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Re-Pricing of 12 Month Mooring Permits 2012 Market Area

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RE-PRICING OF 12 MONTH MOORING PERMITS 2012 MARKET AREA REPORT FOR GLOUCESTERSHIRE & WORCESTERSHIRE 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. 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 This area comprises the River Severn as far as Stourport and the Gloucester & Sharpness Canal from Gloucester southwards to Sharpness where the canal locks out onto the River Severn estuary to the Bristol Channel. Coastal and wider boats can be accommodated along this stretch of the network. The area also includes the Worcester & Birmingham Canal as far as Hopwood Tunnel and the recently opened Droitwich Canal, offering a variance of interesting and pretty cruising rings. Never far from the M5, the navigations offer a convenient and attractive option for boat owners living throughout the South West as well as the Midlands. BW does not have any directly managed moorings on the River Severn. BW operates the following sites in the area:- Site name Site capacity (berths) Gloucester & Sharpness Canal Alexandra Quay 2 Llanthony Pontoons 4 Monk Meadow 40 Sellars Bridge 10 Parkend 10 Saul Junction 20 Fretherne North 9 Fretherne South 6 Splatt 19 Patch 18 Purton 11 Worcester & Birmingham Canal Tibberton 12 Dunhampstead 4 Tardebigge 11 Bittell Reservoir 13 (2 x Residential) Droitwich Canal Netherwich Basin 10 Hanbury Wharf Arm 5 Staffordshire & Worcester Canal Gloucestershire & Worcestershire 2012 Page 1 of 9 Stourport Upper Basin 1 (Residential) Stourport Upper Pontoons 32 Stourport Lower wide-beam 9 (2 x Residential) Stourport Lower Pontoons 14 Total capacity 260 Supply assessment In addition to these BW long term moorings, there are approximately a total of 2040 online and offline linear, basin and marina mooring berths in this market area. The total market comprises of approximately 2300 berths. Droitwich Spa Marina is due to open in spring 2012, supplying some 238 new berths on the Droitwich Canal (included in the above supply estimate). As a result of this BW will need to reduce online moorings by 23 as part of the OLMR policy within twelve months of the marina opening. This will be achieved through natural wastage – we will not advertise vacancies when mooring permits are not renewed. Demand assessment Most BW sites are at full capacity and we are generally seeing steady results from auctioned vacancies (see below). Mooring operators on the River Severn reported that they had some vacancies available at the time of our research. Analysis of auctioned vacancies The table below summarises the results of auctions from October 2009 until July 2011. More recent results can be found on www.bwmooringvacancies.com. (The prices shown in this table include VAT at 20%) Average Guide Total price £ per No. of Total sold > Site Name (current) £ per vacancies metre bids guide price metre advertised following auction Llanthony £128.88 11 3 0 £92.82 Pontoons Monk Meadow £777.57 (per £553.57 (per 23 21 0 8m berths berth) berth) Monk Meadow £1759.20 (per £1269.11 23 146 1 18.5m berths berth) (per berth) Monk Meadow £1908.49 (per £2227 (per 1 4 1 20m berths berth) berth) Sellars £111.69 11 31 1 £89.00 Parkend £111.69 5 31 0 £86.98 Saul £128.88 17 204 1 £100.19 Fretherne North £111.69 8 2 0 £78.76 Fretherne South £119.22 5 24 1 £92.83 Splatt £133.17 5 81 1 £104.48 Patch £119.22 6 32 1 £93.21 Purton £133.17 4 18 0 £100.14 Tibberton £93.43 13 13 0 £74.21 Dunhampstead £93.43 11 3 0 £67.04 Tardebigge South £125.66 3 38 1 £123.71 Bittell (non elec) £110.62 3 9 0 £89.11 Gloucestershire & Worcestershire 2012 Page 2 of 9 Average Guide Total price £ per No. of Total sold > Site Name (current) £ per vacancies metre bids guide price metre advertised following auction Bittell (elec) £119.22 1 23 1 £171.67 Stourport Upper £128.88 8 17 1 £102.06 Pontoons 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: Sharpness Marine Saul Junction Marina Saul Junction Boat Owners Association Slimbridge Boat Station Victoria Basin (BWML) Tewkesbury Marina Bredon Marina Lower Lode Hotel Upton Marina Stourport Marina Droitwich Spa Marina Alvechurch Marina (ABC leisure) Worcester Marina (ABC leisure) Diglis Basin (BWML) A comparison of key characters of the BW and reference sites is shown in the appendix. 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. Gloucestershire & Worcestershire 2012 Page 3 of 9 Pricing conclusions The table below summarises our site-by-site conclusions across the area. Prices include VAT at 20%. 2011 Price from Site Name Notes on pricing decision Price April 2012 These moorings are in a prime location within the Gloucester Docks. They accommodate two hotel boats which are operated by Aleandra Quay £139.63 £141.01 English Holiday Cruises. In the past these moorings have had quite significant price increases, making them the most expensive moorings on the G&S Canal, therefore a nominal price increase will be implemented in 2012-13. There are only 5 mooring berths at this site and turnover has been low. We have sold 3 out of 11 mooring berths advertised at this site and a number of these berths were advertised more than once before the vacant berth was filled. All of these 3 vacancies were Llanthony Pontoons £128.88 £128.88 sold at the reserve price. This site is priced much lower than the nearby BWML moorings in Victoria Basin, where there are vacant mooring berths which they seem to have difficulty in filling. Monk Meadow (per berth) These mooring berths have been difficult to auction since the last mooring price review. There is a high turnover of boats on these 8m £777.57 £777.57 moorings. We have sold 7 out of 23 mooring berths advertised at this site. Some of the berths were advertised a number of times before the vacancies were filled. Out of the 7 berths sold, 5 were sold at the reserve price and two were sold slightly higher than the reserve price. These mooring berths had been difficult to auction since the last mooring price review (when the mooring price was reduced). However, the site is now at full capacity. There were 18 mooring berths sold through the mooring auction process. Some of the berths were advertised more than once before the mooring berth was filled. Out of the 18 vacancies sold, 10 were sold at the reserve price, 8 were sold above the reserve price and 1 vacancy received bids in excess of the guide price. The site offers no facilities on 18.5m £1759.20 £1759.20 site for mooring customers, and therefore should be priced slightly lower than the nearby competitor moorings which offer more in the way of facilities and where there are mooring vacancies at the moment. There are only three 20m mooring berths on these pontoons and turnover has been low, although interest in this size of mooring vacancy has been very much sought after. We have sold 1 mooring vacancy, which generated 4 bids and the berth was sold much 20m £1908.49 £1908.49 higher than the guide price. However, as this mooring site offers no facilities on site for mooring customers, I would only recommend that the price remains unchanged. This mooring site is situated close to Hardwicke & Quedgeley housing estates. The site has access to a shared water point and Sellars Bridge £111.69 £111.69 refuse facilities. We have sold 6 out of the 11 mooring vacancies advertised at this site. A number of the berths were advertised more than once before the berths were filled. Out of the 6 berths sold; 3 were sold at the reserve price and the other 3 were sold Gloucestershire & Worcestershire 2012 Page 4 of 9 above the reserve, but only 1 vacancy attracted bids above the guide price. There are no plans for future improvements to this site and so the price remains unchanged. This is a basic towpath mooring site that only offers shared refuse facilities for mooring customers. It’s about 3 km away from the Parkend Bridge £111.69 £111.69 nearest facilities at Saul. We have sold 3 mooring berths here: 2 were sold at the reserve price and 1 vacancy was sold slightly higher than the reserve. These moorings remain fairly popular due to their off-side location and their amenity to services and facilities at the mid-way point of the G&S canal.
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