Elsewhere: Sea Lorry

Miracle-bridges, spreading across channels, and tunnels dug between islands and continents pull together cities and the countries. Decreasing distances and aircraft services that every year become more accessible to everybody. But traditional sea carriers reluctantly concede their position and continue to play an important role in the world transport system. In the competitive struggle against other kinds of transportation, the ferry industry is offering new tariffs, high speeds, untalked about carrying capacity and greater comfort.

Running on waves

Ferries are a specific type of transport. People, we shall admit, that travel on cruise liners, do not travel on them. They first of all are ideally suited for those whose aim is to travel alone or together with their family to different countries by car. They are convenient for small and medium-seized businesses for transporting packages and boxes. And for corporations aimed at the international market, which transport large-sized or any kind of cargo possible from one country to another, ferries are simply irreplaceable. It is transport for work, ferrying passengers and cargo on regular return routes, often repeatedly during a day.

The busiest ferries are on the Baltic and Mediterranean seas, and also between France and the UK across the La Manche channel. On the Baltic sea vessels transport annually almost 80 million passengers. Active ferry movement is observed in Southeast Asia (from China to Australia, including Singapore, the Philippines and Indonesia) and in some regions of the US and Canada.

Ferries are different: normal and high-speed, passenger, cargo and multi-purpose, i.e. for transporting both passengers and cargo. Sometimes barges play the role of cargo ferries, moving by means of tows. Modern, 12-deck cargo ferries are capable of transporting 7,200 cars at one time.

On the sea transportation market there are two types of ferries are popular - RoRo and RoPax. For RoRo (Roll-on/Roll-off) cargo ships port cranes are not necessary – any vehicle with wheels can cross from the bridge to the ferry, where it is attached to a special fastening. It unloads the same way. Such vessels have allowed the time of loading/unloading to be considerably reduced. RoPax (Roll-on/Roll-off and Passenger) ferries simultaneously transport vehicles and passengers.

During the last few decades in developed countries for passenger and mixed transportation, catamarans, high-speed vessels on an air pillow capable of accelerating to 75-100 km/h have begun to be used. The biggest catamarans are Stena HSS, which are powered by gas-turbine and diesel engines manufactured by US company General Electric, and belong to Swedish operator Stena Line and can simultaneously transport 1,500 passengers and 375 cars.

Brief happiness

The wide use of catamarans has allowed the ferry industry to seriously compete with other types of transport. High speeds immediately reveal the huge advantages of ferries - their high carrying capacity, in which sea operator’s most dangerous competitor - the aircraft - cannot compete. It seems, for ferrymen a new epoch has opened. However the pleasure was short. The swift and steady rise in the price of oil and all power resources has made fuel so expensive that speed, or more precisely, the most powerful engines began to eat all the profits. Because of this in some locations, for example the Irish sea, it was even necessary to stop operating high-speed vessels.

And if at the end of the last century and beginning of this century the ferry business seemed quite stable in the following years its position has fallen. As CNBC European Business magazine remarks, the ferry industry peaked in 2004. Since then a recession has become obvious.

The Independent newspaper also thinks the ferry business as a whole has far not the best times. Large companies-carriers are announcing the cancellation of routes which have become unprofitable, owing to the construction of bridges and tunnels, and also the skilful work of pilots has gone over on alternative types of transport. British operator P&O Ferries, which operates in the north and West of Europe, as early as 2004 reduced its routes from 11 to seven. As a result 1,200 people lost their jobs.

Eurostat’s information is also not in favor of ferries. In the European union (27 members) 8.2 million people used the transport industry as a whole in 2005, and its turnover totaled 363 billion euros. From 1995 to 2004 cargo and passenger transportation by automobile and air increased, but sea transportation decreased, generally due to a reduction in passenger transportation (without cruise liners).

Although cargo sea transportation is also not at all smooth. In 2005 only, through EU ports, 3,718 tonnes of goods passed, 4.2 per cent more than in 2004. However this is the total and if we consider each country separately from 1997 to 2005, in Denmark sea freight traffic decreased 20 per cent. And for the period 2004 to 2005 freight traffic in Finland fell 7 per cent and in Greece fell 4 per cent. As for passenger transportation it’s quite clear: sea ferries in 2005 transported 387 million people, 4.9 per cent less than in 2004.

In the EU, Greece and Italy passengers ferries transported the most - approximately 86 million and 79 million people annually accordingly. However in Greece the number of people using ferries after a bridge between the Peloponnese islands and Greek mainland was put into operation in 2004, has fallen sharply. In Denmark, which takes third place in terms of passenger sea transportation in Europe, for the same reason - construction of bridges - from 1997 to 2005 the number wishing to sweep the waves fell 37 per cent. The same has been observed in Sweden. And France and Britain are no exceptions, where passenger streams have inevitably fallen. The main ones to blame are the tunnel near La Manche and aircraft. From 2000 to 2006 the number of passengers using ferries between Britain and France, fell almost 20 per cent, and between Britain and Ireland, by 25 per cent.

In Ireland which has no bridges and tunnels that would connect the country to its neighbors, as a whole the ferry business is increasing. Its turnover in 2006 totaled almost 1.7 billion euros, several per cent more than in 2005. However in Ireland growth happens only due to freight traffic, with passenger traffic gradually fall, due to aircraft whose services are cheaper, and speeds faster.

Sandwiches in place of restaurants

Demand for passenger ferries on the other side of the world in Japan is also falling. Japanese independent expert Tsuoshi Ishiyama pays attention to this. He specifies that in Japan the possibility of transporting on ferries besides passengers cars appeared in 1954. Then at the start of the 1970s powerful vessels with a displacement of almost 13,000 tonnes became operational. The Japanese ferry industry has roughly developed since 1986 to 1995. During these years vessels with a displacement of more than 20,000 tonnes have been constructed.

However in 1996 a depression started which lasted until 2005. The government trying to give an impulse to business and to urge competition, cancelled a number of privileges for ferrymen. As a result sea operators, trying to successfully compete with aviation companies and railway companies, lowered the number and quality of services with a view of reducing charges and costs of tickets. For example, restaurants were closed, and instead of them automatic sandwich machines were installed. And on some routes passenger transportation has been cancelled and now only cargo is transported, providing significant profits. Ferries for very rich passengers were simultaneously formed. On them excellent cabins with balconies in particular, were equipped.

Today Japan is connected to Russia, South Korea and China by ferry. However Japanese people rarely use them, preferring air to water. For this reason many Japanese operators move to the Philippines, the Near East or Greece to work, emphasizes Ishiyama.

There is a somewhat different situation with ferries developing in the US. According to data of the US Ministry of Transport, the American ferry market serves 3,600 large and small vessels, which annually transport almost 200 million people. The Lion's share of the market is controlled by about 30 large operators. traditionally, ordinary Americans, preferring to drive everywhere in their own cars, saw ferries only as a means for transporting large cargo, however constant and wearisome traffic jams on the roads and the increase in fuel prices, have forced citizens to view ferries as a convenient public transport.

In the US, the busiest and most profitable passenger and cargo routes run on water areas in New York, San Francisco, Washington, the Great Lakes and the Caribbean sea.

Art galleries onboard

Meanwhile serious problems are forcing European sea operators to take serious measures. Ferrymen are doing whatever they can to attract as many clients as possible. To please passengers, the companies-operators have installed equipment for uninterrupted mobile communication.

And British operator Brittany Ferries, for example, has decided to lay a stake in art. As Lloyd's List's web site notes, each of Brittany Ferries six ships have a unique internal character, picture galleries with 1,300 pictures of different artists saved up from the previous 25 years. Passengers can admire pictures, sculptures and photos. Only onboard flagman ferry Pont Aven can you find 200 canvasses. The company already offers passengers MP3 players for rent for $2 by which it is possible to hear a commentary of critics on each picture in English and French. The same company in May of this year introduced new lower tariffs for crossings to France until the end of summer. In general, prices were lowered by 30 per cent.

"The storm of terrorism is forcing airports to accept strengthened security measures that lengthens the check-in and landing process. Carriers have decided to take advantage of this, offering quicker and more convenient methods of checking documents and tickets. On boats, new examination equipment has also been installed and procedures for checking tickets have been improved to reduce costs and save time. On European routes registration, the checking of tickets/documents and boarding takes 30 minutes to an hour, and in some cases 3 hours. Tickets for a ferry can be ordered in advance on the Internet (for example, on the Ferrybooker.com Web site) with payment by credit cards Visa and Mastercard (2% transaction charge) and debit cards Delta and Switch (without a charge). On the Internet it is possible to see preliminary routes, to choose a suitable time and to find out the cost of a trip.

There is an active game in prices. It is difficult to say up to what limit carriers can reduce the price to remain afloat. For example, in June 2000, a return trip for a car and four passengers between Dover and Calais cost a minimum of 255 pounds sterling ($506). In June 2007, the same ticket cost only 70 pounds ($139)! Irish operator Irish Ferries has lowered the price for one car and a family of four people from 258 pounds ($512) to 178 pounds ($353).

On many European routes with a ticket for one person with a car, an additional adult ticket costs approximately 22 euros one way, and an additional children's (up to 15 years), 7 euros. Children up to the age of 4-5 travel free of charge. "So for those who travel by car with small children, it is more favorable to travel by ferry as European airlines charge full fare travel for a child older than 2.

Other radical measures are also being taken. Including decisions by the heads of the companies to make ships longer, which is more profitable than buying new ones. One of the largest operator's in Europe Stena Line this year set a new record for the length of a boat. The Stena Hollandica ferry has been extended in the German port of Bremerhaven by more than 30 per cent, from 188 meters to 240 meters making it the world's largest in its class. The Stena Hollandica ferry now has a capacity of 900 people, instead of 440, and the quantity of cabins has increased from 192 to 398, director of the branch serving the North Sea, Pim De Lang says. This cost approximately $142 million. It is not the first increase in size: earlier at the same shipyard the Stena Britannica ferry was extended to about 240 meters.

"Such a difficult decision was made after the company had to terminate the operation of high-speed catamaran HSS Discovery because of an increase in prices for fuel and a reduction in the price for air tickets, making the operation of a catamaran unprofitable. “Now we offer speed, but have increased comfort on a number of routes. It is necessary for us to keep our share in the passenger market while at the same time increasing cargo capacity. This can be done in three ways: 1) construct new vessels; 2) buy or hire additional ships; 3) improve available ferries. We have chosen the third as the cost of this variant was optimum and the time suited us."

Before reconstruction experts at Stena Line consulted with crew and passengers that it is necessary to increase the convenience of a trip. Now on the extended ferries, there are bars and restaurants with a wide range of fresh dishes, there are rooms for rest that allow passengers to relax. It is possible to go to a casino, to watch a film or to play videogames.

The punch back

As a result of the measures taken the situation has begun to be corrected. Some routes have literally come back to life. The popularity of a ferry between Newhaven (Britain) and Dieppe (France) via La Manche has been revived, for example. In May this year 31 per cent more cars traveled than in 2006. And foot passengers have also increased so much so that it was necessary to add two new ferries. It is especially interesting if we consider that in 1999 transportation on this route was stopped because of low profitability. In 2001 the French side formed a new operator who bought part of the English business and has renewed transportations.

HD Ferries in July this year launched a new route connecting the islands of Jersey and Alderney (La Manche) with the French city of Cherbourg. The ferry-catamaran can simultaneously transport 400 people and 100 cars. The travel time from Alderney to Jersey takes 2 hours 45 minutes, and from Jersey to Cherbourg it takes 3 hours. A one way ticket for a car and two passengers from Jersey to Cherbourg costs on average 146 euros (43 euros per person without a car), and the same ticket for the Jersey to Alderney costs on average 220 euros (43 euros per person without a machine). Bicycles are taken on free of charge.

If we talk about individual operators some of them clearly show that the talk about the death of ferries is strongly exaggerated. "Stena Line is steadily increasing its passenger turnover. In the first quarter of 2007 the company transported 15 per cent more passengers than in the same period of 2006. Success has mostly been gained due to connections of countries - new EU members with old. Popular routes between Poland and Sweden are indicative in this respect. Stena Line is one of the strongest companies in the Europe. The company employs 5,700 people, 3,500 of which work abroad (outside Sweden). The company was established in 1962, and has 35 vessels of which 18 float on the Baltic, seven in the North Sea and 10 in the Irish sea.

The busiest route for Stena Line is Gothenburg (southwest Sweden) to Frederikshavn (Denmark, Far North peninsula of the Jutlands). On this route in 2005 1.6 million people traveled. In 2006 Stena Line transported in total 15.9 million passengers and 2.99 million cars. In 2006 Stena Line's financial situation was the steadiest it has been since the 1990s, and total profit reached almost 58 million euros, almost twice more than in 2005, supports the general director of the company, Gunnar Bromdal.

Danish company Scandlines has even more impressive figures, having transported in 2006 20 million passengers. Scandlines serves a triangle Germany - Denmark - Sweden, and also other Baltic states. On just the Helsingburg (south of Sweden) and Helsinger (Denmark, the Far North islands of Zealand) route in the past year transported 8 million passengers.

In the long term, according to the forecasts of Ocean Shipping Consultants which has made a report on the development of the world ferry business until 2012, ferry transportations will remain in demand in the Baltics where new powerful and high-speed vessels will come into operation. For ferrymen serving routes between Britain and France, even more difficult times await. The struggle for La Manche between companies, operating all kinds of transportation, will amplify. In the Mediterranean the demand for ferries will increase mainly owing to more intensive development of the economy in the European south, than in the north.

Competition will increase among sea carriers, according to the report. This will happen among other reasons because in the pursuit of passengers and cargo operators will continue to order new vessels, and this will inevitably lead to an increase in supply, which will be greater than demand. The first region where the negative consequences of this will be shown, will be the Adriactic Sea. The further harsh competitive struggle will promote mergers and absorption in this sphere that will lead finally to the formation of a smaller number of large operators.

Why is the ocean silent?

It is necessary to separately talk about the safety of ferry transportation. In Western Europe and North America state supervising organizations rigidly control firms making and maintaining vessels of this type. "Nevertheless in developed countries ferry accidents do happen. In 1953 on the Irish Sea the Princess Victoria British ferry sunk, killing 130 people. In 1994 on its journey from Tallinn to Stockholm there was a tragedy on an Estonian ferry, in which 852 passengers and crew lost their lives. Less tragic cases but also where people have died have happened in the North Sea. Experts name the main causes of sea accidents as malfunction or deterioration of vessels, overloading and the notorious human factor: the carelessness of the crew and its bad preparation.

The influence of the human factor was evidently shown in 2003 with an incident that happened in New York harbor where a ferry was making an ordinary crossing on a quiet day between the islands of Manhattan and Staten. The ferry ran into a mooring at full speed and 13 passengers were killed and 42 injured. It was revealed that the crew had been badly prepared and had shown negligence. But in general American ferries are famous for reliability and safety.

These accidents fade in comparison to those that happen on ferries in developing countries. In Congo, Tanzania, Somalia, Zambia, Burundi, Bangladesh, Indonesia and some other countries accident involving the transportation of people is a usual phenomenon. In 2002 a Senegalese ferry with 1,800 passengers onboard (two times more than regulated) capsized, nobody was rescued. In 2004, near Congo a ferry capsized, 200 passengers at least died (the exact figure is unknown, as more people than permitted had jammed themselves onto the ferry). And the largest destruction of a ferry in history happened near the Philippines in 1987 when the sea swallowed 4,341 people.

A tragedy in the Red Sea takes its place in some of the most terrible accidents in recent history. last year an Egyptian ferry on which there were 1,300 passengers and 100 crew members on board, and also five lorries and 22 cars, sunk. The ferry was traveling from Dubai to the port of Safag. Almost 1,000 people died, including 115 foreigners. Commenting on the tragedy, David Osler, an employee at Lloyd's Maritime Magazine, has noticed that problems with stability are initially peculiar to such vessels.

According to the Journal of Public Transportation, during 2000-2004 more than 1,000 people died per year as a result of ferry incidents. And almost all of these tragedies have happened in African and Southeast Asian countries. Specialists explain this weak responsibility of ferry owners before the law in developing countries - to demand compensation from them for material and mental loss is extremely difficult, if at all probable. State control of the ferry industry in a number of countries is practically absent.

Feeling protected from punishment, firms-carriers take little care in the preparation of crew, testing them for the use of drugs and alcohol. They also do not bat an eyelid at overloading as profits will increase a little. Operators in developing countries try to squeeze too much juice from ferries, with many of them too old for operation. As a rule they manage to do this. Such ferries find rest only at the bottom of the ocean.

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