Private ferry services: Review of maximum fares from 1 January 2018
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IPART is determining maximum fares for the private ferry industry for the four years between 2018 and 2021. To assist IPART’s fare review we have assessed the efficiency of operators reported operating and capital costs for the review period.
The efficiency of operators’ reported costs was assessed by reference to cost benchmarks from previous reviews of the industry and by examining annual changes in costs. It is important to note the private ferry industry is a small scale industry, often operated by family-owned businesses and is extremely heterogeneous in nature with different service routes, business structures and patronage characteristics. Due to these industry characteristics, it is not possible to definitively determine whether an operator is efficient. Rather we consider whether operators are reasonably efficient.
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