dock. Fee reduced to £306.00 accordingly and private marinas. This follows more extensive comparator pricing *** Charged at £336.00 per metre for vessels measuring 6.1-7.0m, £417.00 per metre undertaken by BSC (which included English and overseas pricing). We for vessels measuring 7.1—12.1m and £425 per metre for vessels measuring 12.2m+. have felt that it is more pertinent to this Review to focus on the Scottish There is a flat rate of £1,313 for vessels up to 6m. comparables, however details of the additional pricing research are **** 2014/15 pricing included in the BSC report (included as a separate Appendix). ***** not charged per metre – scale of £243 (vessels up to 5m) to £1,393 (13.01-14m) and £67.00 per metre for vessels 14m and above ****** swing moorings, not charged per metre - £750 for summer

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Our research, along with that undertaken by BSC, highlights that Annual Rate berthing prices vary considerably across the locations (similar to Scottish Canals Nearby Annual Rate % (2016/2017, per Location competition 2013/14 Difference Scottish Canals’ network). Consistencies in pricing are most likely to be metre) found in established markets with higher berthing occupancies (such as James Watt the Firth of Clyde) and are typically operated by commercial entities. £306.00 £287.50 6% Dock

8.3 Pricing Changes Largs £425.00 £380.00 12%

Kip £415.00 £399.00 4% We have compared the comparator marina pricing levels detailed in the BSC report (2013), with the latest (2016) levels to identify any trends Holy Loch £366.57 £366.57 0% in pricing. Rhu £370.00 £347.00 7%

The analysis showed a wide variance in rates over the period. While Grangemouth Port Edgar £295.80 £236.80 25% some marinas have significantly increased mooring fees, including North Berwick £45.00 £41.40 9% Anstruther (+42%) and Port Edgar (+25%), most have generally Anstruther £78.65 £55.23 42% witnessed marginal increases, with the exception of Portavadie (-15%). The net variance in the change of rates was only +4%. The huge Seaport Caley Marina £175.00 N/A variance in rates charged suggest that other mitigating factors, such as Inverness £205.00 £175.00 17% occupancy and demand, impact on the prices set by the different Marina marinas. Lossiemouth £168.00 £158.40 6%

Table 8.3.1: Comparator Marinas - Price Change 2013-16

Annual Rate By comparison, with the exception of Crinan Canal (which has had a Scottish Canals Nearby Annual Rate % (2016/2017, per steady 10% increase between 2013 and current rates) there is a large Location competition 2013/14 Difference metre) variance in Scottish Canals’ mooring pricing over the same period. Prices on the Caledonian Canal vary from a 16% rise since 2013 Crinan Ardfern £330.00 £330.00 0% (Laggan Avenue) to a 50% increase (Fort Augustus). However, the Croabh £320.00 N/A greatest variance can be seen on the Lowlands Canals. With the Dunstaffnage £355.00 £339.00 5% exception of Southbank Marina, which has remained at £100.00 per

Ardrishaig Tarbert £195.50 £175.57 11% metre, all other mooring fees have risen, some more than 70%, although some of these have come from a relatively low base. We Portavadie £284.70 £335.00 -15% highlight the pricing change on all four canals in the following tables. Bowling Rothesay £232.50 £232.50 0%

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Table 8.3.2: Caledonian Canal – Mooring Price Change 2013-16 Table 8.3.4: Lowland Canals – Mooring Price Change 2013-16

Scottish Canals Scottish Canals Location 2013 Rate Current Rate* Difference 2013 Rate Current Rate* % diff of 2015 and market Location

Banavie £129.50 £169.00 31% Forth and Clyde Corpach £143.00 £177.00 24% Auchinstarry £73.00 £128.00 75% Corpach Reach £129.50 £156.00 20% Bowling Lower £139.00 £213.50 54% Dochgarroch East £130.00 £166.00 28% Bowling Upper £101.50 £187.50 85% Dochgarroch West £142.50 £183.00 28% Bowling Helenslea £139.00 £157.50 13% Fort Augustus £121.50 £182.00 50% Cadder N/A £100.00 - Gairlochy £106.00 £156.00 47% £37.50 £73.50 96% Kytra £102.00 £136.00 33% Camelon Lock 16 Laggan Avenue £94.64 £109.50 16% Grangemouth - Serviced £65.00 £123.00 89% Laggan Top £109.00 £155.50 43% Grangemouth - Unserviced £65.00 £74.00 14% Seaport Marina £147.00 £175.00 19% The Falkirk Wheel Basin £84.50 £127.00 50% *These rates are illustrative only and are indicative of the highest of all fees payable The Falkirk Wheel Linear £55.00 £107.00 95% at each location. Southbank Marina £100.00 £100.00 0% Table 8.3.3: Crinan Canal – Mooring Price Change 2013-16 2013 Current difference Union Scottish Canals Location Rate Rate* 2013-2016 Edinburgh Lochrin Basin £121.50 £173.50 43% Ardrishaig Basin £136.00 £150.00 10% Ratho Marina N/A £199.50 - Ardrishaig Dummy Lock £161.00 £177.50 10% Ratho Linear £61.00 £145.00 138% £115.00 £127.00 10% Bellanoch Bridge Causewayend N/A £145.00 - £156.00 £172.00 10% Bellanoch Marina *These rates are illustrative only and are indicative of the highest of all fees payable Bellanoch marina Swinging moorings £115.00 £127.00 10% at each location. Cairnbaan Lock 5 £121.00 £133.50 10% £140.50 £155.00 10% Crinan Basin We have held discussions with Highland Harbours, who cover the Crinan Basin Dummy Lock £161.00 £177.50 10% Highland Council area who have informed us that price increases in Crinan Rings £110.00 £121.50 10% recent years have been between 2 and 4%, but as Highland Council Lock 14 Crinan £139.50 £154.00 10% has funding issues, they are therefore increasing their charges by 10% Lock 4 Top £119.50 £131.50 10% this year. Oakfield Bridge £115.00 £127.00 10% *These rates are illustrative only and are indicative of the highest of all fees payable at each location.

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8.4 Pricing Matrix We have set a ‘standard’ marina charge applicable to each location. These standard charges represent what a full service marina, with high The research undertaken in this section and the preceding sections of berthing occupancy in each of these locations could achieve. We this report has led us to believe the fairest approach for Scottish Canals have subsequently discounted rates for each mooring based on the to set pricing moving forward is to implement a pricing matrix for leisure criteria (location/facilities) which it falls under. The matrixes for each moorings. location are shown overleaf. Full details of each category is described in Section 5.3 of the BSC report is included as an appendix. This approach was first advanced and outlined by BSC in 2014. We have subsequently tried alternative methods of setting a fair and reasonable rate, but believe that their approach is the only way of setting a charging structure for Scottish Canals, largely due to the lack of direct competitor moorings (although the comparable marinas in Table 8.2.1 have had an influence).

We have adopted the BSC matrix, but adjusted these based on our research of comparator marina in each location and following our facilities audit described in Section 5.

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Table 8.4.1: Caledonian Canal: Pricing Matrix

Urban & Coastal £300 Rural Inland £280 LOCATION ATTRACTIVE TOWN TOWN WITHIN WALKING PRICING MATRIX (per m) CENTRE ISOLATED CENTRE WALKING ATTRACTIVE DISTANCE RURAL LOCATION BUT DISADVANTAGED ATTRACTIVE LOCATION DIST OF VILLAGE TO BUSY DISADVANTAGED – up to 45 ATTRACTIVE LOCATION RURAL –Direct TOWN LOCATION VILLAGE LOCATION mins to LOCATION Access to (1,000m) FACILITIES Sea the Sea

FACILITY A B C D E R A R B R C R D R E

MARINA - FULL FACILITY £ £ £ £ £ £ £ £ - FULL SERVICE WITH 1 £ - £ - 300.00 247.50 240.00 225.00 280.00 224.00 196.00 168.00 BOATYARD MARINA - FULL FACILITY £ £ £ £ £ £ £ £ 2 £ - £ - - FULL SERVICE 255.00 210.00 210.00 195.00 252.00 238.00 182.00 154.00

BASIC MARINA £ £ £ £ £ £ £ £ 3 £ - £ - Marina→ B BERTHING FACILITY 225.00 195.00 172.50 165.00 210.00 196.00 168.00 133.00 BERTHING BASIN/ £ £ £ £ £ £ £ £ LIMITED OR OLD 4 £ 105.00 £ 98.00 210.00 180.00 150.00 142.50 189.00 175.00 161.00 126.00 PONTOONS

ankside BANKSIDE POWER, £ £ £ £ £ £ £ £ WATER AND TOILET/ 5 £ 90.00 £ 84.00 180.00 150.00 120.00 105.00 182.00 168.00 154.00 124.60 SHOWER

BANKSIDE POWER AND £ £ £ £ £ £ £ £ 6 £ 90.00 £ 70.00 WATER 150.00 120.00 105.00 97.50 168.00 161.00 126.00 121.80

BANKSIDE NO SERVICES £ £ £ £ £ £ £ £ 7 £ 75.00 £ 56.00 / WITH JETTY 135.00 105.00 90.00 82.50 154.00 151.20 119.00 112.00

£ £ £ £ £ £ £ £ BANKSIDE NO SERVICES 8 £ 60.00 £ 42.00 90.00 75.00 75.00 67.50 133.00 133.00 98.00 105.00 Source: Bilfinger GVA / Gerald Eve *Note – We believe that £300 is the maximum that any full service marina could charge at either end of the canal, given North East rates (Seaport) and cruising distances (Corpach) **Note – We have provided a discounted Inland rate, giving consideration to lower rates that can be achieved by inland moorings

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Table 8.4.2: Crinan Canal (Coastal): Pricing Matrix

Crinan Coastal £330 LOCATION

ATTRACTIVE PRICING MATRIX (per m) TOWN CENTRE TOWN CENTRE WITHIN WALKING ISOLATED BUT DISADVANTAGED LOCATION – LOCATION – up DIST OF TOWN ATTRACTIVE LOCATION Direct Access to to 45 mins to Sea (1,000m) LOCATION the Sea

FACILITY A B C D E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £ 330.00 £ 272.25 £ 264.00 £ 247.50 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £ 280.50 £ 231.00 £ 231.00 £ 214.50 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £ 247.50 £ 214.50 £ 189.75 £ 181.50 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 231.00 £ 198.00 £ 165.00 £ 156.75 £ 115.50

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £ 198.00 £ 165.00 £ 132.00 £ 115.50 £ 99.00

BANKSIDE POWER AND WATER 6 £ 165.00 £ 132.00 £ 115.50 £ 107.25 £ 99.00

BANKSIDE NO SERVICES / WITH JETTY 7 £ 148.50 £ 115.50 £ 99.00 £ 90.75 £ 82.50

BANKSIDE NO SERVICES 8 £ 99.00 £ 82.50 £ 82.50 £ 74.25 £ 66.00

Source: Bilfinger GVA / Gerald Eve *Note – We believe that £330 is the maximum that any full service marina could charge at the western end of the canal, giving consideration to comparator marinas on the West Coast

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Table 8.4.3: Crinan Canal (Inland): Pricing Matrix

Crinan Inland £270* LOCATION

PRICING MATRIX (per m) WALKING ATTRACTIVE DISTANCE TO ATTRACTIVE RURAL BUSY VILLAGE DISADVANTAGED VILLAGE RURAL LOCATION LOCATION FACILITIES

FACILITY R A R B R C R D R E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £270.00 £216.00 £189.00 £162.00 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £243.00 £229.50 £175.50 £148.50 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £202.50 £183.60 £162.00 £128.25 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £189.00 £175.50 £143.10 £121.50 £94.50

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £175.50 £172.80 £140.40 £120.15 £81.00

BANKSIDE POWER AND WATER 6 £151.20 £148.50 £135.00 £114.75 £67.50

BANKSIDE NO SERVICES / WITH JETTY 7 £145.80 £145.80 £128.25 £108.00 £54.00

BANKSIDE NO SERVICES 8 £128.25 £128.25 £121.50 £101.25 £40.50

Source: Bilfinger GVA / Gerald Eve *Note – We have provided a discounted Inland rate, giving consideration to lower rates that can be achieved by inland moorings

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Table 8.4.4: Crinan Canal (Ardrisaig): Pricing Matrix

Ardrisaig Coastal £300 LOCATION

ATTRACTIVE PRICING MATRIX (per m) TOWN CENTRE TOWN CENTRE WITHIN WALKING ISOLATED BUT DISADVANTAGED LOCATION – LOCATION – up DIST OF TOWN ATTRACTIVE LOCATION Direct Access to to 45 mins to Sea (1,000m) LOCATION the Sea

FACILITY A B C D E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £ 300.00 £ 247.50 £ 240.00 £ 225.00 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £ 255.00 £ 210.00 £ 210.00 £ 195.00 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £ 225.00 £ 195.00 £ 180.00 £ 165.00 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 210.00 £ 180.00 £ 150.00 £ 142.50 £ 105.00

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £ 180.00 £ 150.00 £ 120.00 £ 105.00 £ 90.00

BANKSIDE POWER AND WATER 6 £ 150.00 £ 120.00 £ 105.00 £ 97.50 £ 90.00

BANKSIDE NO SERVICES / WITH JETTY 7 £ 135.00 £ 105.00 £ 90.00 £ 82.50 £ 75.00

BANKSIDE NO SERVICES 8 £ 90.00 £ 75.00 £ 75.00 £ 67.50 £ 60.00

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Table 8.4.5: Forth and Clyde Canal: Pricing Matrix (excluding Bowling)

LOCATION £225 LOCATION

PRICING MATRIX (per m) Coastal <45 TOWN / VILLAGE RURAL RURAL CITY LOCATION minutes LOCATION ATTRACTIVE UNATTRACTIVE

FACILITY A B C D E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £ 225.00 £ 202.50 £ 180.00 £ 168.75 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £ 202.50 £ 180.00 £ 168.75 £ 146.25 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £ 180.00 £ 157.50 £ 146.25 £ 129.38 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 157.50 £ 146.25 £ 135.00 £ 118.13 £ 101.25

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £ 146.25 £ 135.00 £ 123.75 £ 106.88 £ 90.00

BANKSIDE POWER AND WATER 6 £ 135.00 £ 112.50 £ 101.25 £ 90.00 £ 67.50

BANKSIDE NO SERVICES / WITH JETTY 7 £ 112.50 £ 90.00 £ 78.75 £ 73.13 £ 56.25

BANKSIDE NO SERVICES 8 £ 90.00 £ 67.50 £ 56.25 £ 45.00 £ 33.75

Source: Bilfinger GVA / Gerald Eve * Note – We believe that the maximum a full service marina on the Forth and Clyde canals (excluding Bowling) would be able to charge would be £225. There are no direct comparators that can be used to reference, however we believe £225 to be a robust figure

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Table 8.4.6: Bowling: Pricing Matrix

LOCATION £275 LOCATION

PRICING MATRIX (per m) Coastal <45 TOWN / VILLAGE RURAL RURAL CITY LOCATION minutes LOCATION ATTRACTIVE UNATTRACTIVE

FACILITY A B C D E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £ 275.00 £ 247.50 £ 220.00 £ 206.25 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £ 247.50 £ 220.00 £ 206.25 £ 192.50 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £ 220.00 £ 192.50 £ 178.75 £ 165.00 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 192.50 £ 178.75 £ 165.00 £ 151.25 £ 123.75

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £ 178.75 £ 165.00 £ 151.25 £ 137.50 £ 110.00

BANKSIDE POWER AND WATER 6 £ 165.00 £ 137.50 £ 123.75 £ 110.00 £ 82.50

BANKSIDE NO SERVICES / WITH JETTY 7 £ 137.50 £ 110.00 £ 96.25 £ 89.38 £ 68.75

BANKSIDE NO SERVICES 8 £ 110.00 £ 82.50 £ 68.75 £ 55.00 £ 41.25

Source: Bilfinger GVA / Gerald Eve * Note - We believe that due to its proximity to the popular sailing waters of the Firth of Clyde, moorings at Bowling can support a higher rate than the rest of the Lowlands, however giving consideration to access, the standard rate should be less than that achieved by other full service marinas in the area

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Scottish Canals 8. Leisure Moorings

Table 8.4.7: Union Canal: Pricing Matrix

LOCATION £260 LOCATION

PRICING MATRIX (per m) Coastal <45 TOWN / VILLAGE RURAL RURAL CITY LOCATION minutes LOCATION ATTRACTIVE UNATTRACTIVE

FACILITY A B C D E

MARINA - FULL FACILITY - FULL SERVICE WITH 1 £ 260.00 £ 234.00 £ 208.00 £ 195.00 £ - BOATYARD

MARINA - FULL FACILITY - FULL SERVICE 2 £ 234.00 £ 208.00 £ 195.00 £ 182.00 £ -

Marina→ Bankside BASIC MARINA BERTHING FACILITY 3 £ 208.00 £ 195.00 £ 182.00 £ 156.00 £ -

BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 182.00 £ 169.00 £ 156.00 £ 143.00 £ 117.00

BANKSIDE POWER, WATER AND TOILET/ SHOWER 5 £ 169.00 £ 156.00 £ 143.00 £ 130.00 £ 104.00

BANKSIDE POWER AND WATER 6 £ 156.00 £ 143.00 £ 130.00 £ 117.00 £ 78.00

BANKSIDE NO SERVICES / WITH JETTY 7 £ 130.00 £ 104.00 £ 91.00 £ 84.50 £ 65.00

BANKSIDE NO SERVICES 8 £ 104.00 £ 78.00 £ 65.00 £ 52.00 £ 39.00

Source: Bilfinger GVA / Gerald Eve * Note – We believe that a marina with full facilities on the Union Canal would be able to achieve a higher rate than one the Forth and Clyde canal and have set a standard rate of £260. There are no direct comparators that can be used to reference, however we believe £260 to be a robust figure

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Scottish Canals 8. Leisure Moorings

The following tables highlight our categorisation of each mooring and Table 8.4.9: Crinan Canal: Pricing Matrix the resulting price, measured against the current, published rates for % Change new customers. GVA / GE Current GVA / GE Current Rates Crinan Canal Suggested Rates* Rating / Suggested Price We are aware that boaters have negotiated individual fees and Rates therefore the percentage differences between what they currently Crinan Basin £155.00 D4 £156.75 1.1% pay and our suggested prices will vary from those detailed below. Crinan Basin Dummy £177.50 D3 £181.50 2.3% Lock With a few exceptions, the majority of prices generally fall within a 10% Lock 14 Crinan £154.00 D4 £156.75 1.8% increase or decrease of the current rates, suggesting that the Crinan Rings £121.50 RC8 £121.50 0.0% published leisure mooring prices set on the Scottish Canals network are Bellanoch Marina £172.00 RB3 £183.60 6.7% Bellanoch Marina generally within broadly acceptable parameters. £127.00 RB8 £128.25 1.0% Swinging moorings Table 8.4.8: Caledonian Canal: Pricing Matrix Bellanoch Bridge £127.00 RC6 £135.00 6.3% Cairnbaan Lock 5 £133.50 RC4 £143.10 7.2% % Change GVA / GE Oakfield Bridge £127.00 RB6 £135.00 6.3% Current GVA / GE Current Rates Caledonian Canal Suggested Rates* Rating / Suggested Lock 4 Top £131.50 RB7 £135.00 2.7% Price Rates Ardrishaig Basin £150.00 C4 £150.00 0.0% Corpach - Basin £177.00 A5 £180.00 1.7% Ardrishaig Dummy £177.50 C3 £180.00 1.4% Corpach - Reach £156.00 RB6 £161.00 3.2% Lock Source: Bilfinger GVA / Gerald Eve / Scottish Canals Banavie £169.00 RB4 £175.00 3.6% *These rates are illustrative only and are indicative of the highest of all fees payable Fort Augustus £182.00 RA4 £189.00 3.8% at each location. Gairlochy £156.00 RC5 £154.00 -1.3%

Kytra £136.00 RC7 £119.00 -12.5% Table 8.4.10: Union Canal: Pricing Matrix Laggan Avenue £109.50 RC7 £119.00 8.7%

Laggan Top £155.50 RC5 £154.00 -1.0% % Change GVA / GE Current GVA / GE Current Rates Dochgarroch East £166.00 RB5 £168.00 1.2% Union Canal Suggested Rates Rating / Suggested Price Dochgarroch West £183.00 A5 £180.00 -1.6% Rates Seaport Marina £186.00 B3 £195.00 4.8% Causeway End £145.00 D4 £143.00 -1.4% Source: Bilfinger GVA / Gerald Eve / Scottish Canals Ratho Marina £199.50 C3 £182.00 -8.8% *These rates are illustrative only and are indicative of the highest of all fees payable Ratho Linear £145.00 C5 £143.00 -1.4% at each location. Source: Bilfinger GVA / Gerald Eve / Scottish Canals

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Scottish Canals 8. Leisure Moorings

*These rates are illustrative only and are indicative of the highest of all fees payable an ‘average marina’, making benchmarking of marina pricing at each location. extremely difficult (a view also highlighted at the public meetings). They noted the variance of pricing achieved across England, noting Table 8.4.11: Forth & Clyde Canal: Pricing Matrix that it is difficult to compare mooring fees across England, let alone comparing ‘cross-border’.

GVA / GVA / GE % Change Current Current Forth & Clyde GE Suggested Rates / Suggested This has led us to the development of the pricing matrix detailed in the Rates* Rating Price Rates previous section. To our knowledge, this approach to setting mooring Bowling Lower £213.50 A3 £220.00 3.0% rates has not been implemented in any waterway network. Bowling Upper £187.50 A4 £192.50 2.7% While we acknowledge that there is a strong element of subjectivity to Bowling Helenslea £157.50 C3 £178.75 13.5% preparing such a matrix, we would promote it as the most equitable Cadder £100.00 C6 £101.25 1.3% available method of setting a pricing approach. Furthermore the Southbank Marina £100.00 C3 £146.25 46.3% approach of the matrix allows for it to be fine-tuned and ‘tweaked’ Auchinstarry £128.00 D3 £129.38 1.1% The Falkirk Wheel depending on feedback or changes to any of the criteria listed, as well £127.00 D3 £129.38 1.9% Basin as feedback from boaters at the consultation stage. The Falkirk Wheel £107.00 D5 £106.88 -0.1% Linear Our recommendation is that the leisure rates should be reviewed on an Camelon Lock 16 £73.50 C7 £78.75 7.1% annual basis, using the pricing matrix approach and a review of pricing Grangemouth £123.00 D3 £129.38 5.2% changes of comparator marinas identified. When an appropriate (Kelpies) Marina market rent is achieved, RPI should be suitable for maintaining the rate, Grangemouth £74.00 D7 £73.13 -1.2% with a full review every 3 or 5 years; this will be sufficient to ensure that Unserviced RPI has kept up with the then appropriate market rent. An ‘aggressive’ Source: Bilfinger GVA / Gerald Eve / Scottish Canals increase could result in a decline in occupancy levels but, similarly, *These rates are illustrative only and are indicative of the highest of all fees payable at consistent occupation over a long period of time might suggest the each location. rate is low. 8.5 Conclusions When there is evidence of significant investment within a marina or location, then it will be appropriate to review the level of price increase Our research, and that undertaken by BSC, highlights a huge variation above RPI. To ensure a clear and transparent process, this should be in pricing across the Scottish Canals’ network and comparator marinas, explained clearly, including details of the cost of investment, to boaters both in Scotland and elsewhere. This is further evidenced by discussions in order to quantify and substantiate any price increase. with British Marine in regards to the UK inland waterway network, who informed us that pricing is market driven and there is no such thing as

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Scottish Canals 8. Leisure Moorings

From discussions with the people dealing with the boaters in Crinan and Caledonian it is apparent that a good deal of work is done to pitch the rates at appropriate levels aimed at maximising income but also to keep the moorings as full as possible. A fair degree of market testing has already been undertaken and market intelligence is being gathered at source.

Whilst we have given consideration to expanding the matrix to include a separate calculation measuring boaters’ satisfaction and demand, we do not believe this is a factor which can be accurately or adequately reflected, and would prove difficult to implement on an equitable basis. Gaining honest satisfaction is difficult to achieve as, by human nature, if customers are aware that giving negative feedback may result in a discount, they may be more inclined to do so. Demand should be measured by occupancy i.e. if a marina is near maximum occupancy, then the proposed mooring rates in Section 8.4 should be used. However, if occupancy rates are lower and Scottish Canals wish to ‘fill’ the marina, then there would be merit in reviewing the rates for the forthcoming year and offering an appropriate discount.

July 2016 49 Moorings Pricing Review

Scottish Canals 9. Transit Charges and Navigational Licences

9. TRANSIT CHARGES AND NAVIGATIONAL LICENSES

9.1 Scottish Canals Transit Charges

Current and historic transit charges for each canal are shown in the following Table. There was a notable jump in the Crinan transit fee which was due to the implementation of mandatory assisted passage after the majority of boaters surveyed agreed for this to be introduced. This was then reduced in 2016/17 in accordance with its removal. Otherwise prices have increased at a relatively consistent rate.

Table 9.6.1.1: Scottish Canals Transit Fees (Out / Return)

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Caledonian £16.80/£11.10 £17.20/£11.35 £17.20/£13.50 £17.65/£13.85 £18.00/£14.20 £19.80/£15.65 £19.80/£15.65 7 nights Crinan £9.70/£6.40 £9.90/£6.55 £9.90/£7.80 £10.15/£8.00 £10.35/£8.15 £15.95/£12.44 £11.95/£9.32 4 nights Lowlands £5* £5.10* £7.50* 5 nights (10 nights £6.00/£4.00 £6.15/£4.10 £19.80/£15.65 £19.80/£15.65 £15** £15.40** £15.70** from 2016) Additional Day £1.10 £1.15 £1.15 £1.20 £1.25 £1.40 £1.40 Source: Scottish Canals * One member of staff to assist / ** Two members of staff to assist

9.2 Scottish Canals Navigational Licenses

Table 9.2.1 highlights that the Navigational License fee has grown 41.4% over a six year period although remained consistent between 2012 and 2014.

Table 9.2.1: Scottish Canals Navigation License Fee

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

£137.87 £145.00 £145.00 £145.00 £195.00 £195.00 Source: Scottish Canals

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Scottish Canals 9. Transit Charges and Navigational Licences

9.3 Comparator Transit Charges Certificates are required on all UK inland waterways and costs of these vary regionally. We have undertaken research to establish navigational fees at other UK inland waterways. It is worth noting that terminology for a journey Table 9.3.1: Wide Beam Cruiser – UK Inland Waterway Price Differences along the canal or river network varies between each Agency or Trust. 1 3 6 Time Period 1 Day 1 Month 1 Year Mooring Depending on the network it can be referred to as transit fee, toll or Week Months Months license to define a time period on the canal or river network that is not Environment associated with annual leisure, commercial or residential contracts or Agency £1600 ~ £39 £61 £172.50 - - £649.25 licences. (River £2200 Thames) Norfolk £1187 ~ - £50.25 £201.00 - - £391.43 One of the principal differences in fees when contrasting operations Broads £2220 Canal and £930 ~ north and south of the border is the conflicting charging methodology. £18.88 £34.63 £102.37 £205.68 £411.36 £685.60 River Trust £1450 Within the network controlled by the Environment Agency, Norfolk Canal and Broads, and Canal and River Trust Transit Fees are applicable to all River Trust £11.33 £20.78 £61.42 £123.41 £246.82 £411.36 - (Rivers only) vessels in addition to their berthing and Boat Safety Certificate CRT and EA - - - - - £831 - charges. In Scotland, Scottish Canals operate a system similar to those in existence in other European countries where a Transit Licence covers Table 9.3.2: Scottish Transit Licences the transit itself as well as short-term berthing. This difference in charging methodology makes it difficult to accurately compare the Canal Nights Out Return two charging methodologies as costs in Scotland are partly Caledonian 7 Nights £204.53 £161.66 determined by the use of a boat, whereas fees in England are Crinan 4 Nights £123.44 £96.28 determined by the time period the licence is purchased for. Lowlands 10 Nights £204.53 £161.66

Source: Bilfinger GVA / Blue Sea Consulting LLP In order to understand the costs on a comparable basis we have considered the charges applied to a Wide Beam Cruiser (10m) which uses the canal and river network across the UK. Licences for the English 9.4 Comparator Navigational Licenses waterways have been calculated for a range of time periods and the We outline the difference in pricing approach below. mooring charges have been investigated. All three English waterways agencies require a boat to have a permanent berth in order to obtain Norfolk Broads a licence; visitor moorings are often free or relatively inexpensive. The permanent berths are often sold with annual contracts. For the purpose Annual tolls are payable on all vessels kept in the navigation area or of this comparison the cost of an annual berth has been included to adjacent waters for more than 28 days in any tolls year. Charges are show the cost of keeping a boat on these waterways. Boat Safety

July 2016 51 Moorings Pricing Review

Scottish Canals 9. Transit Charges and Navigational Licences based on square metre area and hence go up as the area increases. charges apply to every boat, except certain visiting boats normally The amount by which they increase depends on the different type of used on other waterways and launches registered on or after 1 craft and varies before and after 14m2. For a motor craft, prices range September. All 'full rate' registrations expire on 31 December regardless from £99.32 (5m2 and under) to £248.48 (20m2 and £9.53 per additional of when they start (except for visitors); there is no other ‘pro-rata’ rate square metre). for part of the registration year.

The annual toll applies at any time after 1 April, and a tolls plaque is For launches (any mechanically propelled vessel not being used solely issued that is valid until the end of the following March. There is no as a tug or for the carriage of goods) on the River Thames, registration reduction in price for this. Tolls can be paid over the phone, by post or costs £18.55 per complete square metre (minimum chargeable area of in person. 5m2) and £10 per complete square metre for every additional one over 80m2. Canal and River Trust Developing a Standardised Pricing Approach for Scottish Canals License fees are charged on a 12, 6 and 3 month basis and there are separate charges for use of canals and rivers or for rivers only. If a boat The diverse and contrasting charging methodologies make it is to stay on a Canal & River Trust managed waterway, it will need a challenging to draw meaningful conclusions from the analysis long term boat licence. especially when considered in isolation from leisure berthing charges. Our conversations with representatives of British Marine have further The definition of ‘waterway’ includes the great majority of long term highlighted the lack in standardisation of these charges across the UK mooring sites and marinas, so all boats need a licence whether or not inland waterway network; each network is unique and this explains the they actually go out for a cruise. variation in prices.

If a licence is renewed before it expires, the owner can take We have found no merit in ranking navigational and transit charges by advantage of a 10% discount on the standard fee (‘Prompt Payment distance that boaters travel. This would penalise boaters who decide to Discount’. The normal, undiscounted licence fee applies in all other travel less and would only be applicable to commercial vessels. cases. Prices are a set fee based on the boat’s length (per metre). Costs for canals and river use therefore ranges (before prompt Conversations with a representative of the RYA Scotland highlighted discount) from £510.62 (up to 5.49m) to £1,110.32 (up to 22.49m). the major conflict facing Scottish Canals; the need to balance the maintenance of the canal against achieving the necessary income. Environment Agency They noted the issues in regards to maintenance on the canal (dredging and weeds) and how this is impacting on boaters’ ability to Vessels on the Environment Agency network must pay a registration fee cruise the network. Consequently a large price increase given issues if it is to be used on inland waterways. These must be renewed each with navigation would not be fair to those using it. year for the waterway the boat is used on. ‘Full rate’ registration

July 2016 52 Moorings Pricing Review

Scottish Canals 9. Transit Charges and Navigational Licences

We therefore advocate a similar approach to mooring fees, involving a RPI increase with cap and collar; subject to no evidential worsening in the ability to navigate the canal. Increases over and above this should be subject to change in navigation (e.g. increase and decrease in costs of assisted passage) and any other related navigational costs. Again, any reason for price increases needs to be explained to boaters.

Points for Consultation between Scottish Canals and Boaters

Are all parties agreeable to charges remaining at existing levels with annual increases linked to the RPI, subject to a collar and cap of 2% and 5%?

July 2016 53 Moorings Pricing Review

Scottish Canals Appendices

APPENDICES

Appendix A: Caledonian Canal Facilities Matrix

Site Parking

yard

Pump out/Elsan Laundry Limited Chandlery Boat Nearby shop Nearby pub/restaurant Power Water Toilets Showers Fuel Refuse

Corpach Corpach Reach Banavie Gairlochy 1 Laggan Avenue Laggan Top Kytra Fort Augustus Dochgarroch West 5 Dochgarroch East 5 Seaport Marina/Muirtown 2 3 4 4

Note 1 – Limited power provision. Note 2 – No water available on pontoons 1 or 2. Note 3 – Situated at top of Muirtown Locks presenting accessibility issues during winter canal operating hours. Note 4 – These facilities are available at Caley Marina at the top of the Muirtown Locks. Note 5 – Restaurant without licence.

July 2016 54 Moorings Pricing Review

Scottish Canals Appendices

Appendix B: Crinan Canal Facilities Matrix

Site

Parking

Pump out/Elsan Laundry Limited Chandlery Boatyard Nearby shop Nearby pub/restaurant Power Water Toilets Showers Fuel Refuse Crinan Basin 1 1 2 Crinan Basin Dummy Lock 1 1 2 Lock 14 Crinan 1 1 Crinan Rings Bellanoch Marina 3 Bellanoch Bridge Bellanoch Swing Moorings 3 Cairnbaan Lock 5 Lock 4 Top Oskfield Bridge 4 4 Ardrishaig Dummy Lock Ardrishaig Basin

Note 1 – we understand that there are mixed views regarding the practicality of the toilet block amongst boaters Note 2 - not open at the time of our inspection in April 2016 Note 3 – washing machine in lades toilet Note 4 - Lochgilphead

July 2016 55 Moorings Pricing Review

Scottish Canals Appendices

Appendix C: Forth & Clyde Canal Facilities Matrix

Site

b/restaurant Pump out/Elsan Laundry Parking Chandlery Boatyard Nearby shop Nearby pu Power Water Toilets Showers Fuel Refuse Bowling Lower Bowling Upper Bowling Helenslea Applecross Street Speirs Wharf Cadder Southbank Marina 1 Auchinstarry Falkirk Wheel Grangemouth

Note 1 –Not in marina itself but nearby.

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Scottish Canals Appendices

Appendix D: Union Canal Facilities Matrix

Site

Parking

aundry Pump out/Elsan L Limited Chandlery Boatyard Nearby shop Nearby pub/restaurant Power Water Toilets Showers Fuel Refuse Causewayend 1 Linlithgow Ratho Marina Ratho Linear Harrison Park 2 2 Leamington Lochrin Basin

Note 1 – Nearby restaurant only open at lunchtime. Note 2 – Not to every berth.

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Scottish Canals Appendices

Appendix E: Blue Sea Consulting LLP Leisure Moorings – Pricing Strategy Report, February 2014

July 2016 58 Moorings Pricing Review

Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT

t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Leisure Moorings – Pricing Strategy

February 2014

www.blueseaconsultingllp.com Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Control Sheet

CLIENT: Scottish Canals

PROJECT TITLE: Leisure Moorings

REPORT TITLE: Pricing Strategy

PROJECT REFERENCE: 0107SC

Issue and Approval Schedule:

ISSUE 1 Name Signature Date

Prepared by Craig Latimer (CL) 6/02/2014

Reviewed by Martin Latimer 7/02/2014

Approved by Craig Latimer 7/02/2014

Revision Record:

Issue Date Status Description By Check App

2 08/05/2015 Draft Changes made to pricing matrix CL ML CL

3

2 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Contents

1.0 Executive Summary ...... 5 2.0 Project Brief ...... 7 3.0 Project Background ...... 8 3.1 Caledonian Canal ...... 8 3.2 Crinan Canal ...... 9 3.3 Forth & Clyde Canal ...... 10 3.4 Union Canal ...... 11 3.5 The Nature of Berthing Facilities on the Canals ...... 11 4.0 Pricing ...... 12 4.1 UK Pricing - Coastal Marina Comparisons ...... 13 4.2 Research & Comparable Pricing ...... 14 5.0 Charging Matrix Description ...... 17 5.1 Why use a Charging Matrix? ...... 17 5.2 Defining the Matrix Parameters ...... 18 5.3 The Matrix Parameters - Location ...... 19 5.4 The Matrix Parameters – Facilities ...... 21 6.0 Price Matrix – Proposed Pricing ...... 28 7.1 The Caledonian Canal ...... 30 7.2 The Crinan Canal ...... 30 7.3 The Forth & Clyde Canal ...... 31 7.4 Union Canal ...... 32

3 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

7.0 Implementation ...... 32 7.1 Consultation ...... 32 8.0 Conclusion ...... 33 9.0 Appendices ...... 34

4 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

1.0 Executive Summary

Scottish Canals has instructed Blue Sea Consulting LLP (BSC LLP) to undertake a review of current leisure berthing rates on its canal portfolio with a view to establishing a coherent and sustainable pricing policy for leisure craft.

BSC LLP has created a Charging Matrix based on comparable evidence gathered from relevant sources and market knowledge. The Matrix will permit Scottish Canals to set a strategy for consultation with stakeholders on pricing and berthing provision whilst also aiding decisions on investments, policy and new developments.

The brief considered the following points:

Review marina and mooring detail supplied by Scottish Canals for Leisure Moorings on the; Union, Forth & Clyde, Crinan and Caledonian Canals Undertake market review of relevant mooring and berthing facilities Design and prepare facility scoring matrix Preparation of pricing regime

Scottish Canals manager’s from the Lowland, Crinan and Caledonian canals provided BSC LLP with comprehensive information regarding the current charging rates for leisure craft in addition to their thoughts on the condition and scope for improvement of their facilities. BSC LLP undertook a review of the wider market to establish wider marina pricing practices to support the information provided by Scottish Canals. This information was reviewed and has been referred to when considering the rating of facilities and locations in this report.

It is clear from our review of comparable marinas in Scotland, England, Ireland and selected countries in Europe that berthing prices vary considerably not only at Scottish Canals’ own facilities but in numerous other locations. Consistencies in pricing are most likely to be found in established markets with higher berthing occupancies and usually operated by commercial entities. BSC LLP found significant inconsistencies in pricing and the provision of facilities most prevalent in under-developed markets, particularly inland locations where the ‘offer’ varied considerably and also in trust and public sector operated facilities.

Blue Sea Consulting consider that Scottish Canals has a high quality offer in terms of service and in most instances the current facilities meet with the approval of customers. The network offers some of the most scenic and appealing locations in the UK and the variety along the relatively short 135 miles of navigable canals gives users the opportunity to experience a wide range of activities, history, heritage, flora and fauna. For this reason Scotland’s canals offer some unique opportunities.

The nature of Scottish Canals berthing facilities is diverse and the report highlights that the network appears to have evolved over time rather than being developed through a strategic plan from the outset. As a result some locations do not meet market demand in terms of facilities and service. Through our research for this report and as highlighted by the information provided by Scottish Canals, in a number of areas demand outstrips supply.

5 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

It is clear that there are opportunities to increase leisure berthing facilities or improve/expand existing moorings or marinas; however, BSC LLP is concerned that under the current pricing regime this would not represent the best investment for Scottish Canals. The Charging Matrix (and the tables in the report) set out to illustrate where Scottish Canals current berthing provision sits in the market and where it should be positioned in order to be a sustainable proposition.

It is not practical within the scope of this report to detail the pros and cons of every mooring facility. However, in arriving at the Charging Matrix, BSC LLP has carried out an overview of each facility and location. The information gathered from this has influenced the production of The Matrix.

If investment in marinas and moorings on the Canals is to be increased to meet demand it stands to reason that it must be financially sustainable to justify investment by Scottish Canals and encourage private sector investment.

The standard charge in the Matrix has been set at £350 per m, being the rounded average of the leisure mooring rates (per metre annual single payment rate) of Ardfern and Dunstaffnage marinas. The justification for basing the Matrix (100%) reference on this is that they represent full service marinas enjoying robust berthing occupancies and have rates that ultimately a coastal marina at any of the coastal entrances to the Scottish Canals network could achieve.

It is always the case when setting a Matrix based charging system that a subjective decision has to be made on what represents the ‘A1’ (100%) proposition. This will always be the subject of debate but BSC LLP has nearly 45 years of experience of the leisure market and has used this on arriving at our proposal. Fine tuning of the ‘headline’ charging rate and discount percentages on a regional basis will need to be discussed to ensure the accuracy of the Matrix for all Scottish Canal locations.

Our matrix has illustrated that there is potential to review the leisure mooring pricing policy across Scottish Canals’ network and that with targeted implementation there is scope for improved facilities and revenues in a number of locations. However, it is of vital importance for the implementation of any pricing review that Scottish Canals understand the true cost of operating each facility (or group of facilities) to ensure that any modification to price ensures a realistic future for the operation of the canals.

BSC LLP believe that the private sector could have a major role to play in improving the facilities available to users of the canals as the level of Scottish Canals’ investments will to a degree be limited by the manner in which it is funded. As previously stated, the private sector will only be brought on-board if there is proof of a commercial return on a sustainable basis, from which BSC LLP has ascertained would be unlikely under the prevailing pricing regime. There is evidence in certain areas of the canal network that Scottish Canals charging may in fact be suppressing existing private sector operations and so a change to the pricing regime may encourage them to expand and invest.

In order to progress towards a commercial pricing structure, it will be necessary for Scottish Canals (through consultation) to gain the support of its varied client and stakeholder base. This will require sensitive consultation with the support of robust comparative evidence to justify the necessity for price change. These stakeholders must understand that to provide an improved network of facilities a commercial return is a prerequisite.

6 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

2.0 Project Brief

Scottish Canals has instructed Blue Sea Consulting LLP (BSC LLP) to undertake a review of current berthing rates on its canal portfolio with a view to establishing a coherent and sustainable pricing policy for Leisure craft.

The instruction is to consider the current facilities in the context of comparable offerings in Scotland, England, Ireland and selected European countries. A pricing matrix is to be created that considers the range of features that affect price with the goal of facilitating the transparent pricing of current and future canal facilities.

The matrix is to be based on comparable evidence gathered from relevant sources which will permit Scottish Canals to set a strategy for consultation with stakeholders on pricing and berthing provision. It is proposed that this matrix will be based on the grading of berthing facilities at around 50 present locations on the Union, Forth & Clyde, Crinan and Caledonian Canals. As an output this matrix and grading system should aid Senior Management in making decisions on investment and future development of canal berthing provision and services.

In line with the above overview the report considers the following in arriving at a robust pricing policy proposal:

Review marina and mooring detail supplied by Scottish Canals for Leisure Moorings on the; Union, Forth & Clyde, Crinan and Caledonian Canals Undertake a broad market overview of relevant mooring and berthing facilities in the UK and Ireland with comparators from Europe

Design and prepare facility scoring matrix

Preparation of pricing regime with comments

7 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

3.0 Project Background

Scottish Canals’ network consists of some 135 miles of navigable canal spread over 4 canals, many traversing some of the most scenic parts of Scotland while some stretches flow through more urban landscapes. They provide ever changing scenery and a link to some of Scotland’s finest heritage whilst each canal has a character of its own.

The physical characteristics of each canal dictate the size and nature of the vessels found on the waterways with available depth, beam and air draft being the main influencing factors on craft. The canals provide not only a corridor for leisure and commercial vessels but are also arteries which facilitate wider leisure activities and regeneration opportunities. They play an important environmental role being home to a wide range of flora and fauna. It is this diversity of character and activity that has an influence on the berthing that is required or deemed suitable within each location.

The navigable distances, character and vessel capacity for each canal can be seen below:

3.1 Caledonian Canal

Name Max. Craft Length Beam Draft Caledonian Canal – 60 miles 45.72m (150ft) 10.67m (35ft) 4.1m (13.5ft)

The Caledonian Canal is Scottish Canals’ largest canal stretching from Inverness, in the east, to Corpach, in the west, and runs through some of the most dramatic scenery to be found on any waterway in the United Kingdom. Its former role as a commercial east/ west link is clear from the dimensions of its locks and for this reason it makes an ideal short cut across Scotland for many leisure craft and small commercial vessels.

Scottish Canals have a number of mooring facilities and one major marina (Seaport, Inverness) on the Caledonian, although there is scope for increased visitor and permanent moorings/ marinas at points of interest along its length. The visitor facilities at Banavie and Fort Augustus service major tourist hubs and as such are extremely popular (and often over-subscribed) whilst the longer stay moorings at Dochgarroch, Seaport and the privately owned ones at Caley Marina are fully let, with waiting lists.

The view has been regularly expressed that more mooring facilities would attract more vessels to this canal both for transit and annual mooring. Caley Marina and Inverness Marina provide service and repair facilities for visiting and permanent berth holders and there a number passenger/trip boats and charter vessels working on the Caledonian.

Presently, there is no arrival marina facility at Corpach and space is limited, BSCLLP consider that this is a missed opportunity but are unaware of land ownership and therefore the potential for developing a marina in this area. Fort Augustus on the mid-point of the canal is extremely popular and offers no long-term berthing, as a focal hub on the canal BSC LLP considers this is a missed opportunity and suggest there may be an opportunity to approach the developers of the Highland Club to sound out the 8 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

possibilities of developing a marina within their site. The highly popular tourism focal points at Urquhart Castle and The Loch Ness Monster Visitors Centre at Drumnadrochit have potential as stopping off points. Plans for development at Banavie/ Neptune’s Staircase suggest that there may be a future requirement for more berthing in this this area.

3.2 Crinan Canal

Name Max. Craft Length Beam Draft Crinan Canal – 9 miles 26.82m (88ft) 6.09m (20ft) 2.2m (7.3ft)

The Crinan Canal is Scotland’s most scenic short cut allowing vessels to move from the Clyde to the West Coast, without having to round the Mull of Kintyre.

Whilst there are long term leisure berth opportunities at Ardrishaig Basin, Bellanoch Marina and Crinan Basin the canal is generally perceived as a “transit canal” and as such most vessels will only remain for a day or so. The locks are not powered and therefore the transiting vessels need to be fully crewed if they are to enjoy the passage.

Scottish Canals has instigated an “assisted passage” scheme to help short-handed vessels pass through the network more easily and this has proved extremely popular with customers who have also benefitted from the knowledge shared by Scottish Canals staff.

The ability to moor additional craft on the canal is limited but more moorings and stopping points would be very popular. There is room for expansion at Bellanoch Marina (but this has possible planning and community issues to consider), whilst the basins at Ardrishaig and Crinan are currently operating at capacity. In the longer term there is the realistic opportunity to create a coastal marina to the west of Ardrishaig Sea Lock and there are also plans to convert buildings at Ardrishaig, adjacent to the Sea Lock, to provide a chandlery and café.

A new facilities block has been constructed at Crinan which will undoubtedly prove popular and may encourage more people to stay overnight in the basin when berths are available. There is also scope for it to encourage vessels to anchor off the hotel in good weather. Around the villages of Crinan, Ardrishaig and Cairnbaan there are popular cafes and restaurants and in the winter boats are hauled out ashore at Cairnbaan. Crinan also has a good boatyard and chandlery.

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3.3 Forth & Clyde Canal

Name Max. Craft Length Beam Draft Forth & Clyde Canal – 35 miles 19.20 (63ft) 6.00m (19ft 8in) 1.83m (6ft) / Air. 3.00m (9ft 10in)

Whilst lesser known than the Caledonian and Crinan in coastal leisure boating, the Forth and Clyde Canal still provides a popular, valuable and interesting lowland passage between the East and West Coast of Scotland and has a vibrant community all of its own. Opened up as a result of the Millennium Link Project the canal is restricted not only by draft, but also by a number of low bridges, for this reason yachts have to dismast at Grangemouth or at Bowling. Many modern motor boats (even up to 40’), which do not have flybridges may be able to transit the canal, with the exception of the Glasgow Branch which is both shallower and narrower. There are a number of boats which enjoy the canal life of the Forth and Clyde Canal and the Union and rarely leave their confines.

The Forth and Clyde canal has seen many interesting developments over the years with the Falkirk Wheel - connecting it to the smaller and narrower Union Canal - the Helix Park and the amazing thirty metre high Kelpie Horse Sculptures (recently opened) on its banks. The Paddle Sports Centre at Pinkston in the centre of Glasgow on the Glasgow branch opens in early 2014 and will provide a unique facility in the heart of the city. Also in the early part of 2014 the new 1km canal extension will open at Grangemouth making the eastern most access to the canal far easier, ensuring that the transit of the canal will appeal to even more boats from both the east and west and making it even easier for boats based on the canal to access the Firth of Forth.

Passing through a mix of scenery, communities, heritage and nature the Forth and Clyde is a fascinating trip and one that should become increasingly popular with the number of upgrades that have been recently completed, or are planned for completion in the very near future. The canal has a number of marinas on it, ranging from small modern basins housing twenty plus boats to the larger facilities at Grangemouth Sea Lock and Auchinstarry. Southbank is a modern marina and is about to undergo pontoon improvements and the two main marinas require some modernisation and upgrade. Plans are already afoot to extend and modernise the marina at Grangemouth. The linear moorings along the canal are of varying ages and fit-out but are all very popular and there is very little vacant berthing for annual vessels. Being in the heart of Scotland the canal is popular with boaters, anglers, paddlers, rowers, walkers and cyclists and as such is, in places, busy and vibrant; this can lead to conflict and for certain mooring areas to be busy and potentially less popular. Scottish Canals are aware of potential conflicts and work with all the interest groups to ensure the Canal can be enjoyed by all and that the varied uses coexist and indeed benefit from each other.

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3.4 Union Canal

Name Max. Craft Length Beam Draft Union Canal – 31 miles 20.5 (67ft 6in) 3.50m (11ft 6in) 1.07m (3ft 6in) / Air. 2.70m (8ft 11in)

The Union Canal runs from the centre of Edinburgh, at Edinburgh Quay to the Falkirk Wheel and is the most like a traditional English canal that is to be found in Scotland. It does not benefit from the vast network that is available to Canal Boats in England and Wales, but is none the less well populated by traditional narrow boats. Being a contour canal the Union benefits from not having numerous locks to navigate and as such is an easy and relaxed canal to use. The scenery is spectacular and again history, heritage and nature abound. Hire boats and trip boats operate along its length which can access the Forth and Clyde via the Falkirk Wheel. The size restrictions require a differing style of mooring facility when compared to the other Scottish Canals and they are predominantly linear in nature.

3.5 The Nature of Berthing Facilities on the Canals

Scottish Canals has a diverse portfolio of marinas and moorings that have, in many cases, evolved rather than been developed through a strategic plan. Rightly, Scottish Canals have taken opportunities to leverage new marina basins from waterside developments and adopt basins where they have become available through commercial opportunities.

Many of the mooring facilities have grown organically and therefore do not fit the mould of recognised moorings and marinas. For this reason, among others, the pricing levels across the canal network vary substantially and in many instances bear little relation to general marina/ mooring tariffs across Scotland.

The Scottish Canals product ranges from simple un-serviced linear berths on the bankside, through serviced jetty/ pontoon berths, to simple canal basins with pontoons and ultimately to comprehensive leisure marinas, with food/ beverage, modern facility blocks and support staff. The network has a number of well-regarded marinas with Seaport (Inverness, Caledonian Canal), Auchinstarry Marina and Bellanoch Marina but none of these have the level of services or a boatyard that is required to put them on a par with the leading Clyde and West Coast marinas.

It is not practical within this report to detail each individual mooring facility, however the work done in arriving at the Charging Matrix has necessitated BSC LLP to study each mooring classification and define what it offers to the client in terms of facility and location. During the course of our research it became very evident that within each

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classification there was a variation in the “offer” in terms of physical quality and in terms of location and that this had an impact on the value a customer may perceive and what they may therefore pay for any given mooring/ location.

In speaking to users it is clear that they generally share a view that the majority of moorings are well maintained but they would, generally, prefer to see more serviced locations and more modern low maintenance (and non-slip) materials to give a more uniform quality to the mooring provision. Many users have, during general conversation, stated a preference for seeing more linear and marina berths, but equally others were concerned that an over provision may spoil the natural beauty of the rural sections of the canals.

The product on offer within the Scottish Canals Network is generally acknowledged to be of a reasonable standard and well managed, and in particular the service provided by the staff has been regularly praised, however the level of supply and general provision does not necessarily meet the modern expectations of customers or meet demand in certain areas. In general terms the marine leisure industry is maturing and it can be expected that demands on quality, service and facilities will increase possibly requiring an upgrade of moorings in some locations over time. When attracting vessels from outside of the canal network to berth on the canals it is vital that the Scottish Canals team have an understanding of the quality and service levels offered elsewhere and develop the mooring product in line with expectations.

If investment in marinas and moorings on the Canals is to be increased to meet demand it stands to reason that it must be financially sustainable to justify investment by Scottish Canals and encourage private sector investment. 4.0 Pricing

Our pricing study considers a list of selected comparables covering leisure berthing rates from the following list of locations:

Location 1 Scotland: West Coast & Clyde, East Coast & Morayshire 2 England: North East of England, North of England and Midlands 3 Northern Ireland: Coastal and Inland 4 Ireland: Coastal and Inland 5 Holland: Coastal 6 France: Inland 7 Sweden: Coastal and Inland

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In order to prepare the Charging Matrix it was necessary to review comparative leisure marina berthing charges. To work within the scope of this instruction an overview of the UK market was carried with a focus on the Scottish market. Further comparable pricing was sought from selected coastal and inland marina locations in Europe.

From our research it is evident that generally inland leisure berthing prices differ considerably between locations, more so than in comparison to their coastal counterparts. A comprehensive list of pricing is provided in Section 5.0 below and illustrates the variance in prices at a local level.

At a national level, Section 4.1 highlights a clear North / South divide in coastal marinas with Scotland and Ireland charging some of the lowest average annual rates in the UK. There are, however, isolated pockets within Scotland where ‘premium’ rates are achieved. These are predominately on the Clyde and West Coast and are dominated by around a dozen established facilities in prime sailing locations. Those facilities on the East Coast and Moray Firth offer a comparatively cheaper option as the marine leisure product remains rather less developed and the sailing waters are more difficult. Whilst there are development opportunities on the East Coast it generally offers fewer opportunities for recreational boating and has yet to see the rise in berthing tariffs achieved in the west; this influences (east to west) the pricing levels Scottish Canals are likely to achieve at the margins of their ownership.

4.1 UK Pricing - Coastal Marina Comparisons

UK Pricing – Average £/m (Single Payment, 2013) UK Pricing – Highest & Lowest £/m (Single Payment, 2013)

Location Avg. £ Location Highest Lowest 1 South Coast £ 424.84 1 South West £ 761.06 £ 97.20 2 South West £ 342.14 2 South Coast £ 671.11 £ 100.00

3 Channel Islands £ 325.32 3 South East £ 500.00 £ 75.54 4 Wales £ 287.17 4 Wales £ 421.50 £ 204.00 5 South East £ 230.11 5 Scotland £ 399.00 £ 55.23

6 East Coast £ 221.11 6 Channel Islands £ 385.67 £ 180.17 7 North East £ 214.26 7 Ireland £ 374.10 £ 90.29 8 Ireland £ 208.88 8 East Coast £ 358.08 £ 79.62

9 North West £ 186.99 9 North West £ 323.61 £ 120.00 10 Scotland £ 172.18 10 North East £ 251.30 £ 136.38 11 Northern Ireland £ 144.28 11 Northern Ireland £ 237.66 £ 53.30

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The comparison of average prices and highest lowest prices charged in the eleven UK geographic regions studied produces some interesting anomalies where Scottish tariffs are concerned:

Scotland has the second lowest average charge, ranking 10th, despite the fairly high charges achieved on the Clyde. The average pricing is pulled down by local authority and harbour trust marinas. It would be interesting to study the trading figures of the marinas charging such low figures as they are extremely unlikely to be making profits, or breaking even if all relevant costs were applied to the operations. Scotland ranks 5th in the highest tariffs achieved, mainly due to the premium status of Kip and Largs Marinas The South Coast is ranked 1st in terms of highest average charges, but 2nd in highest charges achieved. Naturally one would assume the South Coast would achieve the highest average charges, having the wealthiest and most densely populated population The South West ranks 2nd in average charges, despite have the 6th lowest price. The stats are distorted by the fact that Dart Haven and Salterns are the most expensive marinas in the UK in an area with a lowest density of marinas. Dart Haven, Dartmouth, and Salterns, Poole Harbour, achieve these premium tariffs due to being in scenic locations, superior to the likes of the Solent, but still access wealthy population centres.

4.2 Research & Comparable Pricing

All prices are ‘per metre’ and relate to 2013 season unless stated otherwise. Refer to Appendix A for location and Appendix B for full list and details.

West Coast & Annual Summer Monthly Weekly Daily Scotland Kerrera, Oban £ 315.00 £ 210.00 £ 56.00 £ 15.50 £ 2.30

Ardfern, Argyll £ 330.00 £ 215.00 £ 53.50 £ 15.20 £ 2.30

Dunstaffnage, Oban £ 339.00 £ 230.00 £ 67.40 £ 16.90 £ 2.45

Croabh, Argyll £ 300.00 £ 210.00 £ 45.50 £ 15.30 £ 2.30

Portavadie, Loch Fyne £ 335.00 £ 222.50 £ 53.50 £ 15.30 £ 2.30

Tarbert, Loch Fyne £ 175.57 £ 99.44 £ 41.26 £ 14.38 £ 2.51

Rothesay, Clyde £ 232.50 £ 195.50 £ 400.00 £ 108.00 £ 19.00

Largs, Clyde £ 380.00 £ - £ 53.60 £ - £ 2.80

Kip, Clyde £ 399.00 £ 317.85 £ 57.50 £ 15.00 £ 2.25

Holy Loch, Clyde £ 366.57 246.76 £ 44.44 £ 13.30 £ 2.10

Rhu, Clyde £ 347.00 £ 215.00 £ 56.00 £ 16.00 £ 2.50

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James Watt Dock, Clyde £ 294.70 £ 249.60 £ 48.70 £ 13.85 £ 2.20

Ardrossan, Clyde £ 315.00 £ 264.00 £ 49.00 £ 13.80 £ 2.60

Troon, Clyde £ 317.15 £ 263.78 £ 48.96 £ 13.15 £ 2.63

Stranraer, Dumfries £ 83.60 £ - £ - £ - £ 15.00

Campbeltown, Argyll £ 121.00 £ 90.75 £ 28.00 £ 9.75 £ 2.10

Ardlui, Loch Lomond £ 215.00 £ 28.00 £ - £ 95.00 £ 16.00

Loch Lomond Marina £ 219.78 £ - £ - £ - £ 25.00

Eyemouth, South East £ 154.30 £ - £ - £ - £ 18.90

Dunbar, East Coast £ 453.60 £ - £ - £ - £ 21.00

North Berwick, East Coast £ 41.40 £ - £ - £ - £ 14.00

Port Edgar, East Coast £ 236.80 £ - £ 28.90 £ 10.00 £ 2.40

Anstruther, East Coast £ 55.23 £ - £ - £ - £ 1.16

Tayport, East Coast £ 198.00 £ - £ - £ - £ -

Peterhead, North East £ 93.60 £ - £ - £ - £ -

Banff, North East £ 129.76 £ - £ - £ - £ -

Whitehills, North East £ 127.00 £ - £ - £ - £ 18.00

Lossiemouth, North East £ 158.40 £ - £ 440.00 £ 110.00 £ 20.00 Inverness Marina, North £ 175.00 £ 120.00 £ 30.00 £ 15.00 £ 2.50 East

England (North & Annual Summer Monthly Weekly Daily Midlands) £ £ Royal Quays £ 248.50 £ - £ 2.50 40.00 13.75 £ £ St. Peters Basin, Coastal £ 180.00 £ - £ 2.00 25.50 11.00 15 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

£ Brinklow Marina, Inland £ 124.87 £ 118.80 £ - £ - - £ £ Chirk Marina, Inland £ 122.60 £ - £ - - 2.35 £ £ Barton Marina, Inland £ 127.31 £ 12.30 £ 8.50 - 2.57 £ £ Aquaduct Marina, Inland £ 159.50 £ - £ 20.00 345.00 95.00 £ £ Bill Fen Marina, Inland £ 46.40 £ 25.53 £ - 14.03 5.21 £ Buckden Marina, Inland £ 202.45 £ - £ - £ - - £ £ Evesham (Narrow), Inland £ 173.16 £ - £ 12.00 15.98 3.99 £ £ Evesham (wide), Inland £ 346.32 £ - £ 25.00 26.64 6.66 £ £ Fallwood Marina £ 109.89 £ 58.60 £ 0.66 - 12.15 £ £ Ripon (Narrow), Inland £ 179.00 £ - £ 15.00 - 65.00 £ £ Ripon (Wide), Inland £ 232.70 £ - £ 15.00 - 65.00 £ £ £ £ £ Whitebear, Inland 192.00 115.00 19.30 - - Selected European Annual Summer Monthly Weekly Daily Countries Amsterdam Marina, £ 233.00 £ - £ - £ - £ 1.60 Coastal Marina Scheveningen, £ - £ - £ 42.60 £0.00 £1.82 Coastal Port de L'Arsenal, France, £ 309.90 £ - £ 43.91 £ - £ - Inland Port De Roanne, France, £ 398.17 £ - £ 60.11 £ 22.89 £ 5.10 Inland Le Port de Pleasance £ 1,490.00 £ - 161.36 £ 40.34 £ 9.72 d'Auxerre, France, Inland Marina Alabodarna, £ 600.00 £ 420.00 £ 14.00 Sweden, Coastal Karlsborg, Sweden, Inland £ 18.75

Sjotorp, Sweden, Inland £ - £ - £ - £ - £ 22.15

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Northern Ireland & Annual Summer Monthly Weekly Daily Republic of Ireland Carrickfergus Marina, £ 220.00 £ 157.00 £ 30.50 £ 13.25 £ 2.55 Coastal Bangor Marina, Coastal £ 243.75 £ 186.25 £ 48.00 £ 16.00 £ 25.00 Dun Laighoire Marina, £ 348.00 £ 260.00 £ 52.00 £ 14.40 £ 2.88 Coastal Dun Laighoire Marina £ 232.00 £ 174.00 £ - £ - £ - (West Bight), Coastal Ballycastle Marina, £ 171.00 £ 143.00 £ 34.00 £ 110.00 £ 21.00 Coastal Lough Derg Marina, Inland £ 133.20 £ - £ - £ - £ -

Lakeside Marina, Inland* £ 1,440.00 £ - £ - £ - £ - Poolbeg Yacht Club, £ 224.00 £ 172.00 £ 36.00 £ 12.00 £ 2.00 Coastal *Fixed rate – per boat 5.0 Charging Matrix Description

The following section sets out the rationale behind the utilisation of a charging matrix and the parameters which we have used to inform our pricing review.

5.1 Why use a Charging Matrix?

Marinas, berthing facilities and moorings play a major role in providing service and activity on the canal network, however, if the charging is set at a level where the individual facility loses money it is natural that:

Money lost in these ventures will need to be charged elsewhere to the company running costs, possibly making other ventures less viable. The losses consume valuable revenue/ expenditure that could be invested in the canal network/ assets The facility may fail to provide sufficient levels of service and repair ultimately leading to a poor quality experience

The Matrix should provide a useful tool when assessing the returns that can be expected from new developments or investments by providing a ‘ready reckoner’.

If Scottish Canals charge below the “Economic Mooring Rate” it is conceivable that they could inadvertently be competing with private sector businesses thereby discouraging private sector investment in existing and new projects. However, in certain locations berthing may have to be provided by Scottish Canals as a catalyst for growth,

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regeneration or community development and in these cases, in the short to medium term, a “view” may have to be taken on charging levels for sound economic benefit reasons. In these cases it should ultimately be the intention to charge the economic rate as soon as practically possible in order to ensure that the facility has a sustainable future. In any of these situations the matrix should at the very minimum provide a good comparable basis on which to set charging levels and inform business planning.

BSC LLP has suggested that Scottish Canals’ pricing structure should have an element of consistency to ensure that:

Scottish Canal’s charges relate to those charges levied in the private sector in any given region The charges consistently reflect the level of service and facilities provided and the location in which they are situated As a public sector organisation Scottish Canal’s charging mechanism should be transparent and therefore simple for the management to set/assess charging levels. In the event of a challenge to any given tariff the Matrix should assist in providing explanations for any defence’

Scottish Canals’ portfolio of marinas and moorings is mixed with a range of facilities from well equipped, but not full service marinas, to un-serviced bankside linear moorings. The facilities are located in a variety of locations varying from; prime town centres to difficult urban location through scenic tourist destinations to isolated remote locations. BSC LLP believes that a Charging Matrix that considers facilities and locations could be used to guide the Scottish Canals to a consistent charging regime, whilst at the same time providing clarity for the clients and stakeholders. By using a thorough pricing comparison to arrive at a benchmark price clients can see that Scottish Canals are not attempting to profiteer but to set a realistic pricing structure that is fair, business-like and that should encourage private sector investment in the medium term, whilst still permitting Scottish Canals to offer a high quality product and maintain it in a manner that provides a strong legacy for the future.

5.2 Defining the Matrix Parameters

As with any system that attempts to standardise a varied product mix the matrix could be open to criticism, however BSC LLP believe that the core design is sound and that it could be amended to suit the outcomes of consultations and still remain a robust mechanism. We would suggest that the Matrix should still be considered, at this stage, ‘a work in progress’.

In designing the matrix we have looked at the current Scottish Canals berthing assets and reviewed the general marina market and have set parameters that BSC LLP believe most affect the desirability (and hence value) of the moorings/ marinas on offer.

When using the matrix it may be necessary to apply a discount to bring it in line with regional pricing – e.g. A marina located on the Clyde benefits from excellent sailing waters, little tidal influence, deep water, a chain of marinas and mooring facilities to visit, numerous events, excellent communications and easy links to wider cruising locations. When compared to say the Forth, where the waters are shallow, with few cruising destinations, less events, the marinas are less well located and have less links to wider cruising locations - charges reflect a lesser rate on the East coast compared to the West and it can be seen that a geographic differential in charges exists. As outlined in Section 4 there is an established benchmark of higher pricing for Clyde and West Coast marinas in comparison to North and East Coast locations.

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5.3 The Matrix Parameters - Location

The location matrix parameters we have identified are:

Urban & Coastal Rural Inland Location Heading Location Heading A Attractive Town Centre Location (Direct Access to Sea) RA Attractive Village Location B Town Centre Location (<45 minutes to the Sea) RB Walking Distance to Village Facilities C Within Walking Distance of Town (<1km) RC Attractive Rural Location D Isolated but Attractive Location RD Rural Busy Location E Disadvantaged Location RE Disadvantaged Location

Urban & Coastal

5.3.1 Location A - Attractive Town Centre Location (direct sea access)

Marinas that are town centre located generally benefit from good retail and leisure opportunities; this in combination with good communications, full service support and direct access to the sea means these facilities generally command a high level of berthing fee.

Currently Scottish Canals would not be seen to have a marina in this category, but if a marina was to be developed at Ardrishaig, as part of regeneration project it is likely it would qualify in this category. Seaport Marina, Inverness, cannot be considered A, but has an excellent location. It does also however have a boatyard, chandlery and service facilities within 1000m, plus a supermarket and other retail offerings, which could take it to a level between A & B and 1 & 2. Having good access to the sea, but being restricted by lock movements it could not make category A, but could be considered being above B. This makes Seaport a location that will require discussion when applying the Matrix. It can be seen that the Matrix headings will still provoke discussion around pre-determined definitions.

5.3.2 Location B - Town Centre Location (within <45 minutes of sea)

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Marinas located in attractive towns and cities tend to have additional appeal, especially to families, in that they benefit from a higher level of social and retail activity. Towns/ Cities with historic interest and locations of outstanding natural beauty are favoured by the older generation of boat owner, cruising yachtsmen and marine tourists and therefore also command a premium. Good communications by air and rail are particularly attractive.

5.3.3 Location C – Within Walking Distance of Town (<1km)

Given that most towns have a varied food and beverage offer, reasonable retail and supermarket offers in addition to some leisure elements, a marina on the edge of a town or city will command a premium over a more remote facility. Boat owners can arrive by public transport or car and purchase supplies on arrival, visitors can replenish their store and both visitors and regular marinas users dwell longer in any given marina if they have the variety a town offers on their doorstep. To some, being on the outskirts of a town is preferable as it can be quieter and more secure (this appeals to non-family crews in particular).

5.3.4 Location D – Isolated but Attractive Location

Marinas in such areas are very popular with cruising boats, visitors and charter operations, but slightly less popular for long term berthing as a familiarity factor creeps in. As such the headline berthing fees are reduced, but can to a degree be offset against healthy short term charging.

5.3.5 Location E – Disadvantaged Location

Generally smaller and more remote these berthing facilities have an appeal to the more traditional boating fraternity, who appreciate some nearby facilities but enjoy the less frantic ambience. The general appeal is reduced, but they can enjoy typically loyal client bases.

Rural Inland

5.3.6 Location RA – Attractive Village Location

These locations and berthing facilities are always popular on the inland waterways but tend to be small. In comparison to similar coastal facilities these locations are price sensitive, but occupation levels high.

5.3.7 Location RB – Walking Distance to Village Facilities

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Edge of village locations are popular in that they are often quieter appealing to those customers who are willing to exchange facilities for privacy. Not all of these locations have power and water but those that do command a reasonable premium over non-service locations.

5.3.8 Location RC – Attractive Rural

If a user is choosing to moor in a rural location with the incumbent disadvantages of poorer communications and services they will normally be trading these elements, willingly, in order to enjoy peaceful isolation.

5.3.9 Location RD - Rural Busy Location

If the moorings are at a confluence of routes (paths/ roads) or located on particularly popular stretches of towpath (enjoying numerous users cycling, walking, fishing, running etc) then their peaceful mooring is disadvantaged and therefore less appealing to that profile of customer and unlikely to prove advantageous to other sectors, this influences the charging regime accordingly.

Whilst towpath/ bankside, linear moorings have an appeal to certain sectors of the market, the sector is small and very price sensitive.

5.3.10 Location RE - Disadvantaged

This banding has been placed in the Matrix to account for the moorings to be found in more difficult areas; those located in areas where they are disadvantaged by locality (maybe industrial, run-down, yet to be regenerated) and issues such as traffic or industrial impact.

5.4 The Matrix Parameters – Facilities

Boat owners, and especially the family sector and busy professionals, are influenced in their chosen location not only by what the area around the facility has to offer but also by the facilities that are on offer on-site to make their boating simpler and more convenient. It will be seen that when applying the Charging Matrix to various berthing facilities and locations boating clients look for numerous differing elements when choosing the preferred mooring for their boat. Price is often a key point but customers often rate service and location in different proportion, such that the traditional canal boater often appreciates tranquillity and setting over service and facilities and the family/ professional sector often rate services over setting.

It is understood that Scottish Canals is trying to increase traffic through the canals and the number of owners choosing to berth their leisure vessels permanently on the canal based moorings. According to the British Marine Federation the family and professional sectors are the fastest growing sector in leisure boating, with the over 50’s market also being robust. Often referred to as the “grey pound” the latter sector often chooses location and setting over ultimate service and is often more mobile, having more time 21 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

to spend on their hobby and less restrictions. In many ways Scottish Canals provides much of what the “grey pound” market is looking for, however it is not as well serviced with full facility locations which would attract the families and professionals.

The vertical axis on the Matrix, provides a balance between full facility at one end of the spectrum to the most basic facility at the other.

The facilities matrix parameters we have identified are:

Location Heading 1 Full Facility, Full Service with Boatyard 2 Full Facility, Full Service no Boatyard 3 Basic Marina Berthing Facility 4 Basic Berthing with Limited or Old Pontoons 5 Bankside with Power, Water and Toilet/Shower 6 Bankside with Power & Water 7 Bankside no Services with Jetty 8 Bankside no Services

Once a score has been arrived at on the matrix a degree of subjective adjustment may still need to be applied to marinas and moorings. A brand new marina with all new facilities will attract the optimum charge within any given matrix score, whereas a marina that is 50% through its 25yr life cycle may be looking slightly tired, in terms of standards, design, buildings and infrastructure appearance and inevitably a slight price adjustment to reflect this may need to be applied (in reality if demand remains high this factor can be ignored).

Inevitably there will also be some debate over where any given development fits within the matrix, but it is BSC LLP’s view that this very process will lead to a healthy and more logical approach to pricing and development. In general this debate does not currently take place in the marine leisure industry, where price selection is based purely on competitor analysis.

In general terms all the marina facilities should reach the minimum standards of TYHA Code of Practice for Design, Installation and Operation of Coastal and Inland Marinas and Yacht Harbours.

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6.4.1 Facility 1 – Full Facility, Full Service with Boatyard

To score 1 on the Matrix a marina must have an equal level of facilities as those possessed by the leading marinas in Scotland, which may also mean a commitment to on-going development and investment to keep pace with the market. As a minimum a marina will need should provide the following;

A high quality facilities building – Incorporating at least a customer reception and administration office, berth holder toilets and showers, a laundry, disabled facility with shower. Ideally there would also be family facilities with a bath. Food and Beverage, Contractors and Retail – To encourage community development within the marina confines the marina should have a suitably sized Bar/ Restaurant or Café capable of creating a social focal point. Further, as a minimum there should be a chandlery and a brokerage boat sales operation and ideally other contractors and operators with a site presence.. Information Point – Internal to the office at least one notice board and shelf display with relevant tourist information, customer information and general safety information. In addition a good quality external information board with health and safety information, opening hours, weather and tides (updated daily), general boating information and a marina plan should be installed. Ample and convenient parking – this should allow easy access to berthing and be zoned to coincide with bridge head access. There should also be convenient customer parking at any retail, bar/ restaurant and service building. Bridgeheads should have security control and lighting should be comprehensive. Refuse Points – at each bridgehead and at one point in the boat yard there should be a tidy and concealed refuse collection/ sorting points. In the boatyard there should be additional facilities for the environmental disposal of paints, fuel/ oil, anodes, wood and contaminated materials Service Pontoon – A pontoon with pumps for fuel, black water pump-out and water. It should be equipped to complete transactions and sell gas. It should meet relevant safety regulations for fire and oil spill Marina pontoons - should be of a high quality and made of low maintenance materials, preferably with hard wearing non-slip deck materials. The decking should be well maintained and free from algae and detritus. Pontoon Services – as a minimum there should be a water point for every second boat and a 16a/ 32a power point for every boat contained in robust and lit service modules. The walkways and bridges should be well lit and high visibility safety ladders and SOS modules should be located conveniently. There should be luggage caddies/ trolleys conveniently located at each bridgehead. Boatyard – there should be a secure and well equipped boat yard capable of storing at least 20% of the marina’s capacity. This should be well surfaced and dry under foot. For lifting and servicing vessels it should have either a slipway or straddle hoist with capacity to lift the majority of the boats berthed in the marina (by weight). The Lifting area should have environmental wash down control. There should be a workshop and storage compound. The yard should be well lit, fenced and have water and power to directly service a minimum of 50% of the boats stored.

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6.4.2 Facility 2 – Full Facility, Full Service no Boatyard

To score 2 on the Matrix a marina must also have an equal level of facilities as those possessed by the leading marinas in Scotland, which may also mean a commitment to on-going development and investment to keep pace with the market. As a minimum a marina will need to have the following;

A high quality facilities building – Incorporating at least a customer reception and administration office, berth holder toilets and showers, a laundry, disabled facility with shower. Ideally there would also be family facilities with a bath. Food and Beverage, Contractors and Retail – To encourage community development within the marina confines the marina should have a suitably sized Bar/ Restaurant or Café capable of creating a marina hub. Further, as a minimum there should a chandlery and a brokerage boat sales operation and ideally other contractors and operators would have on site offices. Information Point – a. Internal to the office at least one notice board and shelf display with relevant tourist information, customer information and general safety information. b. Good quality external information board, with health and safety information, opening hours, weather and tides (updated daily), general boating information and a marina plan Ample and convenient parking – this should allow easy access to berthing and be zoned to coincide with bridge head access. There should also be convenient customer parking at any retail, bar/ restaurant and service building. Bridgeheads should have security control and lighting should be comprehensive. Refuse Points – at each bridgehead there should be tidy and concealed refuse collection/ sorting points. Service Pontoon – A pontoon with pumps for fuel, black water pump-out and water. It should be equipped to complete transactions and sell gas. It should meet relevant safety regulations for fire and oil spill Marina pontoons - should be of a high quality and made of low maintenance materials, preferably with hard wearing non-slip deck materials. The decking should be well maintained and free from algae and detritus. Pontoon Services – as a minimum there should be a water point for every second boat and a 16a/ 32a power point for every boat contained in robust and lit service modules. The walkways and bridges should be well lit and high visibility safety ladders and SOS modules should be located conveniently. There should be luggage caddies/ trolleys conveniently located at each bridgehead.

6.4.3 Facility 3 – Basic Marina Berthing Facility

To score 3 on the Matrix a marina must have modern facilities and quality pontoons. It should be well maintained and have a modern, easy manoeuvring, layout to suit the sizes of vessels likely to berthed in it. As a minimum a marina will need to have the following;

A high quality facilities building – Incorporating berth holder toilets and showers and disabled facility with shower. Information Point – Internal notice board and shelf display with relevant tourist information, customer information and general safety information. A good quality external information board, with health and safety information, payment details and charges, general boating information and a marina plan with service and emergency contact numbers. 24 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Ample and convenient parking – this should allow easy access to berthing and be zoned to coincide with bridge head access. Bridgeheads, where relevant should have security control and lighting should be comprehensive. Refuse Points – at each bridgehead there should be tidy and concealed refuse collection/ sorting points. Marina jetties/ pontoons - should be of a high quality and made of low maintenance materials, preferably with hard wearing non-slip deck materials. The decking should be well maintained and free from algae and detritus. Pontoon/ Jetty Services – as a minimum there should be a water point for every second boat and a 16a/ 32a power point for every boat contained in robust and lit service modules. The walkways and bridges should be well lit and high visibility safety ladders and SOS modules should be located conveniently. There should be luggage caddies/ trolleys conveniently located at each bridgehead.

6.4.4 Facility 4 – Basic Berthing Facility with Limited or Old Pontoons

To score 4 on the Matrix a facility must be well maintained and have a layout to suit the sizes of vessels likely to berthed in it. As a minimum a marina will need to have the following;

A serviceable and clean facilities building – Incorporating berth holder toilets and showers and disabled facility with shower. Information Point - Internal notice board and shelf display with relevant tourist information, customer information and general safety information. A good quality external information board, with health and safety information, payment details and charges, general boating information and a marina plan with service and emergency contact numbers. Ample and convenient parking – this should allow easy access to berthing and be zoned to coincide with bridge head access. Bridgeheads, where relevant should have security control and lighting should be comprehensive. Refuse Points – at each bridgehead there should be tidy and concealed refuse collection/ sorting points. Marina pontoons/jetties – Whilst not to the very latest designs the pontoons should be stable and of suitable dimensions to suit the vessels likely to be berthed on them. The decking should be well maintained and free from algae and detritus. Pontoon/ Jetty Services – as a minimum there should be a water point for every second boat and a 16a power point for every boat contained in robust and lit service modules. The walkways and bridges should be well lit and high visibility safety ladders and SOS modules should be located conveniently. There should be luggage caddies/ trolleys conveniently located at each bridgehead.

6.5.5 Facility 5 – Bankside with Power, Water and Toilet/Shower Facilities

To score 5 on the Matrix the mooring facility should have safe access and good serviceable jetties or pontoons, although they may not be to the latest design. It should have a layout to suit the sizes of vessels likely to berth and there should be room to carry out berthing manoeuvres safely. As a minimum the facility will need to have the following:

A serviceable and clean facilities building – Incorporating berth holder toilets and showers and disabled facility with shower. 25 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Information Point – Internal notice board and shelf display with relevant tourist information, customer information and general safety information. A good quality external information board, with health and safety information, payment details and charges, general boating with service and emergency contact numbers. Convenient parking – this should allow easy access to berthing and be zoned to coincide with bridge head access. Approaches should be lit to a level commensurate with the location. Refuse Points – There should be tidy and concealed refuse collection points. Marina pontoons/ jetties – Whilst not necessarily to the very latest designs the pontoons should be in good repair and of suitable dimensions to suit the vessels likely to be berthed on them. The decking should be well maintained and free from algae and detritus. Pontoon/ Jetty Services – as a minimum there should be a water point for every second boat and a 16a power point for every boat contained in robust and lit service modules. The walkways and bridges should be lit and have high visibility safety ladders.

6.5.6 Facility 6 – Bankside with Power & Water

To score 6 on the Matrix the mooring facility should have safe access and good serviceable jetties or pontoons, although they may not be to the latest design. It should have a layout to suit the sizes of vessels likely to berth and there should be room to carry out berthing manoeuvres safely. As a minimum the facility will need to have the following:

Information Point – Good quality external information board, with health and safety information, payment details and charges, general boating information and service and emergency contact numbers. Parking – Parking should be available within 250m. Approaches should be lit to a level commensurate with the location on arrival at the entry point to the jetty/ pontoon. Refuse Points – There should be tidy and concealed refuse collection points. Marina pontoons/ jetties – Whilst not necessarily to the very latest designs the pontoons should be in good repair and of suitable dimensions to suit the vessels likely to be berthed on them. The decking should be well maintained and free from algae and detritus. Pontoon/ Jetty Services – as a minimum there should be a water point for every second boat and a 16a power point for every boat contained in robust and lit service modules. The walkways should be lit and have high visibility safety ladders.

6.6.6 Facility 7 – Bankside no Services with Jetty

To score 7 on the Matrix the mooring facility should have safe access and good serviceable jetties or pontoons, although they may not be to the latest design. It should have a layout to suit the sizes of vessels likely to berth and there should be room to carry out berthing manoeuvres safely. As a minimum the facility will need to have the following:

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Information Point – Good quality external information board, with health and safety information, payment details and charges, general boating information and service and emergency contact numbers. Parking – Parking should be available within 250m. Approaches should be lit to a level commensurate with the location on arrival at the entry point to the jetty/ pontoon. Refuse Points – There should be tidy and concealed refuse collection points. Marina pontoons/ jetties – Whilst not necessarily to the very latest designs the pontoons should be in good repair and of suitable dimensions to suit the vessels likely to be berthed on them. The decking should be well maintained and free from algae and detritus.

6.6.7 Facility 8 – Bankside no Services

To score 8 on the Matrix the mooring facility should have safe access via well maintained banks and towpath. The canal walls should be suitable for safe berthing. It should have a layout to suit the sizes of vessels likely to berth and there should be room to carry out berthing manoeuvres safely. As a minimum the facility will need to have the following

Information Point – Good quality external information board, with health and safety information, payment details and charges, general boating information and service and emergency contact numbers. Parking – Parking should be available within 250m. Refuse Points – There should be tidy and concealed refuse collection

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6.0 Price Matrix – Proposed Pricing

The standard charge in the Matrix has been set at £350/m, being the rounded average of the leisure mooring rates (per metre annual single payment rate) of Ardfern and Dunstaffnage marinas. The justification for basing the Matrix (100%) reference on this is that they represent full service marinas enjoying robust berthing occupancies and have rates that ultimately a coastal marina at any of the coastal entrances to the Scottish Canals network could achieve. Reflecting the lower charges charged inland, a lower headline charging rate has been applied to ‘Rural Inland’. The basis for £260.00/m standard charge relates to the maximum price which is likely to be supported giving cognisance to inland, East Coast and North East pricing rates.

Urban & Coastal £350 Rural Inland £260 LOCATION ATTRACTIVE TOWN CENTRE WITHIN WALKING TOWN CENTRE ISOLATED BUT ATTRACTIVE LOCATION – up WALKING DIST DISADVANTAGED DISTANCE TO ATTRACTIVE RURAL BUSY LOCATION ATTRACTIVE VILLAGE DISADVANTAGED to 45 mins to OF TOWN LOCATION VILLAGE RURAL LOCATION –Direct Access LOCATION LOCATION Sea (1,000m) FACILITIES PRICING MATRIX (per m) to the Sea

FACILITY A B C D E R A R B R C R D R E

Marina → Bankside MARINA - FULL FACILITY - FULL SERVICE WITH 1 BOATYARD £ 350.00 £ 288.75 £ 280.00 £ 262.50 £ - £ 260.00 £ 208.00 £ 182.00 £ 156.00 £ -

MARINA - FULL FACILITY - FULL SERVICE 2 £ 297.50 £ 245.00 £ 245.00 £ 227.50 £ - £ 234.00 £ 221.00 £ 169.00 £ 143.00 £ -

BASIC MARINA BERTHING FACILITY 3 £ 262.50 £ 227.50 £ 185.50 £ 175.00 £ - £ 195.00 £ 176.80 £ 156.00 £ 123.50 £ - BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 245.00 £ 182.00 £ 157.50 £ 148.75 £ 122.50 £ 182.00 £ 169.00 £ 137.80 £ 117.00 £ 91.00 BANKSIDE POWER, WATER AND TOILET/ 5 SHOWER £ 210.00 £ 175.00 £ 140.00 £ 122.50 £ 105.00 £ 169.00 £ 166.40 £ 135.20 £ 115.70 £ 78.00

BANKSIDE POWER AND WATER 6 £ 175.00 £ 140.00 £ 122.50 £ 113.75 £ 105.00 £ 145.60 £ 143.00 £ 117.00 £ 110.50 £ 65.00

BANKSIDE NO SERVICES / WITH JETTY 7 £ 157.50 £ 122.50 £ 105.00 £ 96.25 £ 87.50 £ 140.40 £ 140.40 £ 106.60 £ 104.00 £ 52.00

BANKSIDE NO SERVICES 8 £ 105.00 £ 87.50 £ 87.50 £ 78.75 £ 70.00 £ 123.50 £ 123.50 £ 91.00 £ 97.50 £ 39.00

From our review of the Scottish Canals network we have undertaken an assessment of each location following the criteria set out in Section 5.0 to generate a Current rating from the Matrix. In assessing the possible development opportunities for each location we have generated a Potential rating. 28 Blue Sea Consulting LLP The Sugar Warehouse, James Watt Dock Marina, Greenock PA15 2UT t: +44 (0) 8451 301 001 www.blueseaconsultingllp.com

Whilst in some locations there is limited improvement possibilities at others the scope for further development is significant. Through the application of the Charging Matrix the difference between the rates can be converted to a potential ‘£ per m leisure charging rate’ and therefore assist in identifying and scoping investment.

The charging matrix for the Lowland Canals (Forth & Clyde and Union) is shown below. We have created a separate matrix for these canals following consultation and feedback from the managers of the Lowland Canals. Whilst there have been significant improvements across the Lowland Canal network in recent years, generally, the offer here is less developed (both in terms of facilities and pricing) in comparison to the more established locations found on the Crinan and Caledonian Canals. In time as the Lowland Canal network develops it will be necessary to incorporate pricing into the standard matrix.

LOCATION £250 LOCATION

Coastal <45 TOWN / VILLAGE RURAL RURAL CITY LOCATION minutes LOCATION ATTRACTIVE UNATTRACTIVE PRICING MATRIX (per m)

FACILITY A B C D E

Marina → Bankside MARINA - FULL FACILITY - FULL SERVICE WITH 1 BOATYARD £ 250.00 £ 200.00 £ 175.00 £ 150.00 £ -

MARINA - FULL FACILITY - FULL SERVICE 2 £ 200.00 £ 175.00 £ 168.75 £ 150.00 £ -

BASIC MARINA BERTHING FACILITY 3 £ 175.00 £ 150.00 £ 145.00 £ 118.75 £ - BERTHING BASIN/ LIMITED OR OLD PONTOONS 4 £ 125.00 £ 125.00 £ 112.50 £ 100.00 £ 75.00 BANKSIDE POWER, WATER AND TOILET/ 5 SHOWER £ 112.50 £ 106.25 £ 100.00 £ 93.75 £ 62.50

BANKSIDE POWER AND WATER 6 £ 100.00 £ 87.50 £ 81.25 £ 75.00 £ 62.50

BANKSIDE NO SERVICES / WITH JETTY 7 £ 87.50 £ 68.75 £ 68.75 £ 68.75 £ 56.25

BANKSIDE NO SERVICES 8 £ 75.00 £ 56.25 £ 56.25 £ 62.50 £ 50.00

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The tables in the following section provide our assessment of each location using the relevant pricing matrix. 2013 and 2014 pricing was provided by Scottish Canals which has been compared by BSC LLP against current and potential assessment of price using the matrix.

Our assessment of potential rating and pricing is based on potential improvements to facilities. In some locations there is huge potential for facility improvements whilst in others there is very little. No review of costs to carry out these improvements has been incorporated into this report.

6.1 The Caledonian Canal

BSC LLP BSC LLP BSC LLP Current BSC LLP Potential BSC LLP Current BSC LLP Potential Location No. Caledonian Canal 2013 (£) 2014 (£) Change v. Change v. % Change 2013 % Change 2014 Rating Rating Price Price 2013 2014 1 Banavie £129.50 £135.00 RB5 RB4 £ 166.40 £ 169.00 £ 36.90 £ 31.40 28.49% 23.26% Caledonian Canal 2 Corpach Reach £129.50 £135.00 RB7 RB5 £ 140.40 £ 166.40 £ 10.90 £ 5.40 8.42% 4.00% 3 Corpach £143.00 £148.50 RB5 RB3 £ 166.40 £ 176.80 £ 23.40 £ 17.90 16.36% 12.05% 4 Dochgarroch East £130.00 £135.00 RB6 RB5 £ 143.00 £ 166.40 £ 13.00 £ 8.00 10.00% 5.93% 5 Dochgarroch West £142.50 £151.00 RB5 RB5 £ 166.40 £ 166.40 £ 23.90 £ 15.40 16.77% 10.20% 6 Fort Augutus (Top) £121.50 £126.50 RA5 RA4 £ 169.00 £ 182.00 £ 47.50 £ 42.50 39.09% 33.60% 7 Gairlochy £106.00 £114.50 RC5 RC3 £ 135.20 £ 156.00 £ 29.20 £ 20.70 27.55% 18.08% 8 Kytra £102.00 £106.00 RC7 RC5 £ 106.60 £ 135.20 £ 4.60 £ 0.60 4.51% 0.57% 9 Laggan Avenue £94.64 £98.50 RC7 RC5 £ 106.60 £ 135.20 £ 11.96 £ 8.10 12.64% 8.22% 10 Laggan Top £109.00 £114.50 RD5 RD3 £ 115.70 £ 123.50 £ 6.70 £ 1.20 6.15% 1.05% 11 Seaport Marina £147.00 £153.00 B3 B2 £ 227.50 £ 245.00 £ 80.50 £ 74.50 54.76% 48.69% 6.2 The Crinan Canal

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BSC LLP BSC LLP BSC LLP Current BSC LLP Potential BSC LLP Current BSC LLP Potential Location No. Crinan Canal 2013 (£) 2014 (£) Change v. Change v. % Change 2013 % Change 2014 Rating Rating Price Price 2013 2014 12 Ardrishaig Basin £136.00 £141.50 C4 B1 £ 157.50 £ 288.75 £ 21.50 £ 16.00 15.81% 11.31% 13 Ardrishaig Dummy £161.00 £167.50 B4 B1 £ 182.00 £ 288.75 £ 21.00 £ 14.50 13.04% 8.66%

Crinan Canal 14 Bellanoch Bridge £115.00 £119.50 RC5 RC5 £ 135.20 £ 135.20 £ 20.20 £ 15.70 17.57% 13.14% 15 Bellanoch Marina £156.00 £162.00 RB3 RB2 £ 176.80 £ 221.00 £ 20.80 £ 14.80 13.33% 9.14% 16 Bellanoch Mooring £115.00 £119.50 RB8 RB2 £ 123.50 £ 221.00 £ 8.50 £ 4.00 7.39% 3.35% 17 Cairnbaan Lock 5 £121.00 £126.00 RC4 RC3 £ 137.80 £ 156.00 £ 16.80 £ 11.80 13.88% 9.37% 18 Crinan Basin £140.50 £146.00 D4 D3 £ 148.75 £ 175.00 £ 8.25 £ 2.75 5.87% 1.88% 19 Crinan Basin Dummy £161.00 £167.50 D3 D3 £ 175.00 £ 175.00 £ 14.00 £ 7.50 8.70% 4.48% 20 Crinan Rings £110.00 £114.50 RD RC5 £ 115.70 £ 135.20 £ 5.70 £ 1.20 5.18% 1.05% 21 Lock 14 Crinan £139.50 £145.00 RB6 RB6 £ 143.00 £ 143.00 £ 3.50 -£ 2.00 2.51% -1.38% 22 Lock 4 Top £139.50 £145.00 RB6 RB6 £ 143.00 £ 143.00 £ 3.50 -£ 2.00 2.51% -1.38% 23 Oakfield Bridge £115.00 £119.50 RB6 RB6 £ 143.00 £ 143.00 £ 28.00 £ 23.50 24.35% 19.67%

6.3 The Forth & Clyde Canal

BSC LLP BSC LLP BSC LLP Current BSC LLP Potential BSC LLP Current BSC LLP Potential Location No. Forth & Clyde 2013 (£) 2014 (£) Change v. Change v. % Change 2013 % Change 2014 Rating Rating Price Price 2013 2014 24 Auchinstarry £73.00 £76.00 D3 D2 £ 118.75 £ 150.00 £ 45.75 £ 42.75 62.67% 56.25% Forth & Clyde Canal 25 Bowling – Lower £139.00 £144.50 A3 A2 £ 175.00 £ 200.00 £ 36.00 £ 30.50 25.90% 21.11% 26 Bowling – Upper £101.50 £105.50 A5 A3 £ 112.50 £ 175.00 £ 11.00 £ 7.00 10.84% 6.64% 27 Bowling – Helenslea £139.00 £144.50 C3 C3 £ 145.00 £ 145.00 £ 6.00 £ 0.50 4.32% 0.35% 28 Camelon – Lock 16 £37.50 £40.00 B8 B7 £ 56.25 £ 68.75 £ 18.75 £ 16.25 50.00% 40.63% 29 Glasgow – Spiers Wharf £84.50 £88.00 B6 B5 £ 87.50 £ 106.25 £ 3.00 -£ 0.50 3.55% -0.57% 30 Grangemouth £65.00 £67.50 C4 C2 £ 112.50 £ 168.75 £ 47.50 £ 45.00 73.08% 66.67% 31 Falkirk Wheel – Canal £55.00 £57.50 D6 D4 £ 75.00 £ 100.00 £ 20.00 £ 17.50 36.36% 30.43% 32 Falkirk Wheel – Basin £84.50 £88.00 D4 D3 £ 100.00 £ 118.75 £ 15.50 £ 12.00 18.34% 13.64% 33 The Stables £37.50 £40.00 C7 C4 £ 68.75 £ 112.50 £ 31.25 £ 28.75 83.33% 71.88% 34 Southbank £100.00 £100.00 C4 C3 £ 112.50 £ 145.00 £ 12.50 £ 12.50 12.50% 12.50% 35 Other Sites £36.00 £37.50 various various £ 56.25 £ 56.25 £ 20.25 £ 18.75 56.25% 50.00%

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6.4 Union Canal

BSC LLP BSC LLP BSC LLP Current BSC LLP Potential BSC LLP Current BSC LLP Potential Location No. Union Canal 2013 (£) 2014 (£) Change v. Change v. % Change 2013 % Change 2014 Rating Rating Price Price 2013 2014 Union Union Canal 36 Harrison Park £56.00 £58.50 B6 B5 £ 87.50 £ 106.25 £ 31.50 £ 29.00 56.25% 49.57% 37 Leamington Wharf No Leisure B6 B5 £ 87.50 £ 106.25 £ - £ - 0.00% 0.00% 38 Edinburgh £121.50 £126.50 B4 B3 £ 125.00 £ 150.00 £ 3.50 -£ 1.50 2.88% -1.19% 39 Linlithgow £39.50 £41.50 D7 D6 £ 68.75 £ 75.00 £ 29.25 £ 27.25 74.05% 65.66% 40 Ratho 1 £61.00 £64.50 C7 C3 £ 68.75 £ 145.00 £ 7.75 £ 4.25 12.70% 6.59% 40 Ratho 2 £61.00 £64.50 C4 C3 £ 112.50 £ 145.00 £ 51.50 £ 48.00 84.43% 74.42% 41 Other sites £36.00 £37.50 various various £ 50.00 £ 50.00 £ 14.00 £ 12.50 38.89% 33.33% 7.0 Implementation

7.1 Consultation

It is the intention of Scottish Canals to use the findings of this report, the Matrix and the observations to consult with stakeholders on the introduction of a revised pricing policy.

BSCLLP have asked for basic facility costings at various locations, but Scottish Canals uses wider parameters on each canal network and it has not been possible to provide sufficiently detailed operational and return data to arrive at accurate ROC’s and Profit/ Loss accounts for even the major locations. BSCLLP believe that given the sizes of some of these facilities, and the current charging regimes, it is likely that many of the berthing facilities are losing money and are therefore a “tax” on other Scottish Canal Operations. The basis for the upward revision of berthing tariffs can ensure that canal berthing at least breaks even and preferably provides contributions to reinvest in additional facilities and canal upgrades. If all berthing operations lose money private sector investment will not be forthcoming and development on the canals will not be forthcoming.

In order to be well prepared and to “test” BSCLLP’s arguments it is necessary that Scottish Canals produce operational profit and loss accounts (including depreciation and group overheads) for the following:

At least one larger marina on each canal network (where it has marinas) South Bank Marina – projected P&L

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Grouped mooring facilities (cost centres). BSC LLP suggest that Scottish Canals group three or four sets of linear moorings in differing sections of the canals, maintained by local teams, and apply costs and incomes to them. This will arrive at a profit or loss assessment for the relevant mooring groups allowing them to assess contributions. Having understood the contributions for one group these can be used for supporting debate on tariff adjustments along the network.

Scottish Canals need also to consider the arguments supporting the higher charging regime, including the importance of private sector investment, the need for contributions from its own operations and the amount of investment required in berthing facilities to meet projected demand.

In reality Scottish Canals should be attempting, through consultation, to produce a sustainable business model for the entire network that meets demand, maintains the assets and encourages private sector investment.

In the process of developing the model, consultation plays an important role in managing expectations and hopefully avoiding bad publicity. In simple terms it is likely that:

Scottish Canals cannot convince the boating market of the necessity for price increases to encourage growth, maintain facilities and meet demand on the canals and as a result the assets will deteriorate and there will minimal expansion or stagnation The enlightened members of the boating community see the benefits of future expansion on the canals for them and support Scottish Canals’ new strategy which will lead to an improved product and a network within which the private sector sees opportunities to grow business. 8.0 Conclusion

Following publication of the draft report a further consultation meeting was held with the managers of each canal. Amendments to the format of the matrix were implemented and input from the managers regarding individual location pricing was instigated. We now consider that the pricing matrix is robust and with use will have the ability to rationalise any current and future pricing policies. Perhaps of most benefit will be its use in guiding future development and investment.

Overall the range of price changes covers minor price reductions (the assumption therefore is that current – 2014 - prices should be maintained) to 74%. The average price changes for each canal are shown below:

Location Lowest Change % Highest Change % Average% Change BSC LLP vs. 2014 Caledonian Canal 0.57% 48.69% 15.06%

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Crinan Canal -1.38% 13.14% 6.61%

Forth & Clyde Canal -0.57% 66.67% 30.79%

Union Canal -1.19% 74.42% 32.63%

It is evident that the largest percentage changes are located in the Forth & Clyde and Union Canal. These increases reflect the underdeveloped nature of the pricing structure in these locations in comparison to the more mature locations found on the Crinan and Caledonian Canal. Whilst some of these percentage changes may seem significant, closer review will show that the increases are being made from a very low charging base. In order to fairly price the Lowland Canals in comparison to the rest of the network, it has been necessary to create a separate ‘Lowland Matrix’. This matrix discounts from a lower headline rate against a simplified scale of variables to arrive at a suggested price. In time, as the Lowland network improves there will come a point when it can be incorporated into the standard pricing matrix. Both pricing matrixes are shown in Section 6.0 of the report.

The implementation of any new pricing strategy will require careful management with a focus on clear, concise information. We understand that the leisure pricing strategy is likely to be implemented alongside changes to transit and licence charges. Accordingly, there is an opportunity to instigate comprehensive structured change which will enable Scottish Canals to work towards sustainable operation of its canal network. 9.0 Appendices

Appended as separate documents

End

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Appendices

January 2014

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APPENDIX A: MARINA RESEARCH

EAST COAST & MORAYSHIRE

12 11

10 9

13

Map Reference Harbour/Marina 1 Royal Quays 2 St. Peter’s Basin 3 Eyemouth 4 Dunbar

5 North Berwick 8 6 Port Edgar 7 Anstruther 8 Tayport 7 9 Peterhead 10 Banff 11 Whitehills

5 12 Lossiemouth 13 Inverness 4 3

6

2

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CLYDE & WEST COAST SCOTLAND

18 1

2 15

17 Map Reference Harbour/Marina 1 Kerrera (Oban) 8 9 3 2 Craobh 4 3 Portavadie 10

4 Tarbert 7 5 Rothesay 5 6 6 Largs

7 Kip 11 8 Holy Loch 12 9 Rhu 10 James Watt Dock 14 11 Ardrossan 12 Troon 13 Stranraer

14 Campbeltown

15 Ardlui 13 Loch Lomond 16 Marina 17 Ardfern 18 Dunstaffnage

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ENGLISH & WELSH

9 9 P 8 E P 2 E 6 10 2 2 9 6 R P 2 D E R 2 D 6 2 R D 2 4

3

1 P E 5 2 P E 6 6 2 2 P 6 R E 7 2 D Map2 Reference Harbour/Marina 7 R 6 1 Brinklow Marina P D 2 2 Chirk Marina E R 3 Barton Marina 2 D 4 Aquaduct Marina 6 5 Bill Fenn Marina 2 6 Buckden Marina R 7 Evesham Marina D 8 Fallwood Marina 9 Ripon Racecourse Whitebear 10 Marina

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HOLLAND, FRANCE & SCANDINAVIA

7

6 7

8 P

1 7 E 7 P 2 P E 6 E 2 2 2 72 6 R P6 2 D 2 E R 3 4 2R D 7 Map Reference Harbour/Marina P6D P Amsterdam 5 o 1 E 2 Marina 3 R 2 The Hague 2 rt PdD 3 Port de l’Arsenal 6 o 4 Port De Roanne 2 e rt 5 Port D’Auxerre R L’ Sjötorp/Lake d 6 D A Vänern e rs 7 Karlsborg L’ e 8 Alabodorna A n

rsal e , nP ala , ri

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NORTHERN IRELAND & IRELAND

Map Reference Harbour/Marina Carrick Fergus 4 1 Marina 2 Bangor Marina 3 Dun Laoghaire 1 Ballycastle 4 Marina Lough Derg 5 5 Marina 6 Lakeside Marina 2 7 Poolbeg Marina

3

6 7

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APPENDIX B: PRICE COMPARISON

Rank Rate (£) Annual 2013 (per m) 1 Kip £ 399.00 2 Largs £ 380.00 3 Holy loch £ 366.57 4 Dun Laighoire Marina £ 348.00 5 Rhu £ 347.00 6 Evesham (wide) £ 346.32 7 Dunstaffnage £ 339.00 8 Portavadie £ 335.00 9 Ardfern £ 330.00 10 Troon £ 317.15 11 Kerrera £ 315.00 12 Ardrossan £ 315.00 13 Port de L'Arsenal £ 309.90 14 Craobh £ 300.00 15 James Watt Dock £ 294.70 16 Royal Quays £ 248.50 17 Bangor Marina £ 243.75 18 Port Edgar £ 236.80 19 Amsterdam Marina £ 233.00 20 Ripon (Wide) £ 232.70 21 Rothesay £ 232.50 22 Dun Laighoire Marina (West Bight) £ 232.00 23 Poolbeg Yacht Club £ 224.00 24 Carrickfergus Marina £ 220.00 25 Loch Lomond Marina £ 219.78 26 Ardlui £ 215.00 27 Buckden Marina £ 202.45 28 Tayport £ 198.00 29 Whitebear £ 192.00 30 St. Peters Basin £ 180.00 31 Ripon (Narrow) £ 179.00 32 Tarbert £ 175.57 33 Inverness Marina £ 175.00 34 Evesham (Narrow) £ 173.16 35 Ballycastle Marina £ 171.00 36 Ardrishaig Basin Dummy Lock £ 161.00 37 Crinan Basin Dummy Lock £ 161.00 38 Aquaduct Marina £ 159.50 39 Lossiemouth £ 158.40 40 Bellanoch Marina £ 156.00 41 Eyemouth £ 154.30

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42 Seaport Marina £ 147.00 43 Corpach £ 143.00 44 Dochgarroch West £ 142.50 45 Crinan Basin £ 140.50 46 Lock 14 Crinan £ 139.50 47 Bowling - Lower Basin £ 139.00 48 Bowling - Helenslea £ 139.00 49 Ardrishaig Basin £ 136.00 50 Lough Derg Marina £ 133.20 51 Dochgarroch East £ 130.00 52 Banff £ 129.76 53 Banavie £ 129.50 54 Corpach Reach £ 129.50 55 Barton Marina £ 127.31 56 Whitehills £ 127.00 57 Brinklow Marina £ 124.87 58 Chirk Marina £ 122.60 59 Fort Augustus (Top) £ 121.50 60 Edinburgh - Lochrin Basin £ 121.50 61 Cairnbaan Lock 5 £ 121.00 62 Campbeltown £ 121.00 63 Lock 4 Top £ 119.50 64 Bellanoch Bridge £ 115.00 Bellanoch Marina Swinging 65 £ 115.00 Moorings 66 Oakfield Bridge £ 115.00 67 Crinan Rings £ 110.00 68 Fallwood Marina £ 109.89 69 Laggan Top £ 109.00 70 Gairlochy £ 106.00 71 Edinburgh - Leamington Wharf £ 105.50 72 Kytra £ 102.00 73 Bowling - Upper Basin £ 101.50 74 Laggan Avenue £ 94.64 75 Peterhead £ 93.60 76 Glasgow - Spiers Wharf £ 84.50 77 The Falkirk Wheel - Basin £ 84.50 78 Stranraer £ 83.60 79 Auchinstarry £ 73.00 80 Grangemouth £ 65.00 81 Ratho £ 61.00 82 Edinburgh - Harrison Park £ 56.00 83 Anstruther £ 55.23 84 The Falkirk Wheel - Canal £ 55.00 85 Bill Fen Marina £ 46.40 86 North Berwick £ 41.40

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87 Linlithgow £ 39.50 88 Camelon - Lock 16 £ 37.50 89 The Stables, Kirkintilloch £ 37.50 90 Other sites £ 36.00

Scottish Canals Appendices

July 2016 59 Moorings Pricing Review