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Home / Business / Companies / Freight and logistics

New Waiheke electric ferry service proposed, could provide competition

Jane Phare
By Jane Phare
Senior journalist, NZ Herald·NZ Herald·
13 Feb, 2022 04:00 PM7 mins to read

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An artist's impression of Sea Waiheke's proposed floating terminal and electric ferry at Orakei's The Landing. Image / Supplied

An artist's impression of Sea Waiheke's proposed floating terminal and electric ferry at Orakei's The Landing. Image / Supplied

Auckland could have a new electric ferry link between Orakei and Waiheke Island if an innovative plan developed by a group of Kiwi investors gets the go-ahead.

The company, Sea Waiheke, wants to run a barge-style electric ferry from Orakei's The Landing to Kennedy Point on Waiheke. The ferry will accommodate 35 cars, bikes, and up to 150 passengers on as many as 12 trips a day, adding up to 84 sailings a week to and from the island. On board will be a café, a passenger seating area, and charging ports for electric vehicles and e-bikes.

Conscious of not encroaching on the 3.2-hectare land at the Orakei site, adjacent to Okahu Bay, the company wants to moor an 80-metre long pontoon barge at the southwest (city) corner of the Orakei Marina from which to load vehicles and passengers onto the ferry.

Sea Waiheke has worked on the concept for the past three years and hopes it will be included in Auckland Council/Orakei Local Board plans to redevelop The Landing site to improve recreational and water sports use.

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Spokesman for Sea Waiheke, Glendowie businessman Simon Jones, says both Fullers360 and Sealink run excellent businesses but have a stranglehold on the vehicle and passenger market, dominating the Hauraki Gulf for almost 40 years.

"I think it is high time there was some competition particularly in the Waiheke market. Whatever way you look at it I would describe it as a duopoly."

He points out although there has been plenty of talk for years about electric ferries on the Waitemata, so far there has been no sign of them.

"This would be a game-changer."

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Against a background of noisy ferries trailing diesel fumes, mechanical breakdowns, cancelled sailings, reduced schedules and passengers left behind, Auckland Transport (AT) has long talked about its vision for the future of the city's ferries. That includes a decarbonised fleet - likely to be a mixture of electric and hydrogen-powered - operating within a fully integrated travel system.

Sea Waiheke's Simon Jones in front of the site proposed for a floating terminal and electric ferry link to Waiheke Island. Photo / Brett Phibbs
Sea Waiheke's Simon Jones in front of the site proposed for a floating terminal and electric ferry link to Waiheke Island. Photo / Brett Phibbs

But although Fullers is keen to introduce electric ferries for the inner harbour, and runs electric buses on Waiheke, it won't be replacing its purpose-built diesel ferries on the island run any time soon.

One of the issues is the power supply on Waiheke. Although there is enough to charge electric buses, major infrastructure in the form of a new cable to the island would be needed to recharge a large passenger ferry.

But Jones says Sea Waiheke has found a way around that issue. The company's electric ferry, which has four motors but can operate on two in the event of mechanical failure, will be able to run all day without needing to be recharged at the Waiheke end.

ea Waiheke's proposed electric ferry will run all day without needing to be recharged at Kennedy Point. Image / Supplied
ea Waiheke's proposed electric ferry will run all day without needing to be recharged at Kennedy Point. Image / Supplied

"We have come up with a very clever workaround that takes that constraint out of play. I can assure you that we can run all day fully electric between Waiheke and Orakei Landing."

Loading and unloading will be quick because of the drive-on, drive-off design of the double-ended ferry.

Jones estimates construction of the loading barge, which will include a ticket office and passenger waiting area, and the electric ferry will take about nine months. Construction will either be done in New Zealand or Singapore.

Jones, who has a background in the ferry industry, has lived and breathed the project for the past three years. What's not to like about the plan, he wants to know? The 50-minute trip will be a cleaner, greener way of getting to Waiheke, the ferry is so quiet it will be "like sailing," The Landing connects to one of Auckland's most popular cycleways, and if car parking is an issue for commuters they can hop on the Link Bus to get to Tamaki Drive.

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And although Jones expects Fullers and Sealink to get sniffy about competition, he points out the population on Waiheke is growing, and so are ferry commuter numbers. Vehicle spaces on Sealink are often booked out well in advance during summer and peak times.

Jones is not the only one who thinks the two major ferry companies have been dominant for too long. Both Fullers, owned by Scottish bus baron Sir Brian Souter, and Sealink have been subject to complaints of monopolistic/anti competitive behaviour to the Commerce Commission in the past.

Fullers and Sealink ferries dominate the Waiheke Island runs. Photo / Jason Oxenham
Fullers and Sealink ferries dominate the Waiheke Island runs. Photo / Jason Oxenham

But the Commerce Act sets a high bar to prove monopolistic behaviour and so far both companies have escaped prosecution, due to a lack of evidence.

Businessman and Auckland yachtie William Goodfellow tried and failed to go up against Fullers with a competing passenger ferry service several years ago. Jones points out that Sea Waiheke won't be fighting with Fullers for terminal space at the city end, as was the case with Goodfellow's Explore ferries.

Almost as important as the boats in a ferry business is the land-based asset, Jones says.

"Where is your ferry terminal going to be? If you try to slog it out with an established incumbent at their terminal, you're going to find it hard work."

He does not anticipate a problem at the Kennedy Point end either, pointing out there is a second landing area and that Sea Waiheke intends to work collaboratively with AT and Sealink.

"It (Kennedy Point) can easily accommodate two providers."

Jones says at this stage, Sea Waiheke's intended pricing structure is commercially sensitive but that it will be "very competitive".

Complaints of high pricing

Waiheke commuters and visitors to the island have long complained about is the cost of ferry tickets. Fullers has an exemption from the Public Transport Operating Model (PTOM) for the Waiheke run on the basis that it is a tourist destination.

That means that the Waiheke route is not fully integrated into the public transport system and can't be regulated under PTOM. Fullers can charge a commercial rate, reduce services and change or drop services with just over two weeks' notice.

Jones: "We will come to the market with a view to delivering value and innovation. It will certainly be cheaper than prevailing pricing."

Last year Fullers received $1.766m from Waiheke SuperGold subsidies, which enables passengers aged 65 and over to travel for free during off-peak hours. Sea Waiheke plans to apply for the subsidy so that passengers aged 65 and over can travel free.

One of the key investors in Sea Waiheke is Australian-based Sea Transport Solution, experienced in naval architecture and ship building, and ferry operation. Jones is coy about naming the other investors and advisers but says they come with extensive commercial, ferry management, and design and operation expertise.

Back in 2013 the Orakei Local Board revealed plans for a major redevelopment of The Landing as part of the council's Pathways to the Sea project but work is yet to start. Several options for the Orakei site are now open for public feedback on the Auckland Council website. Public feedback closes on February 28.

An artist's impression of one of the Auckland Council's concept plans for The Landing at Orakei, now open for public consultation. Image / Supplied
An artist's impression of one of the Auckland Council's concept plans for The Landing at Orakei, now open for public consultation. Image / Supplied

Already home to the Akarana Yacht Club in the Hyundai Marine Sports Centre, various sailing and paddling clubs, and Ferg's Kayaks, options for redevelopment include a multi-purpose water sports centre, a raised treetop canopy boardwalk, improved dingy and boat launching ramps, extra docks, more public areas close to the water and space for waka clubs, with Okahu Bay being the ancient site for waka landings.

The council says the Sea Waiheke ferry proposal is not currently included in the overall plan. Ahead of the company is the consultation-and-consent process, including Resource Consent.

High above the proposed barge site are some of Auckland's wealthiest residents along Paritai Drive. But Jones says most will not be able to see the barge nor will noise be a factor. The electric ferry will make considerably less noise than any of the diesel motors from the yachts and launches moored at the marina next door.

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