10.1 Introduction
In 2003, Parks Victoria introduced the Yarra River Shuttle Service (YRSS). Following a successful trial, a three year contract was awarded to Williamstown Bay and River Cruises.
According to Parks Victoria, the cost of running the service from 2004 to 2008 was $1.71 million dollars. Ticket sales over this time totalled $521,000.
The operating loss from 2004 to 2008 was over $1.19 million dollars. Parks Victoria concluded that this funding model was not sustainable in the long term and the service was subsequently withdrawn.
A recent City Circle survey conducted in March 2010 asked the question of tourists regarding using a potential ferry service on the Yarra River. There was good support from visitors with 64% saying they would use such a service further adding to the tourism experience of Melbourne. Only 12 % of respondents said they wouldn’t use the service with the remaining 24% unsure. One of the reasons the YRSS was not successful was the lack of integration and promotion with other modes. Passengers on the City Circle tram are a prime market for any service introduced on the Yarra.
The majority of stakeholders interviewed for this project, supported there invigoration of the Yarra River with timetabled ferry services. Opinions varied about when and where the service should operate and the cost of such a service to passengers.
Given the lack of specific research, some of these issues are difficult to answer. For the purpose of this review, a number of different services options are considered, all with differing cost implications. There is strong support for an integrated water service becoming part of the public transport network, albeit geared specifically for the visitor and not the commuter.
Since the YRSS finished in 2008, development along the Yarra River has continued. A number of developments are currently under construction, or have been opened since April 2007 including; the Melbourne Convention & Exhibition Centre redevelopment, the Aquarium expansion, the Rectangular stadium in the Sports Precinct, Waterfront City, ANZ head quarters, Southbank apartments (under construction), Clarendon Street hotel and residential developments (under construction), World Trade Centre North Wharf (under construction), Northbank Promenade (under construction) and South Wharf developments.
Table: Stakeholders interviewed include a mix of government agencies, council, private companies, lobby groups and academic representatives. These are mentioned in more detail under Study Methodology in section 3.
14%
29%
14%
57%
86%
Seasonal only (summer)All year service with seasonal timetable No view or more analysis required Unsure
No Yes
10.2 SWOT Analysis of proposed ferry service
The following SWOT Analysis has been created looking at the opportunity from the perspective of a new operator:
STRENGTHS WEAKNESSES
> Current operators fleets vary in design and capacity and are not considered suitable for the service proposed
> From the current operators operating there appears to be a credible and viable market even though significant
weaknesses are identified.
> Good tourism drawcards are location along the Yarra River. > Development of new soccer stadium is located in the Sports
precinct.
> Appears to have strong support from industry and prospective tourists.
> Capacity of river places a constraint on speed and possibly number of services operated.
> Assets generally do not meet DDA access standards. > Wharfs require investment to upgrade waiting areas and
berthing space.
> Cruise operators are not currently structured as part of an integrated transport system and appear defensive about new operators entering the river space.
> Lack of regulation preventing new entrants thus potential impact on viability of long term operators.
> Costs of running service could be prohibitive.
> Services can be influenced by Melbourne’s weather and water events.
OPPORTUNITIES THREATS
> No current scheduled ferry service in operation on the Yarra River.
> Modern fleet, integrated with PT, improved access & marketing provide opportunity for new operator. > Integrate with MCC bus service and City Circle through
Melbourne Explorer to provide enhanced experience. > Integrate with the broader PT system network.
> Sell product via myki with additional statistics assisting with marketing and service planning.
> Consider there is an opportunity to charge reasonable (viable) fares for the product and to market properly. > There is a business opportunity to extend services during
special events.
> A well structured industry would enable operators to plan and invest on long term basis (ie, suggest a regulated market will provide a better outcome for all parties). > Partnership under the Melbourne Explorer banner will
strengthen marketing and connectivity with other modes/ tours.
> Current operators if they improve marketing, form alliances with stakeholders and upgrade fleet would provide stiff competition to any new operator and impact on viability. > Weather & competing use for access to Yarra River.
10.3 Ferry Service Comparison
Operator Commuter Tourism Fleet Pricing
Brisbane Ferries 7 day per week
targeting the commuter market.
Generally high frequency down to 12 minutes but increases in off peak and weekend / public holidays.
Marketed as a part of an integrated transport system.
Markets also to tourism market but using commuter timetable. Commuter timetable not as frequent as for commuter times (peak periods) – seems 30 minute frequency acceptable to tourism market for Brisbane.
Made up of fast cat ferries and older style vessels used for cross river and targeting tourism.
More of jetties are modern, floating pontoons and DDA compliant.
Assets owned by Brisbane City Council with operator tendering to operate / maintain for fixed price.
Sydney Ferries 7 day per week
targeting the commuter market.
Mainly operates down to 30 minute frequency although some down to 20 minutes for peak periods only.
Markets also to tourism market but using commuter timetable. Weekends and public holidays generally 45 – 60 minute frequency.
Made up of fast cat ferries and older style ferries.
Large number of services offered that suite both markets Jetties generally modern and with ramps from vessels making DDA compliant.
Assets and operation state owned.
Operates at heavy loss – high profile. Recently went through tendering process but
Government then withdrew from process.
Melbourne River Cruises
No
Services timetables but clearly target tourism market.
7 day per week timetables cruises ranging from 1 hour upwards. Covers approx 9am – 4pm period.
Fleet made up of 8 vessels all quite different in capacity.
Sightseeing prices range from - adult $23, Concession $18, child $11, family $50 to (- adult $29, Concession $25, child $16, family $75. Williamstown services range from adult $22, Concession $18, child $11, family $50 to adult $29, Concession $25, child $16, family $75. Williamstown Bay &
River Cruises
No
Services timetables but clearly target tourism market.
7 day per week timetables cruises - departure times apply. Generally 9:30am – 5.30pm operating window with hourly services.
Fleet made up of 9 vessels, 3 are small and of same design but rest different in
capacity.
Fares vary. Example is Southbank –
Williamstown -adult $25 return / $15 one way, children & seniors $22 return / $12 one way.
FLA G ST AFF SOUTHERN CR OSS PARLIAMENT MELBOURNE CENTRAL