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Long Term Mooring Price Review for Sites Within the Kennet & Avon Group

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Long Term Mooring Price Review for Sites Within the Kennet & Avon Group RE-PRICING OF 12 MONTH MOORING PERMITS 2012 MARKET AREA REPORT FOR BERKS, WILTS & AVON Introduction This report provides the rationale for mooring price decisions for 2012. For explanation of the method and relevant policy, please see our public statement at www.britishwaterways.co.uk/media/documents/Moorings_Report_Overview_Report.pdf. Where prices are presented in this report, we indicate which VAT rate applies. VAT is payable at the rate set by the government for the date when the permit is purchased. Profiles of privately operated sites in the area are appended. We researched and compared their prices with the BW rates to inform our judgements, but because this data is commercially sensitive it has not been included. Local market overview The area covers the whole of the Kennet & Avon Canal from Reading (to the east) to Keynsham (to the west). It includes the urban environs of Reading Town, Newbury, Hungerford and Bath along with many smaller villages through rural countryside locations. The canal runs almost parallel with the A4/M4, making this canal readily accessible to boat owners throughout southern England. BW operates the following long term moorings on the canal, providing a total of some 160 berths. Site name Approx site capacity (berths) IDR Bridge 4 Tyle Mill 10 Kintbury 7 Hungerford 7 Great Bedwyn 28 Wootton Rivers 11 Bridge Inn Horton 7 Devizes Flight 15 Avoncliff 9 Murhill 3 Dundas 4 Claverton 19 Bathampton 17 Hanham Lock 1 Bradford Lock 1 Total capacity 143 Berks, Wilts & Avon 2012 Page 1 of 10 Supply assessment In addition to these BW long term moorings, there is a total of approximately 285 online and 713 offline basin or marina moorings offered by privately operators. Thus the total market comprises just over 1,000 berths. Caen Hill Marina was recently opened in October 2011 in Devizes, providing an additional 249 mooring berths. We expect to close around 24 of our directly managed berths within the twelve months as part of our online mooring reduction policy. There is also another marina development pending on the canal at Hungerford, which will provide 120 berths. The opening date is not expected before 2012. When it opens, we would expect to close around 12 of our directly managed berths within the twelve months as part of our online mooring reduction policy. Demand assessment. Most of the BW managed sites are at full capacity. Most marina and mooring operators in the area are reported to be full or near to full and only a few of the private sites and marinas who we contacted in autumn 2011 were able to supply information saying that there were vacancies available at their sites. The vacancies advertised using the auction system met with varying degrees of interest. Please refer to the table below for an analysis of all the auctioned mooring vacancies on the Kennet & Avon Canal. Analysis of auctioned vacancies (The prices shown in this table include VAT at 20%) Site Name Guide price Total vacancies Total Total sold Average price per metre advertised number above per metre of bids guide price following auction Avoncliff East £99.88 1 2 0 £82.36 Avoncliff West £99.88 2 7 1 £84.71 Bathampton £132.10 4 7 0 £95.15 10m or less Bathampton £132.10 5 20 2 £115.44 Above 10m Claverton £112.77 15 31 3 £102.05 Devizes Flight £2984.63 8 20 4 £2801.38 (per (per berth) berth) (per berth) Great Bedwyn £113.85 7 16 1 £100.31 (above) Hungerford £137.47 3 7 1 £112.56 IDR Bridge £79.48 2 2 0 £55.46 Kintbury £137.47 2 7 2 £146.46 Murhill £99.88 2 4 1 £95.62 Tyle Mill (above) £126.73 4 13 3 £129.21 Wootton Rivers £133.17 3 1 0 £99.85 10m or less Wootton Rivers £133.17 3 7 2 £129.81 Above 10m Berks, Wilts & Avon 2012 Page 2 of 10 Private operator reference sites We have identified the following privately operated mooring sites as being the most relevant to the BW sites for price comparison purposes:- Bath Narrowboats (Sydney Wharf) Bath Marina Devizes Marina Saltford Marina Foxhanger Wharf Frouds Bridge Marina Somerset Coal Canal Gibsons Boat Services Hilperton Marina Greenham Lock Marina Newbury Boat Company Aldermaston Wharf Reading Marine Company Southcote Moorings Burghfield Island Boat Club Pewsey Wharf Boat Club The Waterfront Pewsey Wharf West Mills Newbury Brief profiles of BW and these privately operated sites are summarised in an appended table. Challenges to Pricing Decisions We have made the pricing recommendations below based on thorough market research. It is our policy, set at Board level, to set prices which reflect market supply and demand and to compete fairly with private operators. BW has neither powers nor duty to provide subsidised moorings. If you feel that the price decision made for your mooring site is unjustified having read this report, we ask that you write to the National Moorings Manager explaining why you think it is the case. Please explain the reasoning for your challenge including evidence such as price and descriptions of nearby privately operated mooring sites. We will not amend the price without this evidence. We will consider your representation and respond in writing within two working weeks. If you are not satisfied with the response, you may request that the matter is dealt with through our formal complaints procedure. Berks, Wilts & Avon 2012 Page 3 of 10 Pricing Conclusions The table below summarises our site-by-site conclusions across the area. Prices include VAT at 20%. Price 2011 from Site Name Notes on pricing decision Price April 2012 Kennet & Avon Canal This is a very basic towpath mooring, which is set in an urban area. The site has never been at full capacity and we have only sold two of the mooring vacancies that were put to auction. Both vacancies were sold at the IDR Bridge £79.48 £79.48 reserve price. There has been very little interest in the auctioned moorings at this site, since 2009 when the price was also frozen. Hold price at current level. These moorings are currently at full capacity. There has been no churn of vacancies at this site, so we have no mooring vacancy analysis information to use. These towpath moorings are set in a pretty village location, with sanitary facilities located directly opposite the L1 mooring site. There has been a recent problem with the water Tyle Mill (below £126.73 £126.73 being cut off at this site (no fresh water, elsan or toilets) and so until this is resolved prices will be held. *These lock) will be reviewed during 2012-13* These moorings are currently at full capacity. There have been 4 vacancies sold at auction at this site, 3 of which have sold for above the guide price. The site benefits by being close by to the facilities on the other side of the lock and road bridge. These towpath moorings are set in a pretty village location. There has been a Tyle Mill (above £126.73 £126.73 recent problem with the water being cut off at this site (no fresh water, elsan or toilets), and so until this is lock) resolved prices will be held. *These will be reviewed during 2012-13* This site remains to be one of the most popular mooring sites on the K&A Canal and the moorings are currently at full capacity. There have been 2 vacancies sold at auction at this site, which have sold in excess of the guide Kintbury £137.47 £145.03 price. However, this site has been priced at a high percentage rate on previous price reviews and the rate recommended this time reflects the comparative mooring rates of private sites in the area which offer full facilities. Berks, Wilts & Avon 2012 Page 4 of 10 Price 2011 from Site Name Notes on pricing decision Price April 2012 These moorings are set on the off-side behind the houses on Canal Walk in Hungerford town centre. There have been 3 vacancies sold at auction at this site, only 1 of which was sold above the guide price. The Hungerford £137.47 £137.47 moorings' environment and condition of the landing staging and access path has deteriorated and to date has received no investment. This site is located on the off-side in an attractive village environment, within easy reach of the facilities located on the visitor moorings directly opposite. The village has a wide range of local shops and pubs and the train Great Bedwyn station is also close by. There has been no churn of vacancies at this site at the time of this study, so we have £133.17 £139.83 (below) no mooring vacancy analysis to go by. The site remains at full capacity. Improvement works have been undertaken to the wooden landing platforms on this site. This site is located above the lock on the off-side, close to Great Bedwyn village. There are no facilities directly available for moorers at this site, but the visitor mooring facilities are located just below the lock. The overall standard of the site has deteriorated in recent years with a poor muddy access path, poor bank edging and Great Bedwyn £113.85 £114.99 silting problems which have restricted the potential to fill all the available mooring berths. Despite these issues, (above) there has still been great interest in the 7 mooring vacancies sold at auction at this site, with 6 sold above the reserve price and 1 vacancy being sold above the guide price.
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