THE company which operates the Gourock to Dunoon ferry service in the Firth of Clyde has reported a rise in passenger numbers because of the weak pound making Scotland more attractive as a tourism destination.
The managing director of Western Ferries (Clyde) said the ferry operator has benefited in line with the broader tourism sector across Scotland since the Brexit vote in June 2016, which was immediately followed by a collapse in the value of sterling.
Gordon Ross was commenting as privately-owned Western reported a profit before tax of £2.5 million for the year ended March 21, down from £2.6m last time. The period saw the company make nearly 32,000 sailings between the Inverclyde towns, which it said was the highest by route in Scotland and higher than it had anticipated. Its ferries sailed more frequently than scheduled during peak periods.
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Mr Ross said Western Ferries’ performance has given the company the confidence to invest in major quayside infrastructure projects to expand its berthing facilities on either side of its Firth of Clyde route.
The company is investing to add new berthing structures and link spans at the McInroy’s Point terminal in Gourock, which are on track to complete this month, with similar work then due to begin at Hunter’s Quay in Dunoon. A late summer target has been set to complete the work at Hunter’s Quay. After that, Western Ferries will then proceed with plans to upgrade its overnight berthing facility at Kilmun.
Mr Ross said: “The accounts to March 2017 represent another positive performance for Western Ferries and off the back of these results, it has given us the confidence to invest in our shoreside infrastructure.
“With one-third of the investment programme nearing completion, it is estimated that our entire investment will be in the region of £6m.
“These investments will both continue and safeguard the two berthing options at each end of our service and therein the operational resilience, flexibility and robustness our customers have come to rely on.”
The accounts show turnover at Western, chaired by former NATO Secretary General Lord Robertson of Port Ellen, dipped by £200,000 to £7.7m over the period. Lower maintenance spending resulted in operating expenditure dropping to £5.1m from £5.3m.
While the period covered by the accounts had been a “good year” for Western Ferries, Mr Ross observed that the collapse in the pound since the Brexit vote had brought an indirect benefit to the service further to year-end.
“Carrying numbers for the year to March 2017 were much in line with previous years, however there is no doubt that the increase in carryings over the summer 2017 can be attributed to a growth in domestic and foreign visitors to Cowal,” he said.
“This may be partly explained by current exchange rates but also a much-improved tourist offering in Dunoon and Cowal. In particular, the events organised by the local BIDS (Business Improvement Districts which have benefited many local businesses.”
Meanwhile, Western Ferries is awaiting publication by Transport Scotland of the delayed tender for the state-subsidised Gourock to Dunoon passenger only route, currently run by CalMac subsidiary Argyll Ferries. It is understood that Western may enter the bidding process once the tender details are published.
The company is also watching closely to see whether RET (road equivalent tariff) will be introduced to the route.
RET, a distance-based fares restructure, is understood to have driven a huge increase in passenger numbers on routes such as Ardrossan to the Isle of Arran in recent years.