Select Committee on Culture, Media and Sport Third Report



APPENDIX 5

Memorandum submitted by Catamaran Cruisers Ltd

  Catamaran Cruisers Ltd (CCL) operates daily licensed scheduled leisure and tourism (sight-seeing) services on the river Thames, concentrating particularly on a route between Embankment pier (formally known as Charing Cross pier), Tower pier and Greenwich pier. (In addition, under the trade mark "Bateaux London", the company is also the largest provider of public restaurant cruises on the river.)

  Since being granted the exclusive licence, by the Port of London Authority (PLA) in 1993, to operate the sight-seeing service until 2007, CCL has so far invested £8.0 million (rising to £10.5 million by 2002) in new facilities, boats and services. CCL employs 147 people and carries 420,000 sight-seeing passengers per annum (plus a further 80,000 passengers per annum on its restaurant cruises). The Thames attracts over two million visitors per annum and is one of the major tourist attractions in London.

  On 1 April 1999, responsibility for the operation of the key passenger piers and services on the river will transfer from the PLA to London River Services (LRS), a newly formed subsidiary of London Transport (LT). This coincides with a new initiative by the Government to facilitate transport services to the Millennium Dome at Greenwich; with the long-term aim of establishing new viable water-bus services on the Thames.

  Whilst the need to transport visitors to the Dome is obviously of national importance, past attempts to establish water-bus services eg Thamesline and RiverBus have failed, despite receiving considerable operating subsidies during their existence. When RiverBus was running, CCL estimates that it lost between 50,000 to 75,000 passengers per annum (roughly 20 per cent of its business at the time).

  LRS appears to be applying fundamentally transport orientated planning protocols to its proposed management of the river leisure and tourism services, under the terms of the London Transport Act. Without sympathetic, informed and experienced tourism trained management in LRS, the risk is that in seeking to re-introduce river bus services, the already successful and important leisure and tourism services may be unnecessarily and unfairly undermined.

  A combination of:

    —  LRS choosing to apply the regulations of the London Transport Act, without assessing their suitability to leisure and tourism services on the river, and

    —  the perceived need to make any new river bus service successful at all costs,

may prejudice the level and rate of return on CCL's investment and possibly lead to withdrawal of the company from the business.

  CCL was within a week of being forced to withdraw when the last river bus service failed in 1993.

  CCL needs some confirmation that past agreements and licences will be honoured and that the establishment of any new river bus service(s) will not be made at the expense of the continued successful operation and development of leisure and tourism services on the river Thames.

November 1998


 
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