UK ferry line plans to invest £170 million in new vessels, port facilities and fare reductions
By
Rebecca Gibson |
The Steam Packet Company plans to increase year-round passenger capacity, provide more special offers and invest £170 million in new vessels, port facilities and fare reductions if it is selected to continue providing ferry services in the Isle of Man, UK.
The ferry operator’s current service agreement with the Isle of Man Government is due to end in 2026, but it has outlined its vision for continuing to provide services beyond that date. Full details of the plan were presented to members of Tynwald and released to the public on 24 May and can be viewed online. Printed plans will be delivered to homes and businesses on the island this June and will also be available at the Sea Terminal in Douglas.
The Steam Packet Company hopes the offer can be taken to July Tynwald for debate so investment can begin as soon as possible.
“We are not just a company which serves the Isle of Man; we are part of the Manx community,” said Mark Woodward, chief executive at Steam Packet Company. “Our management team lives and works here, we employ more than 300 Isle of Man residents and we spend significant sums in the local economy. As part of the Isle of Man, our interests are fully vested in what is best for our island.”
According to Woodward, since the start of the current User Agreement, the ferry company has already made major private investment in vessels, reduced fares (halved in real terms) and improved offers and availability.
If an agreement is made this year, the Steam Packet Company is committed to delivering a replacement for Ben-my-Chree by 2019-2021 and Manannan by 2022-2023. Arrow would be retained as freight back-up until Ben-my-Chree is replaced, after which time the Ben would become the Company’s permanent third vessel. This gives the fleet comprehensive passenger and freight back-up, as well as additional capacity and self-sufficiency during the TT and Festival of Motorcycling events.
In addition, the company plans to increase passenger and freight capacity year-round to meet the needs of a growing population and would also guarantee that more discounted seats are available each year. Passengers would also be able to take advantage of a new frequent traveller scheme, which is expected to benefit ten times more passengers than the previous scheme that was discontinued some years ago.
“We want to consolidate these benefits and provide a platform for further investment and improvements in service delivery for another generation,” said Woodward. “If a new Strategic Sea Services Agreement, to guarantee services beyond 2026, can be reached this year we will bring forward our planned investment.”
The Steam Packet Company also aims to share revenue growth above an agreed threshold to fund additional low fare and marketing initiatives. This would mean that a proportion of profits would be ring-fenced and used to target specific potential growth areas of the visitor economy or other initiatives aimed at growing passenger numbers.
The offer also includes the retention of the Manx RPI cap on standard fare increases, a commitment to formal service reviews every three years and a promise to publish Irish Sea fare comparisons every year.
“Unlike some ferry firms servicing island communities, the Steam Packet Company does not and will not require any government subsidy,” said Woodward. “We meet the costs of delivering our services ourselves. We will do this while providing guaranteed standards and levels of service and it is we, not the government or Manx public, that take all the commercial downside risk of doing this.”