Final Report: Options for the Ferry Services Between Gourock and Dunoon: page 19

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

The following two tables summarise the advantages and disadvantages of each option or family of options.

Figure 9.1 Strengths and Weaknesses of the Dual Operator Solutions

	Advantages	Disadvantages
A	Minimum risk of service disruptions competition keeps fares low and maximises choice potentially least contentious option	currently expensive and likely to become more so as new investment is required structural over-capacity
B	quicker turnaround time for passengers possible(small) positive impact from new ship effect possible external benefits for the town of Dunoon	reinforces and increases structural overcapacity on this route some investment required on piers and ships continuing operational deficit thereafter may not be technically feasible
C	guarantees continuance of passenger service vessels would deliver a quicker crossing no traffic congestion in Dunoon some reduction in surplus capacity	high investment costs Gourock-Dunoon continues to lose money, though less than at present not considered feasible in the long-term

Source: Deloitte & Touche

Figure 9.2 Strengths and Weaknesses of the Single Operator Solutions

	Advantages	Disadvantages
D	structural overcapacity is eliminated lowest cost option for the public sector possibility of tariff reduction	loss of competition possible concerns over passenger commitment desirable to have a regulatory framework- but in what form?
E	continues service into Dunoon	cost practicability of a PFI solution
F	structural overcapacity is eliminated superior service quality to Option D continues service into Dunoon	more capacity than Option D how can it be implemented? if through open competition, would the Gourock-Dunoon service survive?

Source: Deloitte & Touche

It can be seen from the above tables that single operator solutions are economically more favourable than multi-operator solutions.