Claiming that the business is losing money, the Sandbanks Ferry company has resubmitted an application to increase fares for travel on the ferry between Studland and Sandbanks in Dorset.
Despite a long winded and expensive public enquiry in 2021 that set incremental fare increases of around three percent up until 2031, the company is asking for more money from ferry users just three years later and says if it doesn’t get its way then it won’t have the money to replace the ferry with a new one in 2034.
The way to board the ferry, but will more drive round if the toll increases?
Ferry company wants inflation proof increases
The ferry company argued at the three day public enquiry in 2021 for increases in line with inflation, however this was dismissed by the planning inspector who decided that fixed annual increases of around three percent would be better.
At the time it was viewed as generous but subsequently a high spike of annual RPI inflation in 2022 of 13.8 percent meant that the ferry company felt it had been hard done by.
So the ferry company is now back asking for tolls to increase in line with RPI inflation in the first year and then by January’s CPI inflation rate for subsequent years.
It also wants to unfreeze the toll for pedestrians, cycles and motorbikes.
The ferry links Sandbanks to Studland, across the mouth of Poole Harbour
Proposed toll increases
- Pedestrian (one way toll from Sandbanks): Current toll £1. Immediate increase to £1.75 followed by annual CPI inflation increase
- Pedestrian (one way from Shell Bay, Studland): No current toll charge and no proposed future toll
- Pedal or motorcycle (bikes): Current toll £1. Immediate increase to £1.75 followed by annual CPI inflation increase
- Passenger vehicle less than 16 persons (cars): Current toll £5.30. Immediate increase to £6.26 followed by annual CPI inflation increase
- Passenger vehicle more than 16 persons (coaches): Current toll £10.60. Immediate increase to £12.52 followed by annual CPI inflation increase
- Goods vehicle less than 3,500 kg (vans): Current toll £5.30. Immediate increase to £6.26 followed by annual CPI inflation increase
- Goods vehicle 3,501 kg to 20,000 kg (trucks): Current toll £10.60. Immediate increase to £12.52 followed by annual CPI inflation increase
Tolls and the number of vehicles have increased but the ferry company appears surprised that its income hasn’t increased and that drivers are using the bulk discounts!
Reduction in bulk discounts
Secondly, the ferry company is asking to reduce the discounts on bulk purchases of tickets. Motor vehicles can currently purchase passes in multiples of 10 at a discount of 28 percent, and 50 at a discount of 32 percent. The proposal is to gradually reduce the discounts over the next four years to 15 percent and 20 percent respectively.
It says this is because despite cash toll levels increasing and carrying more vehicles, it is seeing lower levels of revenue than expected.
Not surprisingly, it appears that it’s mainly vehicles with discounted tickets which are continuing to use the service.
Critics argue that making the discount less attractive is most likely to result in more vehicles driving round by road to Poole via Wareham, rather than increasing income.
Vehicles can currently park for free along the verge of Ferry Road but the company wants to start charging for the use of the road
Reintroduce road toll
Thirdly, in a surprising move, the ferry company is seeking to reintroduce the historic charge for the use of the road on the approach to the ferry on the Studland side.
It claims that the 1923 Act still permits the ferry company to charge passenger and goods vehicles to use the motor road, however it’s believed that claim is now open to legal challenge.
This is a clear move to attempt to charge those who drive up to the ferry and park, currently for free, along the verge of Ferry Road but would also effectively introduce a charge to access the National Trust owned Shell Bay car park.
The charge would be the same as the ferry toll, but those using the ferry wouldn’t have to pay twice.
There is no detail in the notes where exactly on Ferry Road the toll charge would start. Historically the old toll booths were just beyond the entrance to the National Trust Knoll Beach car park.
The ferry is prone to disaster which included being damaged by waves when being towed by a single tug to Cornwall for maintenance in 2022
“Significant and ongoing losses”
In the explanatory notes, accompanying the proposed revision of the tolls, the ferry company says:
“In light of inflation and the increase in passengers purchasing the heavily discounted bulk vehicle passes the ferry company faces significant and ongoing losses.
“In the financial year to 31st March 2023, the ferry company made a loss before taxation of £721,149 and a loss after taxation of £438,087.
“In the last financial year to 31st March 2024, the ferry company made a profit before taxation of £906,141 and a profit after taxation of £537,205. This profit being essentially cancelled by the losses in the previous year.”
The sting in the tail in the document by the ferry company is when it threatens that if tolls are not revised as requested then:
“There will be insufficient funds to make the necessary contribution to the Ferry Replacement Reserve so that the ferry can be replaced at the end of its useful life.”
Presumably if there is no new ferry and the current ferry is too old to be used, then the service will cease?
Will the proposed revision of tolls get the go ahead from the secretary of state for transport?
Objections to the proposal
When the ferry company first proposed revising the tolls in line with inflation in February 2024, a consortium of Dorset Council, Bournemouth, Christchurch and Poole Council (BCP) and Swanage Town Council, backed by parish councils including Studland, said that they did not support the proposal.
The National Trust is unlikely to support a road toll to access its car park.
However the decision lies with the secretary of state for Transport Louise Haigh.
Objections to the ferry company’s application must be submitted by Thursday 12th September 2024 via email to nationalcasework@dft.gov.uk or by letter to the Secretary of State, Department for Transport, Tyneside House, Skinnerburn Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7AR, marked for the attention of Sandra Zamenzadeh (Casework manager, National Transport Casework Team).
Further information
- Letter to the Secretary of State from the ferry company requesting to revise the maximum toll charges
- Ferry company’s revised explanatory report
- Advert of revised tolls
- Ferry company’s news release
