Effects of EU policy regulations on ferry operation: sustainability issues in public procurement of ferry services

This report brings together the activity from the Institute for Sustainability and UCL Energy Institute to explore the effects of EU policy regulation on ferry operations. UCL Energy Institute investigated the sustainability issues related to public procurement of ferry services in the North Sea Region. This report identifies the key drivers for public procurement and identifies some of the challenges that ferry operators and procurers can face. The report begins with a brief overview of the procurement process in EU and the problems that are currently being faced in the EU ferries sector. This report highlights how different types of ‘split incentives’ can stymie attempts to improve quality or sustainability of ferry services through the tender and procurement process. Policy recommendations that can avoid, alleviate or minimise the issues of split incentives include; Policies that target the design based efficiencies, such as the EEDI, policies that incentivise the improvements in operational or in-service efficiency of ferries, revisiting some aspects of public procurement and standardising them for uniform application across all the member states This report, coupled with the iTransfer Ferry Toolkit, produced by SEStran, forms a comprehensive guidance to all operators and procurers of ferry services in the North Sea Region and beyond. This report is part of iTransfer, a North Sea Region Interreg programme project, which is funded by the European Regional Development Fund. For more information visit www.itransferproject.eu