We invited the private ferry operators to propose fares from 2018 to 2021. We received fare proposals from all operators except Clarence River Ferries.
We considered the proposals from Central Coast Ferries and Matilda Cruises to be market-driven and efficient as they face a high level of competition. We made a draft decision to accept their proposals to keep fares constant in real terms.
The remaining five operators face little or no competition. We engaged a consultant, the Centre for International Economics (CIE), to provide advice on these operators’ efficient costs. We then estimated the fares that would be required to recover these efficient costs.
Our draft decision is to accept Brooklyn Ferry Service and Church Point Ferry Service’s pricing proposals, as their proposed fares reflect efficient costs. Under our draft decision, their fares would increase by 30 to 40 cents each year.
For Cronulla and National Park Ferry Service and Palm Beach Ferries, our draft decision is not to accept their pricing proposals and to freeze the current maximum fares for the next four years. Their proposed fares exceed efficient levels.
Clarence River Ferries did not propose fares. As the current maximum fare is well below our estimated efficient fares, we decided to increase its fares by 30 cents each year.