Action for Public Transport (NSW)

PO Box K606, Haymarket, NSW, 1240

http://www.aptnsw.org.au/

Submission

Independent Public Inquiry

Long-term Public Transport Plan for Sydney


Sydney Harbour Ferry Services

7th October 2009

Prepared by Graeme Taylor

Ph. 8754-3866 (day)

email: graeme.taylor5@bigpond.com


Executive Summary

The key recommendations of our submission are:

  1. Construction of a second city ferry terminal at Barangaroo
  2. Acquisition of larger new ferries integrated with maintenance plans
  3. Measures to improve the overall efficiency of the ferry service.

Introduction

This submission to the Independent Public Inquiry to develop a long term public transport plan for Sydney concerns ferry services. Action for Public Transport is providing this submission for ferries separate from other modes because of unique problems related to governance, planning and funding. This submission discusses key topics highlighted in the inquiry's terms of reference. It recommends a significant expansion of services and measures to improve the efficiency of service delivery.

Action for Public Transport

Action for Public Transport is a consumer advocacy organisation for the users of public transport formed in 1974. We operate independently of government, political parties, trade unions and business organisations. The author of this submission, Graeme Taylor, is a member of Sydney Ferries Working Group, the customer consultation group for ferry users. He has been involved in IPART fare hearings for public and private ferries, the Walker Inquiry into Sydney Ferries, and is a member of the Australian Ferry Society. He would be happy to appear at a public hearing to further discuss this submission.

Optimisation and Integration of Existing Public Transport Services

Optimisation

Sydney Ferries needs to confront various operational problems to optimise use of existing infrastructure. The ferry system would work more efficiently with better gangway and wharf design. This is highlighted in Dr. Glazebrook's 30-Year public transport plan. To the credit of Sydney Ferries and NSW Maritime, there are programs underway to address both issues. As a trial, Sydney Ferries has widened the mid-ships gangway on the starboard side of the MV Golden Grove to accommodate two gangways rather than the standard one gangway. This will reduce the time required to load and unload passengers and enable vessels keep to timetable during busy periods. It is anticipated that the gangway program will be extended to cover all First Fleet vessels and the RiverCats.

Correspondingly there is a need to change many suburban wharves from fixed structures to pontoons to enable the use of twin gangways. NSW Maritime has a program to make necessary changes starting with the busy Milsons Point Wharf which will be replaced with a pontoon by mid 2010.

Despite these improvements capacity problems will remain. Sydney Ferries has not taken delivery of a new vessel for eight years, and given the three year lead time to acquire new vessels, there is an urgent need to charter private ferries to provide adequate capacity.

Information for passengers is currently unsatisfactory, but Sydney Ferries plans to install a new passenger information system to be known as FOCIS during 2010.

Sydney Ferries urgently need to replace the automatic ticket vending machines waterside at Circular Quay with human ticket sellers as these machines are too slow and are the cause of considerable frustration for passengers.

Integration

Sydney Ferries has a separate fare structure to other government operators for single and return trips but it shares zone based periodical tickets with other modes. Sydney Ferries offers a ten journey ticket product based on its own fare structure.

The fares charged by Sydney Ferries for its own services are too expensive and discourage patronage. The recently introduced Sunday Funday $2.50 fare has resulted in overwhelming passenger demand for ferries.

The DayTripper ticket, at $17.00, is overpriced for a person doing a day's business or leisure around town. The price assumes that everyone will take an expensive ferry ride

Sydney Ferries fare structure must be integrated with other modes to remove the financial penalty passengers incur when they choose ferry travel over other modes, especially bus.

Expansion

There are significant opportunities to further expand ferry services on Sydney Harbour. The Metro Strategy (p. 180) highlights the potential to increase the number of services along the Parramatta River. However, Dr. Glazebrook (p. 9) notes that Circular Quay is relatively congested. Action for Public Transport agrees with this observation and supports the development of a second city ferry terminal at the King St. Wharf and Barangaroo precincts.

While the Christie report does not specifically discuss ferry services, the recommendations it makes regarding expansion of the rail network have significant implications for ferry services. A high volume of passengers interchange between trains and ferries, especially for leisure travel.

To support expansion of services, Sydney Ferries will require additional vessels. This provides an opportunity to rationalise the fleet which currently comprises a diverse range of vessels. We recommend the development of four classes of Sydney ferry:

Action for Public Transport believes that upgraded maintenance facilities are required to support an expanded and modernised fleet. Options include upgrading the existing facility at Balmain, acquiring a site for a secondary facility such as Goat Island, or moving to a new larger and more modern facility.

Governance Arrangements

Governance arrangements have been a serious problem for Sydney Ferries ever since the formation of the Public Transport Commission (PTC) in 1974, which combined all modes of public transport into one organisation. Administrative amalgamation with other modes has resulted in a lack of appropriate marine and operational focus at Sydney Ferries. Since the PTC ceased in 1979, the administration of ferry services by Sydney Buses (State Transit Authority) has left a legacy of failed projects and inaction. State Transit provided very unsympathetic and ineffective management for ferries because it failed to understand the operational parameters of a marine transport service.

In 2004 Sydney Ferries Corporation was created as a stand-alone organisation to provide better management focus. While this has to some extent been effective, it has also resulted in the duplication of administration across modes of transport. Action for Public Transport supports maintaining Sydney Ferries as a separate organisation to ensure appropriate management focus, but would like to see better co-ordination between modes in regard to planning.

Environmental Sustainability

One of the key benefits that public transport such as ferries has over private motor cars is reduced emissions of greenhouse gases per passenger journey. The Transport Data Centres report Ferry Users in Sydney (March 2009) notes without these ferry services, about 4,000 weekday commuter trips to the CBD, originating in Manly, Warringah, Mosman and North Sydney would have to shift to alternative modes of transport to access the CBD via the Sydney Harbour Bridge. While this is significant, ferry services have a wider effect on the level of road congestion because they relieve pressure on arterial roads close the city centre. The research by the Transport Data Centre supports this finding noting while less than 1% of trips on an average weekday are by ferry, this mode plays a unique role in supporting Sydney's transport task. The benefits arising from the operation of ferry services in terms of reduced emissions will contribute to towards achieving greater environmental sustainability.

Social and Economic Issues

Sydney Ferries services provide access to employment and leisure activities. They are a cultural icon of our city and attract tourists from all over the world.

The construction of a second city ferry terminal will support continued growth in CBD employment and provide a new attraction for tourists.

Although the service operates at a loss, it helps stimulate economic activity in areas such as Manly and Darling Harbour.

Sydney Ferries makes a unique contribution to the quality of life for the residents of Sydney, for regular as well as infrequent users of the service.

Short and Long Term Funding

Sydney Ferries design their own unique style of vessels, so raising capital from the private sector may prove problematic, in that parties providing capital may try to influence the style of vessels built. Action for Public Transport believes that government funding would provide the most economical model. We would support an application to Infrastructure Australia to fund expansion of the fleet. Ideally the state government would provide funding for prototype vessels, and then the federal government would fund subsequent acquisitions based on the successful prototype. Construction of the ferry terminal at Barangaroo is likely to be funded in part from developer contributions.

Recurrent funding is a critical issue for Sydney Ferries. In many instances ferries do not receive their fair share of revenue generated from sales of multi-mode tickets. Continued efforts to encourage passengers to purchase tickets before they travel will inevitably result in a reduced revenue stream to operators, because these would be mostly multi-mode tickets (TravelPasses, Pensioner Excursion Tickets, Sunday Funday tickets and DayTrippers). It would be advantageous if ferries were to be paid a fixed sum per service operated rather than rely on ticketing revenue.

Sydney Ferries have a serious problem with revenue leakage through non-payment of fares, particularly on the Parramatta River services. This needs to be resolved.

Cost Effectiveness of Solutions

Traditionally ferries have enjoyed higher cost recovery rates than either bus or rail. Over the last decade, however, cost recovery for ferries has deteriorated somewhat and any plan for the future must seek to reverse this trend. In contrast to the views of Dr. Glazebrook, we do not see this decline as an attribute of ferry services but as a problem that has arisen due to compliance, administrative and industrial issues, and poor fleet planning decisions.

The plan set out in this submission seeks to:

  1. overcome the fleet deficiencies by a planned acquisition to achieve economies of scale in maintenance and crew training;
  2. set realistic fares to increase patronage;
  3. enable Sydney Ferries operational division to address capacity constraints.

Provision of a new or upgraded maintenance facility would improve financial performance by increasing vessel availability and reliability.

Conclusion

If Sydney Ferries is to improve its operational and financial performance, and to expand operations to meet the growing transport task in Sydney over the next 30 years it will need a plan. Realisation of that plan will require a consistent approach from successive governments in overseeing its implementation. The plan outlined in this submission aims to improve the efficiency of the ferry service while simultaneously expanding the fleet.

Action for Public Transport is happy to provide further information on any of the matters raised in this submission.