SeaLink reveals delayed start date for new Kangaroo Island ferries
SeaLink has finally locked in a start date for two new ferries to service its expanded Kangaroo Island service, promising discounted fares in the lead up to launch.
SeaLink has set a date for the long-awaited launch of expanded services to Kangaroo Island, with two new vessels to come into service two years later than originally planned.
The two new larger ferries were originally planned to enter service in July 2024 as part of a 25-year contract extension awarded by the state government in 2021.
On Friday, parent company Kelsian confirmed the new services would start on June 1 next year, following delays in the construction and delivery of the vessels being built at an Indonesian shipyard.
“This revised service commencement date under the new contract reflects delays to the vessel delivery dates, and the government and Kelsian’s desire to minimise the risk of disruption to customers from transition and mobilisation activities, particularly during the peak summer period of December and January, the Kangaroo Island Cup Carnival in February as well as Easter school holidays,” the company said in a statement to the ASX.
“The vessels’ modern designs as well as upgrades to the marine landing infrastructure will enable increased frequency of weekly services, particularly in peak season, improvements to turnaround times, facilities, and safety.”
The new vessels, called Wanggami and Ruwi, will more than double annual vehicle meterage capacity to Kangaroo Island and increase annual passenger capacity by around 20 per cent.
Kelsian initially estimated that it would spend about $57m on the two new ferries, as well as on infrastructure upgrades and terminal refurbishments at Cape Jervis and Penneshaw.
In August last year the company’s share price plunged 25 per cent on the day it revealed a $25m cost blowout, which sparked fears it would be forced to increase fares in order to recover the additional costs.
Ferry fares for Kangaroo Island residents are controlled by the new 25-year contract – which came into effect in July last year – but fares for other visitors to the island are uncontrolled, and subject to the operator’s “dynamic pricing mechanism”.
On Friday the company announced that it would bring forward the introduction of discounted vehicle fares for Kangaroo Island residents from November, and would freeze fares for livestock freight travel until the end of 2026.
It will also temporarily increase its schedule over the upcoming peak season, from seven return departures to eight.
Infrastructure and Transport Minister Emily Bourke confirmed the state government’s own $73m port upgrades at Cape Jervis and Penneshaw were complete, describing the vessel delays as “disappointing”.
“While it is disappointing SeaLink has told us its new ferries are not yet available, our priority is providing confidence to residents, farmers and tourists that access to and from the island will remain consistent during this peak period,” she said.
“The state government has completed its infrastructure upgrades and negotiated with SeaLink to deliver cheaper fares for locals, additional daily services and maintain the current freight rate for livestock until the end of 2026.”
A three-day suspension of all services to Kangaroo Island will be implemented in May to replace the ramps for the new roll-on, roll-off ferries.
Kelsian is currently looking to sell a portfolio of its Australian tourism operations, but is keeping its lucrative monopoly Kangaroo Island ferry service.
It has also faced delays in the construction and arrival of two new ferries for its services to Queensland’s Bay Islands, confirming in its annual report that the second vessel is due for delivery next month following the first vessel coming into service earlier this year.
The Kangaroo Island service carries around 500,400 passengers, more than 146,000 cars, and 14,000 freight vehicles a year.
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Originally published as SeaLink reveals delayed start date for new Kangaroo Island ferries
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