SeaLink’s Kangaroo Island future in doubt as government puts route out to tender

New ferry operators will be invited to tender for the Kangaroo Island service when SeaLink’s licence expires soon.

Visitors and residents could get to and from Kangaroo Island cheaper, with the State Government opening up a tender for a new ferry service.

SeaLink has run the ferry service from Cape Jervis to Penneshaw for the past 29 years under a licence agreement with the government.

Its existing 25-year licence will expire in July 2024. Infrastructure Minister Corey Wingard said the new tender, out next week, aimed to:

PROMOTE economic growth, private investment and trade on the island;

INCREASE employment opportunities on the island, and;

ENSURE the ferry service provided reliability, high levels of customer service and value for money for locals, businesses and visitors.

“We want to make sure that we get the best deal for South Australians, especially those who live and work on Kangaroo Island who rely on this service and use it so often,” Mr Wingard said.

“SeaLink currently provides a valued service to the island, but this process is to ensure we get the highest-quality service possible for locals and tourists in the future.”

The tender to run ferry services, between Penneshaw on the island and Cape Jervis on the mainland, will be for up to 25 years.

SA transport minister Corey Wingard. Picture: NCA NewsWire/Kelly Barnes

“It will also provide certainty for the successful tenderer to allow them to plan their business to continue growing and improving this vital service,” Mr Wingard said.

The plan to put the contract out to tender was first floated by then-infrastructure minister Stephan Knoll two years ago.

At the time, Mr Knoll acknowledged SeaLink, which employed 370 staff in South Australia, provided a “valuable service to the island, local community and tourists alike”.

SeaLink yesterday declined to comment.

However, when Mr Knoll announced the change in 2018, then-chief executive and managing director Jeff Ellison said his company had been in discussions with the government about a possible contract extension since 2015.

“We’re pleased there is a clear process to go forward,” Mr Ellison said at the time.

The current service is provided under an agreement, which has been extended on multiple occasions, between the Infrastructure and Transport Minister of the day and SeaLink.

That agreement enables priority berthing rights for SeaLink and the Penneshaw and Cape Jervis harbours.

Mr Wingard said SeaLink had been invited to submit an expression of interest.