KI ferry services operator Sealink to defer investment in new KI vessel
KANGAROO Island ferry operator SeaLink has pushed back millions in new investment until “it has clarity” on its position in South Australia.
- Turning tide: KI ferry service to go to tender
- KI hotel: New $35 million project for island
- Results: Record sales for SeaLink
KANGAROO Island ferry operator SeaLink has pushed back millions in new investment until it “has clarity” on its position in South Australia.
There was some frustration and concern among shareholders about the state government’s decision to go out to tender on the KI ferry service, announced last week, managing director Jeff Ellison told The Advertiser on the sidelines on the company’s annual meeting on Monday.
Sealink has run the ferry service from Cape Jervis to Penneshaw under a licence agreement with the State Government for the past 29 years.
“We wanted to invest in our operations for the future and there were plans on the drawing board for one new vessel for Kangaroo Island,” Mr Ellison said.
“One vessel (of the two used for KI) is now over 20 years old and we would have liked to upgrade to a new vessel. And there was also consideration for a second larger, faster vessel.
“That’s an investment of more than $15 million for one ferry.
“We won’t be doing that until we have clarity on our position in SA,” he said.
SeaLink’s existing 25-year licence will expire in July 2024. The company had been in discussions with the government about a possible contract extension since 2015.
Mr Ellison said SeaLink was in a “solid position” to bid for the tender but was now deferring new investments until the outcome of that process.
SeaLink’s Sealion 2000 catamaran ferry was built in 1998 at a cost of $10 million. A second ferry, Spirit of KI, was built for $14.3 million in 2004 by WA shipbuilder Austal.
Mr Ellison will retire as chief executive in 2019 after 21 years at the helm, before he rejoins the board three to six months later.
He has built the Australian sharemarket-listed, SA-based company into a national ferry and cruise services operator.
Last week, Transport Minister Stephan Knoll said a decision had been made to go out to the market through a competitive tender process for the provision of ferry services to Kangaroo Island.
