KI Ferry

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Wayno
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KI Ferry

#1 Post by Wayno » Mon Mar 29, 2010 2:02 pm

Hi guys, i was recently in New Zealand with my family, and we visited Waiheke Island which IMO equates to Kangaroo Island in many many ways.

Comparing Ferry services, I can't help but think we are being ripped by the KI Ferry Operators. A return trip for Car + 2 adults + 2 kids costs approx $AUD430 for KI, while it only costs $NZ223 ($AUD172) for Waiheke. A significant difference.

Here's some comparative stats:

Waiheke Island
- Land mass: 92sq km
- Island population: 8000
- Auckland population: 1.5m
- Visitors per annum: <unsure>
- Ferry distance/time: 20km/35mins
- Ferry Fares: Adult $NZ30.00 ($AUD21), child $NZ16.50 ($AUD11.50), Car $NZ130 ($AUD91) - $NZ160 ($AUD123)
- Ferry Services per day: 14

Kangaroo Island
- Land mass: 4400sq km
- Island population: 7000
- Adelaide population: 1.2m
- Visitors per annum: 180,000
- Ferry distance/time: 25km/40mins
- Ferry Fares: $168 car, $86 adult, $48 kids ($436)
- Ferry services per day: 8

Another note is that Waiheke Island is serviced by 3 competitive ferry services, while KI is serviced by 1 company only.

Interestingly, there was this recent article about KI Ferry Services - something smells bad to me:
http://www.independentweekly.com.au/new ... 87218.aspx
Who pays the KI ferryman?
Across the open ocean from Cape Jervis, Kangaroo Island looms. league for league, this is one of the most expensive water crossings in the southern hemisphere, and the ferry service that controls it wants to extend its lease for another 25-years in a move which has outraged residents and potential competitors.

They fear that with no competitors, Sealink’s ferry charges for industry and passengers will continue to rise.

Sealink is using its plans to spend between three and four million dollars on a new terminal at Penneshaw as a catalyst to extend its lease until 2049.

Island resident Lorraine Felix has called for a review of Sealink’s lease conditions. “This lease is already so favourable to Sealink that it needs to fear no competition,” Ms Felix said. “Not only does Sealink have virtually exclusive use of the port facilities, the preferred crossing route is also reserved for its use.”

Ms Felix said she feared KI was becoming a “company town” with Sealink owning or controlling “so many aspects of life there that it is not healthy”.

But Sealink claims the lease extension on the publically owned wharves is necessary to make the upgrades pay for themselves. “We don’t want to build something that will last longer than we’ll be there,” Sealink managing director Jeff Ellison said.

Sealink also leases the land around the terminal, paying the KI Council about $245,000 in lease fees.

Mr Ellison said the company was confident the lease would be extended, but denied claims Sealink has a monopoly.

Rival services have come and gone, but are forced to launch from ports such as Wirrina which are almost twice as far from KI as Cape Jervis, which are not profitable. “We don’t see it as a monopoly,” Mr Ellison said. “We are competing with other forms of transport as well as competing with every other tourism market.”

The Department of Transport said the licence could be renegotiated at any time. “Within the access rights conferred to Sealink in the licence, other parties can negotiate access to the State owned facilities at Penneshaw and Cape Jervis to operate services.”

But details of the contract, which effectively gives Sealink sole right to use of the route, were revealed in 2002 by the now defunct Kangaroo Island Sea Highway Access Group.

Former group member David Harris said when the group had attempted to set up a rival ferry service from Cape Jervis to Penneshaw it discovered the contract, negotiated by the Olsen Government, allowed Sealink to monopolise the route.

Mr Harris spent more than $100,000 attempting to set up a rival service, but abandoned plans when he was unable to use Cape Jervis. “The leases over the entrance to the Cape Jervis port were designed to specifically prevent competition to Sealink,” Mr Harris said. “Sealink deserves tenure over their berth but not the entrance to the port.”

Mr Harris said the documents revealed the deal with Sealink to prevent competition on the grounds of “operational safety” by licensing them use of “Area C” which is the fairway into the port for an hour each side of its scheduled services.

“This is akin to Adelaide Airport Corporation giving sole rights to Qantas to the runway for two hours every time they schedule a service.”

Mr Harris said it would be good business for Sealink to extend its tender but the Government should not allow it to happen. “It would be outrageous if they rolled over that agreement,” Mr Harris said.

“I think the demand is there for a second operator but the KI economy has now been throttled back to a point where it has become an interesting backwater rather than an agricultural and tourism icon.”
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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rhino
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Re: KI Ferry

#2 Post by rhino » Mon Mar 29, 2010 3:39 pm

Wayno wrote: Kangaroo Island
-- Ferry distance/time: 25km/40mins
I think you'll find this is actually closer to 18km.

Wayno wrote:
Mr Harris said the documents revealed the deal with Sealink to prevent competition on the grounds of “operational safety” by licensing them use of “Area C” which is the fairway into the port for an hour each side of its scheduled services.
What an absolute joke! I wonder if there's any way to negate this - it can certainly be proved uneccesary.
cheers,
Rhino

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Re: KI Ferry

#3 Post by stumpjumper » Sat May 08, 2010 12:49 pm

KI is serviced by 1 company only
There's a clue.

I'm heading to KI in late May to work on the Cape du Couedic lighthouse. It's costing $172 for the car plus $88 return for one person Cape Jervis - Penneshaw.

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rhino
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Re: KI Ferry

#4 Post by rhino » Mon May 10, 2010 8:12 am

stumpjumper wrote:I'm heading to KI in late May to work on the Cape du Couedic lighthouse. It's costing $172 for the car plus $88 return for one person Cape Jervis - Penneshaw.
I went last year with a car and a camper trailer, which cost the equivalent of 2 cars. Because I was going for a couple of weeks, I could justify the expense rather than hire a car on the island, but when they told me the price I hit the roof.
cheers,
Rhino

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