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Argyll & Bute Council Strategic Policy Committee

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Argyll & Bute Council Strategic Policy Committee ARGYLL & BUTE COUNCIL STRATEGIC POLICY COMMITTEE TRANSPORTATION & PROPERTY 8 NOVEMBER 2001 FEASIBILITY STUDY – POTENTIAL IMPROVEMENTS TO FERRY SERVICES TO ISLAY AND JURA 1. SUMMARY The purpose of this report is to seek Members approval to enter into a partnership with Highlands and Islands Enterprise and Argyll & Isles Enterprise to jointly commission independent research into potential improvements to ferry services between the mainland and the islands of Islay and Jura. The estimated cost of the study is £15,000 of which a contribution of £5,000 is sought from Argyll and Bute Council. A copy of the draft brief in connection with the study is attached for reference. A Gow Director of Transportation & Property 31 October 2001 F:\moderngov\data\published\Intranet\C00000188\M00000526\AI00001116\FeasabilityStudyIslaytoJura0.doc Draft Brief for Consultants Appraisal of Potential Improvements to Ferry Services to Islay and Jura Introduction Highlands and Islands Enterprise (HIE), Argyll and the Islands Enterprise (AIE) and Argyll and Bute Council (ABC) wish to commission independent research into potential improvements to ferry services between the mainland and the islands of Islay and Jura. Background Islay is presently served by a sea route from Kennacraig to the island ports of Port Ellen and Port Askaig. The shipping operator is Caledonian MacBrayne. Jura can presently only be reached by travelling via Islay. The length of sea crossing is such that the service frequency and crossing times on the current service are poor compared with west cost islands of a similar population. There has been considerable interest over the years in potential changes to the way in which ferry services operate from the mainland to Islay and Jura. In particular, there has been interest in introducing an “overland” route to Islay by offering a short sea crossing between the mainland and the east of Jura with onward travel to Islay being via the ferry service operating between Feolin (Jura) and Port Askaig (Islay). Despite, however, the potential benefits this could bring, the project has now advanced beyond concept stage. Over the years, research has been undertaken into a number of aspects of ferry services to Islay. However, it is a considerable period of time since the last comprehensive study was undertaken. To this end, the partners wish to commission such a piece of research having regard to: • The relatively poor frequency of service offered between the mainland and Islay and Jura; • Apparently growing capacity constraints on the existing Kennacraig – Islay service. Objectives of the Commission The overall objective is to produce an independent financial and operational appraisal of a number of options for enhancing ferry services between the mainland and Islay/Jura. The options that we wish to test are as follows: 1. Replacement of the existing vessel with one of greater capacity operating as at present between Kennacraig and Port Ellen/Port Askaig. The study should consider the implications of such a vessel for infrastructure investment at each of the three ports presently used. 2. Retaining the existing concept but seeking to achieve significant improvements in provision through the use of more than one vessel on the Kennacraig-Islay service or the use of fast craft. F:\moderngov\data\published\Intranet\C00000188\M00000526\AI00001116\FeasabilityStudyIslaytoJura0.doc 3. Short Sea Crossing. This would involve the introduction of a short sea crossing between the mainland and Jura. It will be necessary to test a number (probably two) of sub-options with varying landfalls on the mainland and on Jura. This option should also encompass consideration of the required nature and level of service for commercial vehicle and other traffic between Kennacraig and Islay, as well as consideration of the implications of this option for capacity on the ferry service between Islay and Jura. 4. In addition, the consultants should also analyse, based on carryings data, the extent of capacity constraints on the existing Kennacraig-Islay service and the growth in these if a “do nothing” approach was to continue. The analysis should cover: • Capital costs of vessel acquisition/leasing; • Capital costs of investment in shore infrastructure and roads and a general commentary on the physical feasibility of each of the options; • Operating revenues and costs. In the case of the alternative short sea crossing agreement will need to be reached between the consultants and the Steering Group as to the fare levels to be tested as part of that particular option. • The implications for annual operating subsidy from national government and the Local Authority These items should be brought together in the form of a financial appraisal for each option and sub-option using discounted cashflow techniques. At this time it is not anticipated that an economic appraisal is required and that this will be the subject of a subsequent exercise should this be appropriate. Method As stated earlier, a significant amount of previous research has been undertaken and it is expected that the appointed consultants will make full use of this. Relevant reports will be made available to them. The main areas where new research is required relate to capital costs (both vessels and shore infrastructure) and vessel operating costs. The research will be desk-based and it is not anticipated that any new surveys of users will be required. However, a small number of consultations are required. The bodies to be consulted will be agreed during the study but we presently expect them to include: HIE, AIE; ABC including Elected Members representing communities affected on the islands and also on the mainland; Community Councils, the company presently promoting the overland route; Caledonian MacBrayne and the Scottish Executive. Where consultants do not have all the requisite specialisms in-house it is expected that these will be contracted in and managed by them as part of the overall study. F:\moderngov\data\published\Intranet\C00000188\M00000526\AI00001116\FeasabilityStudyIslaytoJura0.doc .
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