Archived decisions

Contact: Derek Jones, ext 6987 email: [email protected]

1. Background

1.1 In 1995 Hampshire County Council signed a contract with ABP Property Investments Limited (part of Associated British Ports) under which the County Council was granted a licence valid until 31 December 2018 permitting non-exclusive use of the Town Quay pontoon in Southampton as a terminal for the ferry service to and from Hythe. An annual licence fee is payable, and the County Council is also "responsible for the suitability and safety of the Permitted Use".

1.2 Clause 2.20 of the contract makes the County Council fully responsible for maintaining the pontoon "in good and tenantable repair", while clause 6 requires the County Council to indemnify ABP against "all claims or demands" relating to use of the pontoon. There is no current agreement with the operator of the Hythe-Southampton ferry service, White Horse Ferries, which requires the company to contribute to the maintenance costs or to meet any liabilities for its use of the pontoon.

1.3 It is not considered that there is a legal basis for the County Council to challenge its responsibilities under the contract with ABP.

1.4 An appendix to this report provides further background information on the County Council's involvement in the Hythe Ferry service and infrastructure.

2. Town Quay Pontoon Repairs

2.1 Over time the pontoon at Town Quay has suffered significant damage and deterioration, and the section used by the Hythe ferry is in need of urgent repairs.

2.2 In February 2005 ABP commissioned Sub-Surface Engineering of Fareham to carry out an inspection of the pontoon. The findings can be summarised as follows:

(i) the wave break pontoon was not designed to withstand the berthing loads it is subject to at the present time, and it was recommended that in its present condition the structure is not used as a ferry berth; and

(ii) in the absence of an alternative option, the section where the ferry currently berths should be replaced with a pontoon capable of taking the expected berthing forces.

2.3 In light of the urgent nature of the repairs, and the specialist nature of the project, it is proposed that ABP will act as agents for Hampshire County Council in preparing the tender documents, appointing a contractor, administering the contract and supervising the works.

2.4 The estimated cost of the project is £135,000 including allowances of £25,000 for design and project supervision by ABP, and £20,000 for support and commissioning work by the County Council.

3. Proposed Ferry Strategy

3.1 Passenger ferries form vital links in Hampshire's public transport network. It can be noted that the four main ferry services within Hampshire (at Hayling, Hythe, Gosport and Hamble) together accounted for 4.17 million passenger journeys in 2004/05, and whilst these journeys are over relatively short distances their main significance is in eliminating the need for much longer road journeys.

3.2 While several of the county's ferry services operate on a fully commercial basis without ongoing revenue support, the County Council has provided investment in capital infrastructure when this has been justified.

3.3 During LTP1, a number of actions have improved Hampshire's ferry services. Further such projects are being considered, and it is proposed that a Ferry Strategy be developed in partnership with the ferry operators (and, where appropriate, the relevant harbour authority) as agreed in the interim LTP2. This should identify funding opportunities and ways of improving passenger facilities, including signage to terminals, passenger information, marketing of ferry services, and ticketing initiatives (including extension of the availability of Solent Travelcard). Such a strategy would form a supporting document for LTP2.

4. Impact Assessments

4.1 The repairs to the pontoon will not compromise the County Council's policy on race and equalities.

Recommendations

1. That the proposed pontoon repairs at Town Quay be implemented as outlined in section 2 above.

2. That officers negotiate with ABP and with White Horse Ferries to secure the ongoing maintenance of the necessary infrastructure for the Hythe Ferry service.

543Rpt/DJ

APPENDIX

HYTHE FERRY

TRAVEL NEEDS AND DEMAND

1. In 1999 the County Council commissioned a study into the Hayling and Hythe ferries, and the resulting report was completed in 2001. This identified that 81% of passengers using the Hythe ferry originate from the Hythe side of Southampton Water, equivalent to some 350,000 passenger journeys per year (out of a total of 434,000 in the year to 31 March 2005). This is equivalent to an average of 950 out of nearly 1,200 passengers per day, making journeys that could otherwise only be made by road.

2. The role of the Hythe Ferry will be considered as part of an Access to Waterside study that is now being developed by the County Council.

REVENUE SUPPORT

3. Hampshire County Council provides financial support for two local ferry services, the Hayling Ferry between Hayling Island and Portsmouth (Eastney), operated by Edwards & Company, and the Hythe Ferry between Hythe Pier and Southampton (Town Quay), operated by White Horse Ferries, the latter being the subject of this report.

4. Revenue support for the operating costs of the Hythe Ferry is budgeted at £38,500 for 2005/6, and 41% of this sum is recharged to Southampton City Council. At present, in the absence of a formal agreement, this support is negotiated on an ad hoc basis each year.

TOWN QUAY

5. The wave break pontoon and the surrounding area of Town Quay is owned by ABP Property Investments Limited (part of Associated British Ports).

6. Under Local Government Reorganisation in 1997 it had been proposed that the County Council's interest in the Town Quay facility be transferred to Southampton City Council, but this was never carried through and consequently the County Council is responsible for maintaining it under an agreement with ABP signed in 1995 (see section 1 of the main report).

7. Redevelopment of the area around Royal Pier and Town Quay in Southampton is planned under a development brief published by Southampton City Council in 2002. The first stage entails land reclamation work at Mayflower Park. Subsequent phases would involve relocating the present Red Funnel car ferry terminal and providing new interchange facilities for ferries and buses. This is likely to involve the transfer of the Hythe Ferry to a new departure point, though this may not occur much before 2015.

HYTHE PIER

8. The Hythe Pier is owned by White Horse Ferries.

9. From time to time the County Council has provided individual grants for maintenance and repair work on the Hythe Pier to ensure that the ferry service could continue to operate from the existing terminal. A proportion of the cost of this work is however met by White Horse Ferries.

10. The County Council agreed a sum of £450,000 as capital funding to enable restoration work on Hythe Pier over a five-year period starting in 2003/4.

11. Repair work made necessary by the damage resulting from the dredger MV Donald Redford striking the pier on 1 November 2003 was funded externally and resulted in no additional costs to the County Council.

12. At present White Horse Ferries is negotiating with the Valuation Office Agency (VAO) regarding the business rates valuation for Hythe Pier. The VAO proposes to increase its valuation from about £1,500 to £12,000. White Horse Ferries is objecting to this proposal which would further add to the costs incurred by the company.

13. Passenger facilities at Hythe Pier are basic, and there is no budget provision for improvements such as shelters and refreshment facilities (which do not exist at present). It is understood that Heritage Lottery funding may not be obtainable for this site as Hythe Pier is not a listed structure, but there remains a need to seek funding from alternative source(s), to reduce the reliance of White Horse Ferries on funding from the County Council for ongoing maintenance of the pier structure.