Western Isles Ferry Services
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TRANSPORTATION AND INFRASTRUCTURE COMMITTEE 24 SEPTEMBER 2014 WESTERN ISLES FERRY SERVICES Report by Director of Technical Services PURPOSE OF REPORT To provide the Comhairle with an update on matters associated with the delivery of ferry services to and within the Western Isles. COMPETENCE 1.1 There are no legal, financial, equalities or other constraints to the recommendations being implemented. SUMMARY 2.1 A further meeting of the Outer Hebrides Ferries Task Group was held on 26 June 2014 and a copy of the draft minute and an update on progress against each of the key actions are included as Appendices 1 and 2 to the Report. 2.2 Progress is being made by CalMac with regard to the specification and procurement of a replacement on-line booking system and a copy of CalMac’s press release of 19 August 2014 is included as Appendix 3 to the Report. The contract for the development and delivery of “a state-of-the-art ticketing and booking system” has been awarded by David Macbrayne Ltd, as CalMac’s parent company, to Worldline, a specialist in online transactions, in collaboration with Hogia, the “largest provider of IT systems for ferry and sea freight operators for the European transport market”. The roll-out of the new system by CalMac is scheduled for late 2015. 2.3 Representations to the Minister for Transport and Veterans regarding a number of concerns associated with ferry services to and within the Western Isles continue and considerable effort is being made to improve working relationships between, on one hand, the Comhairle and HITRANS and, on the other, Transport Scotland, CalMac Ferries Ltd and Caledonian Maritime Assets Ltd (CMAL). 2.4 Following on from the use of a routes and services methodology in the development of the Scottish Ferries Plan, Transport Scotland and CalMac are now undertaking a detailed analysis of demand and capacity, the outputs of which are to inform vessel deployment and replacement strategies being delivered as part of the implementation of the Plan. 2.5 There are growing concerns that the current engagement and consultation arrangements provided for in the Clyde and Hebrides Ferry Services (CHFS) Public Service Contract are neither effective nor efficient. Alternative arrangements are being developed and proposed by HITRANS in consultation with its constituent authorities and partners, Transport Scotland and CalMac and it is essential that this be considered in the context of the separate but complementary proposal to establish a joint Islands transport forum arising from the “Empowering Scotland’s Island Communities” publication. 2.6 The work of the Ferry Freight Fares Working Group continues. The Report provides a summary of the work carried to-date and that to be carried out over the next several months. It is envisaged that the findings and initial draft reports prepared by consultants appointed by Transport Scotland will be available by November 2014. RECOMMENDATION 3.1 It is recommended that the Comhairle note the Report. Contact Officers: Iain Mackinnon, Director of Technical Services; Tel 01851 822656 and ext 211466 Background Papers: None Appendices: 1 OHFTG – Minute of Meeting 26 June 2014 2 OHFTG Action Plan – Progress Update (1 September 2014) 3 CalMac Press Release re Replacement On-Line Booking System (19 August 2014) 4 Letter to Keith Brown MSP (30 June 2014) 5 Letter from Keith Brown MSP (21 July 2014) 6 Ferry Users Groups – Proposed Revised Terms of Reference 7 Ferry Freight Fares Working Group – Criteria for the assessment of options OUTER HEBRIDES FERRIES TASK GROUP 4.1 Following the inaugural meeting of the Outer Hebrides Ferries Task Group on 11 March 2014, a number of actions are being pursued by the Comhairle and other members of the Group. 4.2 It was agreed that the overarching remit of the Group was: “To develop and implement a coordinated, structured, fully-informed and evidence-based strategy to engage with Scottish Ministers, Transport Scotland, Caledonian Macbrayne (CalMac), Caledonian Maritime Assets Ltd (CMAL) and other relevant stakeholders seeking to improve the standard, the capacity and the affordability of ferry services to the Outer Hebrides ensuring the demands and aspirations of all sectors of the community are met”. 4.3 The main areas of action and lobbying relate to: The specification, procurement and commissioning of an improved on-line booking system The provision of increased capacity on Stornoway/Ullapool, Tarbert/Lochmaddy/Uig and Lochboisdale/Castlebay/Oban routes The clarification of the proposed timetabling and allocation of vessels on the Stornoway/Ullapool route following the introduction of MV Loch Seaforth The reconsideration of the scheduling of the Lochboisdale/Mallaig pilot service The submission of a formal representation to and secure meeting(s) with Scottish Ministers and Transport Scotland to consider and address positive outcomes with the above areas. 4.4 A further meeting of the Task Group was held on 26 June 2014 and a copy of the draft Minute of that meeting is included as Appendix 1 to the Report. An update on progress associated with each of the key tasks is included as Appendix 2 to the Report and, from this, it can be seen that considerable efforts continue to be made and progress is being achieved in most if not all the key areas. 4.5 Progress is being made by CalMac with regard to the specification and procurement of a replacement on-line booking system and a copy of CalMac’s press release of 19 August 2014 is included as Appendix 3 to the Report. The contract for the development and delivery of “a state-of-the-art ticketing and booking system” has been awarded by David Macbrayne Ltd, as CalMac’s parent company, to Worldline, a specialist in online transactions, in collaboration with Hogia, the “largest provider of IT systems for ferry and sea freight operators for the European transport market”. The roll-out of the new system by CalMac is scheduled for late 2015. 4.6 Representations to the Minister for Transport and Veterans on the matter of ferry services to and within the Western Isles continue and copies of the most recent letter to Mr Brown, dated 30 June 2014, and his response, dated 21 July 2014, are included as Appendices 4 and 5 to this Report respectively. 4.7 The meeting of 24 July 2014 suggested in Mr Brown’s was attended by the Director of Technical Services and Ranald Robertson, HITRANS Partnership Director and although their attendance was not as “representatives of the Outer Hebrides Ferries Task Group”, the meeting, also involving senior representatives of Transport Scotland, CalMac and CMAL, was productive in a that it provided another opportunity for the views and the concerns of communities, customers and users of ferry services to be put across to these bodies and for them to respond, in part at least, to them. 4.8 The primary areas of discussion were: Demand and capacity issues across the network; Current engagement and consultation arrangements as provided for in the Clyde and Hebrides Ferry Services Contract and the need for improvement in their effectiveness and efficiency; The need for an improved working relationship between, one hand, local authorities and HITRANS and, on the other, Transport Scotland, CalMac and CMAL; and The timetable and milestones associated with the construction, delivery and commissioning of the MV Loch Seaforth on the Stornoway Ullapool route. 4.9 An important aspect of the above and subsequent discussions, and following on from the meeting with the Minister for Transport and Veterans of 12 June 2014, has been the need to provide solid and robust evidence based arguments to demonstrate if and where capacity issues do exist and, where necessary, to identify and appraise options for the provision of additional capacity, either through the revisiting of timetables, the improved management of demand and/or the reallocation of vessels, or allocation of additional vessels, on affected routes 4.10 Whilst there may be commercial and logistical arguments that capacity issues will always exist at peak times, the growing incidence of constrained capacity on a large number of routes during longer peak periods remains of concern. 4.11 It was clear that, in developing the Scottish Ferries, the “routes and services” methodology used, details of which are available using the following link: http://www.scotland.gov.uk/Publications/2010/06/17134612/8, was very much a “high level” approach comprising six main steps: a. Define the community's current and future needs, relative to other communities. b. Define the ferry service required to meet these needs. c. Define current service and associated issues. d. Define gaps on the basis of (2) and (3). e. Consider options to address gaps f. Prioritise future spending. 4.12 A more detailed analysis of demands and capacities on these routes is being undertaken by Transport Scotland in consultation with CalMac and CMAL. Not only will this reassess demands, increasing or otherwise, following the “snapshot” of the situation in 2009 and 2010, but will also inform vessel deployment and replacement strategies being delivered as part of the implementation of the Scottish Ferries Plan. 4.13 A review of what research and studies are being undertaken and by which stakeholder is being carried out in consultation with Transport Scotland to avoid duplication of effort and to identify any “gaps” in what is being and needs to be done. 4.14 At the time of writing, it appears that there remains a need for further research investigating the socio-economic impact of ferry services which, for whatever reason, are constraining sustainable growth in sectors such as tourism and shellfish and finfish production and processing. It remains the proposal that HIE and OHTIA, in collaboration with other relevant stakeholders, take the lead in carrying out this research.