Steamship Shieldhall – Steaming Towards a Resilient Future

Steaming Towards a Resilient Future

LOCATION OPTIONS STUDY & BUSINESS PLAN CONSULTANT

Professional Services Brief

The Solent Steam Packet Ltd

Steamship Shieldhall- Steaming Towards a Resilient Future

1 Introduction

The Solent Steam Packet (TSSP) has been awarded a Resilient Heritage grant by the National Lottery Heritage Fund (NLHF) towards the costs of our latest project, Steamship Shieldhall – Steaming towards a Resilient Future.

As a key part of this work (TSSP) wishes to appoint a consultant to undertake a Locations Options Study and to develop a new 5-year Business Plan as part of the next phase of our development. The scope of the Locations Options Study and Business Plan is set out in section 4 below.

The successful consultant will be appointed on a consultancy basis and will be responsible for their own tax reporting. The consultant could be a suitably experienced individual, company or association of individuals.

Steamship Shieldhall is located at 110 Berth, Western Avenue, Western Docks, Southampton, S015 0HH.

The Steamship Shieldhall – Steaming towards a Resilient Future project is described in greater detail in Section 3.0.

1.1 Steamship Shieldhall

The steamship Shieldhall is the country’s last and largest operational steam-powered cargo and passenger ship. Shieldhall is unique and of recognised national significance as one of just 200 vessels forming the National Historic Fleet. As a member of the Fleet she is acknowledged by National Historic Ships as being of pre-eminent significance, providing an insight into the UKs maritime history and technology and meriting the highest priority for long term preservation. In 2009 Shieldhall was the first ever recipient of the National Historic Ship’s Flagship of the Year award.

Built by Lobnitz & co Ltd of Renfrew in 1955 for the Glasgow Corporation, she was constructed to the classic lines of a pre-World War 2 steam ship, more evocative of the 1920s than the 1950s. She is, therefore, an important connection with steam ships and the Merchant Navy of the pre-WW2 era. Over 80m in length and a gross tonnage of 1,792, she has two scotch boilers and two triple-expansion steam engines which drive her twin screws.

Shieldhall was built for the specific purpose of carrying sewage sludge for disposal at sea. However, following a unique tradition of the Glasgow Corporation, she was

The Solent Steam Packet Ltd designed to carry a second, very different cargo - day passengers - on her runs to sea and so her design also incorporates passenger accommodation.

Between 1955 and 1976 Shieldhall transported her sewage sludge cargo from Glasgow to the limits of the Clyde for discharge into deeper water. In 1976 she was sold to Southern Water, who operated her out of Southampton until 1985 when rising fuel costs and new legislation made her unviable to continue to run.

Her heritage value was recognised and she was rescued from the scrapyard and eventually purchased by the Solent Steam Packet in 1988. TSSP returned her to operational condition in 1991 and since this time she has been taking passengers on board for a unique programme of steam-powered excursions.

1.2 The Solent Steam Packet

TSSP was formed when Steamship Shieldhall was laid up by Southern Water in 1985 and a number of passionate enthusiasts joined forces with Southampton City Council to save her from the scrapyard. This group of enthusiasts established TSSP with the express purpose of purchasing Shieldhall and preserving her for future generations.

Since taking ownership of Shieldhall in 1988 TSSP has returned her to operational condition and continues to maintain and operate her, opening her to the public and providing opportunities for volunteers to maintain and crew the vessel.

The overarching objective of TSSP is:

To restore, maintain, exhibit and operate SS Shieldhall for the benefit of the public

TSSP is an entirely volunteer-led, membership organisation. It has no paid members of staff and all activities, at all levels, are carried out by committed and energetic volunteer members.

The organisation has a membership of around 800 people, of which around 60 currently take an active role. From day-to-day ship maintenance and repair, to manning the shop, financial management, crewing and setting operational strategy, the dedicated volunteers give willingly of their time and expertise to keep Shieldhall afloat and operational.

We now consider that we are at a significant stage in TSSP’s development, moving the organisation and the ship on from being an enthusiast’s “hobby” to maintaining an important maritime heritage asset and developing our position as one of the South Coasts tourist attractions at the same time as meeting our ambitions for community engagement.

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Current Organisational Structure

The Solent Steam Packed Limited is a Community Benefit Society recognised by HMRC as an exempt charity for tax purposes. The Community Benefit Society is governed by an Executive Committee, drawn from the membership. The Society owns Shieldhall and has overarching responsibility for the ship and her future. It also deals with memberships and income from donations, grants etc.

There is also a trading company, The Solent Steam Packet (Services) Ltd, which is a private company limited by guarantee. The trading company is VAT registered and governed by a board of directors. The trading company is responsible for operational matters and for income from trading activities (tickets for sailings, private hires, etc). Profits from the Solent Steam Packet (Services) Ltd are covenanted to The Solent Steam Packet Limited. There is also a second trading company, Shieldhall Catering, whose profits are also passed to the Community Benefit Society.

TSSP (Services) Ltd Private Limited Co. TSSP Limited Community Benefit • Day-to-day operation Society PROFITS • Trading activities • Events • Owns SS Shieldhall • Strategic Planning

• Membership Shieldhall Catering Ltd • Fundraising Private Limited Co. • Catering

As part of the project we are likely to move to become a Registered Charity with a single associated trading company.

2.0 Challenges

Shieldhall’s future is now at risk. Since her purchase in the 1980s, TSSP has benefited from the generosity of Associated British Ports through provision of a free berth in Southampton Docks. For many years this has been at berth 48 – an ideal location for easy passenger boarding, parking and excellent for Shieldhall’s profile, since everyone coming to or from Ocean Terminal could see her.

New priorities at ABP have seen our main mooring point move to Berth 110; located at considerable distance from any of the dock gates in an unattractive and industrial part of the docks with no income generation as public access is not allowed. Continued passenger pick-up from various berths within the Docks, has allowed us to maintain our core excursion programme (and main source of income), albeit with additional berth moves from 110 to the pick-up berth, but proposed new developments in Southampton place even this at risk. We are now at a point where we must consider

The Solent Steam Packet Ltd the feasibility of alternative operating locations / areas, including ports in other parts of the country.

Revenue from passenger excursions is absolutely fundamental to our annual income and with this now at risk we must face the very real possibility that operating out of Southampton could become unfeasible. A shift to another port would be a challenging prospect but it is vital that the possibility of other locations and other ways of operating be fully explored and the risks, challenges, opportunities and benefits understood.

In 2017, TSSP completed the £2 million Heritage Lottery Fund-funded Saving Shieldhall project. The project saw vital capital works undertaken alongside improvements to make Shieldhall more attractive as a venue for corporate and event bookings. We also began to develop closer links with community, arts and educational organisations to bring new audiences on board including schools and youth groups.

As a result, 2017 was our most successful year ever with a significant increase in visitor numbers and the beginnings of a programme of corporate and event bookings to improve and diversify our revenue streams. The subsequent enforced shift to an inaccessible and unattractive berth has undermined these successes and placed Shieldhall’s future at risk. We need to re-examine the possibilities for diversifying our income and maximise the opportunities that the ship and facilities on board present.

On a year-on-year basis TSSP’s income largely covers operational and general maintenance costs. As our historic ship becomes older, however, the need for more extensive and more costly one-off repairs increases. At the same time the increasingly complex requirements of the Maritime and Coastguard Agency(MCA), who oversee the ship’s operational capability and safety, will place a growing financial burden on TSSP as we have to make changes in order to comply with new regulations for passenger vessels.

Our regular income from passenger excursions and memberships alone cannot keep pace with these increasing costs. Identifying alternative means of generating income is, therefore, fundamental to establishing a sustainable future for Shieldhall.

3.0 Resilient Heritage Project

In order to address the issues identified, we have been successful in securing a Resilient Heritage Grant from NLHF in order to:

1. Commission a Locations Options Study and 5-Year Business Plan. The options study will explore whether Southampton remains the right location for Shieldhall in light of the existing challenges our current berth presents. This piece of work will need to identify potential alternative locations from which the ship could operate and thoroughly explore the benefits, challenges, risks

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and opportunities of relocation. Alongside and building on the Options Study is the need for a forward business plan for Shieldhall based on a situation review, understanding of ongoing costs, market analysis, research into potential new income streams and new audiences. 2. Commission a Governance Review and Succession Plan to ensure that the right people, policies and processes are in place to implement and maximise opportunities identified through the Business Plan. This will include recruiting a new chairman and members to fill identified gaps. The successful consultants will also be expected to deliver training on good governance, key aspects of strategic planning and management, recommendations on business plan monitoring and review. We will take a critical look at our current organisation structure and make recommendations regarding how it could be changed to maximise efficiency and any tax benefits. 3. At the end of the work we will deliver a networking and learning event for charitable/not-for-profit organisations operating historic vessels. We also hope that the outcome will benefit the sector as a whole. 4. Undertake Volunteer training to meet the future needs of our organisation in promotion, marketing, events management; archiving and fundraising with the latter leading to establishment of a Fundraising Committee and development of an in-house fundraising capacity.

This brief relates specifically to item 1 above, the Locations Options Study and Business Plan.

4.0 Location Options Study and Business Plan - Scope

As highlighted in Section 2 above, TSSP is currently faced by a number of significant challenges to our ability to continue to maintain and operate Shieldhall. We are seeking to appoint a consultant who is willing to work hand-in-hand with our committed team to explore the options and opportunities that will, ultimately, shape a financially sustainable forward plan for Steamship Shieldhall.

At its simplest, we need help from an appropriately experienced consultant(s) to answer the question ‘where should we be located and what should we do?’ to establish a sustainable future for Shieldhall.

We do not wish to be overly prescriptive in setting out how the commission should be delivered and would welcome the consultant’s advice and input into structuring of the work. Nonetheless, our initial thinking as to how the work might be delivered is as a Locations Options Study and Business Plan, with potential steps for carrying out the work outlined below:

• Identify and investigate options for the future location of the ship. This piece of work will need to consider potential alternative locations for the ship across the UK as well as reviewing the implications of remaining in our current location. The

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work should consider the opportunities, challenges, strengths and risks of the options. • The consultant will need to liaise closely with TSSP to understand the operational requirements of Shieldhall since this will have implications for suitability of ports. • The implication of new locations for volunteering will need to be taken into consideration • Where appropriate meet with relevant representatives of ports/docks/others in potential new locations to understand opportunities and constraints. • Meet relevant Southampton-based organisations/individuals to understand the implications of remaining in our current location • Review current organisational activities and finances. • Revisit the activities/opportunities that had begun to be developed under the earlier Saving Shieldhall project (eg conference/meeting use, events etc) and provide recommendations for how these opportunities can be taken forward. • Consider other opportunities for revenue generation. • Explore whether there are other operating models (for example, employment of paid staff) which could contribute towards future sustainability. • Undertake market analysis, research into potential new income streams and new audiences in order to consider the business plan implications of the most likely future locations, including Southampton. • Participate in visits and meetings with other historic ships organisations (and potentially other passenger vessel operators or heritage sites) to share experiences and learning in relation to business planning and operational models to learn from the experience of others. • Attend the end-of-project networking and learning event with other not-for-profit historic ships organisations. The consultant should be willing to participate and if deemed appropriate, give a presentation about the learning from the Options Study and Business Planning work. • Allow for up to 4 post project meetings to assist with initial implementation of the recommendations of the business plan.

The output of this work will be a Locations Options Study and associated 5-year Business Plan which fully consider the potential benefits, challenges, opportunities and risks of locations, activities and operating models and makes recommendations for the most appropriate ways forward for TSSP and Shieldhall.

Expectations

We are specifically seeking a consultant(s) who will be willing to work in close partnership with members of the TSSP team, drawing on our existing knowledge and experience and the considerable amount of thinking that we have already done about new locations and opportunities for revenue generation. It is crucial that the consultant is willing to work in a collaborative way with TSSP.

The appointed consultant is expected to be willing to travel to Shieldhall at her berth in Southampton as frequently as is necessary to effectively carry out this commission.

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We anticipate that this work will include a number of exchange visits and meetings with other historic ships and heritage sector organisations. We would anticipate that in many cases these will be joint visits/meetings attended by both the consultant and members of the TSSP team.

The Options Study and Business Planning work will take place alongside a Governance Review and Succession Planning exercise (subject of a separate commission). The Business Plan and Governance Review consultants will need to take into consideration the emerging implications and priorities arising from one another’s work and to liaise with each other as appropriate.

We are more than happy to receive tender from consultants who wish to tender for both pieces of work.

Experience & Qualities

Essential The successful consultant must be able to demonstrate suitable experience and skills in the following areas:

• Extensive experience of options appraisals and business planning, including for the not-for-profit sector. • Understanding of the visitor attraction and/or tourism sectors. • Experience of developing sustainable income generation strategies and the roll out of these plans. • An existing awareness of the constraints of operating in the maritime sector (or a strategy for developing this knowledge and applying it to the commission).

Desirable • Previous experience and an understanding of the maritime or historic ships sector. • An understanding of the heritage sector. • Experience of working with volunteer-led organisations.

Note that the successful consultant will not be an employee of the TSSP and will be responsible for their own tax reporting.

5.0 Fees and timescales

Fee There is a maximum fee for this work of circa £25,000 (excl VAT) including all usual and reasonable expenses but excluding VAT.

The successful candidate will be appointed on a best value for money basis (see Section 8).

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Timescale It is anticipated that the Options Study and Business Plan work will be completed by June 2020.

It is acknowledged that this is a complex piece of work and we would wish to liaise with the appointed consultant to agree how time is best allocated within this overall timescale.

The Locations Options Study and Business Planning work will be undertaken alongside the Governance Review and Succession Planning work (subject of a separate commission although it is acknowledged that there is potential for both pieces of work to be undertaken by the same organisation and companies/individuals are free to tender for both). The Locations Options Study and Business Plan should take into consideration the outcomes and recommendations of the Governance Review and Succession Plan.

6.0 Reporting & Monitoring

The reporting schedule and milestones will be agreed with the appointed consultant.

7.0 Concurrent Work

As noted previously, a Governance Review and Succession Plan will also be undertaken alongside the Options Study & Business Plan. This work is the subject of a separate commission although it is acknowledged that there is potential for both commissions to be undertaken by the same consultancy.

We are more than happy to receive tenders from consultants who wish to tender for both pieces of work.

8.0 Tender requirements

Tenders, on not more than 5 sides of A4, should be submitted to Jo Watson by midday on 13 January 2020. The tender should include information on:

• Details of the tendering individual/company including: name; legal status (e.g. Sole Trader, Limited Company etc); head office address; address from which the work will be carried out; name and contact details for the tender (including telephone number and email address • Relevant experience and skills of the consultant(s) who will undertake the work • Two case studies of similar work including contact details for references • A lump sum fixed fee for the work. Day rates should be clearly stated. • CV(s) of key individuals who will be involved in carrying out the commission. • Details of relevant insurance(s)

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• Applicants should define the amount of time that would be committed to this project for the stated fee. However, tenderers should note that time and resource commitment is at the consultant’s risk. If the work takes longer and more time to complete then this is the nature of a fixed-price bid. No additional fee will be available unless the scope of the work changes by joint agreement.

8.0 Contract Award Criteria

Tenders will be assessed against the criteria stated below:

Criteria Weighting Price (note maximum fee for this work of circa £25,000 including all 20% expenses but excluding VAT) Recent relevant experience of options appraisals, business planning and developing sustainable income generation strategies (including 40% for the not-for-profit sector) Experience and understanding of visitor attraction and/or tourism 30% sectors

Knowledge of the maritime sector 10%

TSSP reserves the right to interview selected candidates only following a desktop assessment.

9.0 Submission of Tenders

(i) Tenders must be submitted no later than midday on 13 January 2020.

Tenders should be submitted electronically as follows:

Email to [email protected]

Subject header: Tender Proposal: Locations Option Study and Business Plan, SS Shieldhall

(ii) During the tender period, should the tenderer wish to present questions or seek clarification, requests will only be considered by email to Jo Watson at the following email address: [email protected]

(iii) Interviews: TSSP reserves the right to interview selected candidates only following a desktop assessment. Interviews will take place in w/c 18 November 2019.

(iv) Key Dates

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Closing date for submission of tenders midday on 13 January 2020 Interviews w/c 20 January Indicative Appointment Date 24 January Completion June 2020