SCOTTISH EXECUTIVE

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Final Report: Options for the Ferry Services Between Gourock and Dunoon

4.7 Timetables

CalMac can, under the present arrangements, advertise only one return journey an hour on the Gourock/Dunoon route, which means it may lose commercial vehicles and commuter traffic to Western Ferries. At present, CalMac runs two additional services in the morning and one in the afternoon above the hourly service and these extra sailings are advertised. CalMac operates approximately 12,400 sailings annually on the Gourock/Dunoon route, 6,200 each way, equivalent to approximately 16 return sailings per day. The weekly pattern of these return sailings is as follows.

Figure 4.19 CalMac Scheduled Sailings

(* less additional Sunday sailing, run in summer, for 7 months)

Source: CalMac Timetable

CalMac's records of sailings show a total of 12,305 sailings (i.e. 6,102 return sailings) took place during the year 1996. This represents 99% of all scheduled sailings.

CalMac sets its timetable biannually (for summer and winter) and it consults on its timetable through the Shipping Services Advisory Committee. This body includes local councillors and representatives from road haulage companies and the tourist industry. CalMac's use of its summer timetable has expanded in recent years from mid-May to September to Easter until mid-October.

Key features of the two companies' timetables are summarised in Figure 4.20 below.

Figure 4.20 Gourock/Dunoon : times of first and last sailings

Source: published timetables -

Figure 4.20 shows that the earliest CalMac sailing between Gourock and Dunoon is at 06:20 and the latest is at 20:45. Longer operational days were opposed by CalMac's trade unions when last suggested. The Hours of Work legislation of the Maritime Safety Agency state that a minimum 8 hour break must be provided between shifts.

Western Ferries has no restrictions on its timetable arrangements. It operates a service every half hour, with 15 minute intervals at peak hours, and runs later into the night. Western Ferries' crews work a 40-hour week and overtime is payable, so they are more flexible than CalMac in being able to put on extra vessels when needed. With respect to the Wemyss Bay/Rothesay route, sailings are every three-quarters of an hour. CalMac operates 10,000 sailings between Rothesay and Wemyss Bay each year, equating to an average of 28 sailings per day.

CalMac put on later sailings on the Wemyss Bay/Rothesay route last year. The initial uptake was disappointing, but CalMac does not expect a new timetabled vessel to be fully utilised for up to three years.

The use of a second ship on the Wemyss Bay/Rothesay route was a response to undercapacity problems. Even so, the last ship to the Isle of Bute leaves at 8 p.m.(via Rhubodach), or 7 p.m. via Rothesay, and we are advised that some companies which have relocated to the area have complained about this. Argyll and Bute Council would like to see this service extended beyond this time. From next year, the Pioneer will be a network resource and, if it is required elsewhere, then the Wemyss Bay service will not be able to offer the full advertised summer timetable.

4.8 Tariffs

CalMac sets its prices on the basis of a pricing model limiting tariffs to the costs of service delivery.

Although the behaviour of competitors is said not to be a key factor, the two providers are close in price terms. Local people are reported to believe the existence of competition keeps prices low and accordingly support the continuance of two operators on the route.

The tariffs charged on the route are shown in Figure 4.21 overleaf.

Figure 4.2 1 Operators' tariffs on the Gourock/Dunoon route, March 1997-April 1998

Source: CalMac & Western Ferries

Western Ferries is reportedly perceived as cheaper than CalMac, although Figure 4.21 suggests that this is not always the case. In CalMac's view, CalMac has a reputation for high fares which is not borne out when it is compared with other ferry services on a cost-per mile basis.

Both operators sell heavily discounted tickets through agents or "bucket shops". The shops in question are newsagents and other small concerns. In CalMac's case, the discounted ticket prices exclude pier dues.

The CalMac network-wide standard discount for the purchase of a multi-journey pack of tickets is 40% for vehicles and 30% for passengers. CalMac's multi-journey tickets have a 6 month expiry date, while Western Ferries' are undated. This probably means that price increases do not have immediate full impact for either operator, and, probably, that Western Ferries' price increases take longer to have effect than CalMac's.

CalMac offers off-peak travel prices during the winter to those travelling from Gourock to Dunoon and all year round to those travelling from Dunoon. CalMac's 10-journey tickets are the same price all year round. Western Ferries does not offer off-peak travel. There is no differential pricing to favour certain times of day with lower prices.

CalMac has never tied the cost of acquiring a new vessel into a fare increase. Instead, it has spread the cost of any new investment needed amongst the network.

CalMac also receives revenue from Strathclyde Passenger Transport Executive in respect of concessionary fares (as does Western Ferries), as well as a 5% commission on pier dues collected on behalf of Argyll & Bute Council in respect of Dunoon Pier, and income from a Royal Mail contract.

Western Ferries' tariffs are also shown in Figure 4.2 1. Unlike CalMac:

• Western Ferries does not allow pre-booking (CalMac pre-book commercial vehicles and coaches onto specific journeys);
• Western Ferries' multi-journey tickets are available for sale as single tickets, still at the discounted price, although the company is now trying to phase out this practice;
• Western Ferries offer season tickets to cars and passengers, while CalMac offer them to foot passengers only;
• Western Ferries let foot passenger pensioners travel free.

Average turnover per passenger type in 1996-97 is as follows.

Figure 4.22 Average turnover per traffic type

Source: CalMac & Western Ferries traffic & revenue figures

Clearly, these figures do not compare with the quoted tariff in Figure 4.21. CalMac advised that a discount of 35% of quoted prices is usual for them on this route, due to multi-journey tickets, off-peak travel and "bucket shop" discount sales.

The analysis above shows that:

• CalMac generates more revenue per passenger and per coach, but less per car;
• Western Ferries' revenue per unit is higher than CalMac's.

Figure 4.23 Comparison of CalMac tariffs per kilometre across the network

fig 4.23

Source: MMC report on Cross-Solent Ferries, Appendix 2.4 & existing CalMac tariffs

The tables below and on the previous page reveal that, although Gourock/ Dunoon is 10th shortest out of 26 routes in terms of distance (and 8th shortest in terms of journey time), it is 16th out of 26 in terms of cost per kilometre. Even taking into account the fact that short routes suffer from sunk costs, Gourock/ Dunoon is in fact a relatively expensive route per kilometre. Therefore, the existence of competition on this route does not appear to have reduced fares compared to other routes. This suggests that the current level of subsidy is financing excess capacity.

Figure 4.24 CalMac network routes by kilometre

Source: MMC report on Cross-Solent Ferries, Appendix 2.4

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