41. GENERAL 44 14 1.2 1.24 1.22 123 124 13 1.3.4 1.3.2 14 1.44 Introduction ‘This document invites service operators to tender for the provision of a ferry service, which attracts a subsidy, in respect of passenger/vehicle ferry services between Rathlin Island and Ballycastle. Background Rathlin Island is Norther Ireland's only inhabited offshore island and lies within the Mayle local government district. It is located 6 miles from the coastal town of Ballycastle, off the northeast Antrim coast of Norther Ireland and has @ current resident population of around 90. Rathlin Isiand is located within one of Northem Ireland's main tourism areas. The island had some 16,000 visitors in 2004 [Rathiin Island Sustainable Tourism Strategy: June 2006], Ballycastle can easily be reached by road from Belfast, Londonderry and the heart of the Province. Access to the port and to the ferry service to Rathlin Island is easy and there is considerable potential for the development of the route. The current arrangement commenced in 2003 and expires at the end of March 2008. The ferry is Rathlin’s lifeline and a critical part of it's ability to attract visitors. It is attractive as a relatively cheap means of access but it almost certainly fails to meet the expectations of many visitors, in terms of quality, due to the amount of shelter provided, the design and layout of the passenger accommodation. In addition the crossing is frequently rough. Role of the Department for Regional Development The Department for Regional Development has authority under Article 99 af the Roads (NI) Order 1993 to provide a road ferry service to link Ballycastle to Rathlin for conveying vehicles, persons and goods. The Department sets the fares for the service and may make bye-laws in relation to its operation and management. The Department must advertise any change to the ferry timetable. Objectives The objectives for the service are: + To maintain a ‘life-iine' service to Rathlin Island; * To offer a contract term for the service of 6 years; and, + To ensure that the maximum annual amount of subsidy to be made available for the support of the service is based on the most economically advantageous46 1.51 152 153 1.54 16 1.61 Assistance Available ‘The assistance available to the successful tenderer will be @ subsidy towards the running costs of operating the service. This will be provided to supplement the operators’ revenues eared for running the route. ‘The Department may consider a longer term contract extending up to a maximum of 12 years if it was deemed necessary to allow an Operator to commit to capital investment for a new vessel. ‘The Department will not be offering assistance for capital expenditure for upgrading any vessels used during the period of the contract. ‘Tenderers will be encouraged to find ways of maximising the revenue opportunities and minimising the costs involved. ‘Tenderers should be aware that the service specification sets out the minimum requirements for the Rathlin Ferry route for which subsidy will be paid. The subsidy will be awarded at levels set for each year of the 6-year contract, although it is also envisaged that the terms and conditions of contract may allow for some variations of specific agreed terms to the contract. This, however, will only be for material, unforeseen or changed circumstances throughout the contract period. Role of Moyle District Council ‘While the Rathiin Island Ferry service subsidy is currently managed by the Department the management of this contract will pass to Moyle District Council (MDC) in 2009 under the Review of Public Administration Where this tender refers to the Department this shouid be read as Moyle District Council, or its successor, ‘from 2009 onwards.2.6.2 Tenderers must be acutely aware of the high importance the Department attaches to the safety of ferry services and fo the requirement for tenderers to meet all applicable safety requirements for vessels, passengers and crew in operating the services, While specific safety requirements are explicitly referred to in Section 3, it is for the operator to ensure that it complies with all relevant national and international legislation, Conventions, Directives, as well as Industry Codes and Standards. Tender submissions should include a clear statement confirming that the requirements of this paragraph will be met. 2.6.3 The Department has analysed a number of the main risks associated with the tender exercise and has allocated the way in which these would be expected to fall between the operator and the Department. Table 1 below lists some of the risks and the Department's indicative analysis of their allocation. However, this table does not represent a commitment by the Depertment to accept certain risks. ‘Table 1 ALLOCATION OF SOME KEY RISK‘ Operator | Department |Moyle Shared/ Comment DC Negotiable vy vy Commissioning risk | Operational v risk(vessels) Policy risk ¥ Policy risk nat involving a i ean ad legislation Demand for volume v Risk that demand for risks service does not match the levels planned Maintenance risk for harbours ls eee ae eee Maintenance risk for vessels Fuel Costs Se v This will be triggered by a dramatic rise in fuel costs due to unforeseen Stee eee on Be eal circumstances Inflation risk ¥ Legislative risks Depends on Corporation tax, etc. ‘would fall to operator MCA Regs may be either depending on eile