LIVERPOOL CITY REGION COMBINED AUTHORITY To: The Chair and Members of the Transport Committee Meeting: 4 October 2018 Authority/Authorities Affected: All EXEMPT/CONFIDENTIAL ITEM: No REPORT OF MERSEYTRAVEL MERSEY FERRIES UPDATE OCTOBER 2018 1. PURPOSE OF REPORT This report is aimed at supplementing the regular corporate quarterly performance report submitted to the Transport Committee, providing a summary of key activities within the Mersey Ferries, including an update on progress of the long term Mersey Ferries Strategy. 2. RECOMMENDATIONS It is recommended that the Transport Committee note the contents of the report. 3. BACKGROUND 3.1 The details within this report provide an update of key activities at Mersey Ferries since our last update report in July 2018. For details on specific performance on passenger numbers and financials, please refer to the corporate quarterly performance report. Operational Update and Performance 3.2 Whilst members will receive details around the Mersey Ferries patronage, reliability and punctuality measures in the standard corporate performance reports, it is also recognised that an update in other key activities and operational matters would raise awareness of the work on-going within the Service Area. 3.3 Members of the Transport Committee will be aware that works associated with the Engine Management system on board Snowdrop and which were aimed at improving reliability of the vessel in the short term, were completed in March 2018. As a result of the evidence from that work, similar works have been commissioned for Royal Iris of the Mersey and are due for completion in November 2018. 3.4 Another reason for a number of service failures during 2017 related to the vessel entering the docking system on a Friday and Saturday evening – which resulted in failures to the electrical system during re-start the following morning or delays were encountered in accessing the locking system to access the river. In order to avoid this, plans were put in place to ensure the operating vessel remained on the river on a Friday and Saturday evening during our peak periods, June to September 2018. Officers are currently reviewing the impacts of these operational changes before setting the 2019 schedule. Ferries Strategy Update 3.5 In terms of the new Vessels, on 11 July 2018, Merseytravel hosted a supplier engagement event, aimed at promoting awareness of our intention to procure a new vessel(s) in the coming months. This was supported by a formal Prior Information Notice (PIN) under the Public Contract Regulations 2015. The event not only allowed Merseytravel to explain our plans and requirements in more detail, but we created an excellent opportunity for networking between local suppliers and multi- national companies. Internal feedback from the event was really positive. Our next step is to formally commence the procurement process in October 2018. 3.6 On 20 August 2018, the organisation formally launched our customer/ stakeholder engagement process linked to the new vessels. This will see around 450 people interviewed face to face, including customers and non-customers, as well as an online survey to help gather views on the facilities expected on-board a new vessel. The consultation has also reached out to key stakeholders in the region, including Ferries user groups, to help ensure our plans incorporate our customer demand. It is expected outputs from this engagement process will inform the vessel’s design process. 3.7 The project team continue to meet with procurement colleagues to finalise the procurement timetable, and specialist legal advisers have been appointed to help with the preparation of pre-procurement contract documents. The team remain on target for bids to be received this calendar year, and formal potential negotiations to commence early in 2019. 3.8 Members will also be aware that the Combined Authority has identified the new Mersey Ferry vessel(s) as a strategic opportunity to invest the 2018/19 allocation of the Transforming Cities Fund. Working towards this opportunity, officers have commissioned Mott McDonald to refine the strategic outline case and develop this into an outline business case in the coming months. Work is expected to be completed by February 2019 on the outline business case. 3.9 Members will recall that the Ferries Strategy assumed the future of the Royal Daffodil would be resolved and key decisions taken alongside any decision to proceed with the procurement of new vessels. Officers have been exploring realistic opportunities linked to the future of the Royal Daffodil, and in June 2018 placed an advertisement calling for interest in a joint venture opportunity for the vessel. The closing date for submissions was 13 July 2018 and officers are working with interested parties to establish whether a viable option is available to the organisation. This work is likely to be concluded this calendar year, hopefully allowing for a decision on its future to be taken in the near future. 3.10 The Strategy also identified a range of key interventions for the Landing Stages, in particular the two landing stages in Wirral at Seacombe and Woodside. In terms of Seacombe, the strategy assumed a necessary investment in both the landing stage and terminal in the first 5 years of the programme, and officers continue to review a range of feasibility options on the development of the landing stage and link span bridges. The most recent activities have seen development of a feasibility study for the bridges themselves, which appear to be the most critical infrastructure in terms of timescales. It is currently assumed the subsequent investment, subject to available budget, will be in 2019/20. 3.11 In respect of the Woodside terminal, following previous recommendations via this Committee, officers continue to work with colleagues in Wirral council to ensure any longer term decisions are linked to Wirral Council’s long term plans for the area. Proposals to establish a Memorandum of Understanding between the two organisations have been drafted for approval. In the interim, detailed inspections of the asset are taking place and short term expenditure is being incurred to ensure safe operation whilst a longer term approach is agreed by the organisation. 4. RESOURCE IMPLICATIONS 4.1 Financial There are no direct financial implications associated with this report. The details of financial performance are reported corporately in the quarterly performance report, aimed at supplementing this report. The Mersey Ferries Programme Board continues to ensure long term planning to fund the various interventions identified within the strategy. Any formal approvals for expenditure will be via the Merseytravel meeting as required. 4.2 Human Resources There are no HR related issues associated with this report. Staff will of course be fully engaged with any new vessel proposals during the procurement process. 4.3 Physical Assets Projects associated with the assets within Mersey Ferries are summarised within this update report and Asset Management colleagues are key members of the project teams. 4.4 Information Technology There are no issues associated with Information technology within this report. 4.5 PMO Implications The Mersey Ferries long term strategy is a key project for Merseytravel and the Combined Authority, and so the programme is monitored in detail through regular monthly dashboard reports. 5. RISKS AND MITIGATION 5.1 The increasing risk linked to the Mersey Ferry operations is the reliability of the existing vessels. Both are now 59 years old, and despite investment and effective maintenance over their life, the vessels’ performance has shown a worrying trend of loss of service for technical faults. To address this, the Ferry strategy aims to mitigate many of these risks in the longer term, and in the short term the operational activities are focussing on how we improve reliability and ensure we protect the Ferries brand moving forward. During the 2018 season, the level of service provision has demonstrated the short term success of these changes. 5.2 The Ferries long term strategy has a Programme Board, with a specific risk register aimed at understanding and mitigating the key risks associated with the identified interventions. Officers review this monthly to monitor changes and ensure appropriate responses to any change. 6. EQUALITY AND DIVERSITY IMPLICATIONS As the report is for noting only and does not require any formal decisions, an Equality Impact Assessment has not been completed in this case. However, a key element of the design process will involvement engagement with a diverse range of service users, aimed at ensuring appropriate views are taken into account for all protected characteristics. In particular, work has already commenced via the organisations Access Officer on outline design of the new vessels, and this will continue during the design and construction phase. 7. COMMUNICATION ISSUES The information contained within this report is linked closely to communication plans in key projects to ensure key customer and stakeholder engagement where relevant. 8. CONCLUSION This report summarises key activities within the Mersey Ferries to ensure Members are aware of topical and relevant issues, along with progress of activities included within the relevant service plan and strategy. Frank Rogers Director General Contact Officer(s): Gary Evans, Head of Customer Delivery, Merseytravel, 0151 330 4502 Dil Masters, Head of Asset Management, Merseytravel, 0151 330 4500 Joanna Sawyer, Corporate Communications Manager, Merseytravel, 0151 330 1129 Appendices: None Background Documents: None .