Fraser Island Barge.

Submitted: Tuesday, Dec 20, 2005 at 08:52

ThreadID: 29014 Views:4960 Replies:5 FollowUps:9

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Member - Norm C (QLD)

Follow up on Post 28390. The ACCC action against Fraser Island barge operators was concluded in court yesterday. Here is the story:

'TWO former Fraser Island barge operators have been ordered to pay $1 million in costs and penalties after they were found guilty of predatory pricing and breaches of the Trade Practices Act.

Sidney Albert Melksham and Angela Kay Burger and their companies were fined after the Federal Court declared they had used predatory techniques in an attempt to eliminate a competitor.

In December 2000, rival barge the Manta Ray begun operating from Inskip Point near Rainbow Beach to Hook Point, on Fraser Island.

The Federal Court declared Melksham and Burger and their companies Eurong Beach Resort, Jaigear Pty Ltd, and Oser Pty Ltd, had a substantial degree of power in the market and "took advantage of that power for the purpose of eliminating and substantially damaging" their competitor.

Melksham and Burger implemented a policy so that the price was kept at $10 less than their competitor.

The companies also admitted to entering into a contract with another operator, who agreed not to supply barge services to Fraser Island at the same time as them.

Justice Kiefel ordered the following penalties: $500,000 against Eurong Beach Resort; $100,000 against Jaigear Pty Ltd; $100,000 against Oser Pty Ltd; $100,000 against Melksham and $100,000 against Burger.

He also ordered the respondents pay the Australian Competition and Consumer Commission's costs of $100,000.'

It is good that the 'little guy' has been protected, and the 'big guy' given a wack around the ears. But of course, the result is that while we have a choice of barge operators, we no longer have price competition. Such is life.

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Reply By: Member - Coyote (SA) - Tuesday, Dec 20, 2005 at 09:07

Tuesday, Dec 20, 2005 at 09:07

Should do the same for the Jardine River Ferries on Cape Yorke.. Years ago there was 2, one on the direct route.. then the government/ Aboriginal community set up this laughable thing that was miles of the beaten track, and made 100% from galvanised steel.. it was practically 2/3 across the river without even moveing (we used to joke that if you could just get a bit of a run up.. you could drive across the ferry and land onthe other side).. then ironically enough the only bit of the Jardine that you could attempt to drive across depending on wet seasons was miraculaously dredged out one year.. now I beleive thereis only the one ferry left operating.. funily enough I beleive it is the aboriginal community one which survived apparently thanks to government support enabling them to undercut the original Jardine ferry..I bet the ACCC didn't investigate that little "Hoo Ha'

AnswerID: 144656

Follow Up By: Footloose - Tuesday, Dec 20, 2005 at 12:24

Tuesday, Dec 20, 2005 at 12:24

Like many I've riled at that ferry, the cost and at times the operator. I once asked certain offocials why there wasn't a young lady in a rangers uniform and a smile saying something along the lines of "Wecome to our traditional lands. You'll find everything you need to know in this brochure. If I can be of help in any way please ask." (at this stage you're disembarking).

The people I asked nearly fell down laughing.

Now I don't mind helping the local economy along a bit, but to be met by a barge that goes 50m for $90 (at the time) and have to put up with an over the limit aggressive and incoherent drunken driver was a tad offputting.

No doubt things have changed since then.

They have....haven't they ??

FollowupID: 398218

Follow Up By: Eric from Cape York Connections - Tuesday, Dec 20, 2005 at 17:33

Tuesday, Dec 20, 2005 at 17:33

These days its $88 return $10 more if you have a trailer.
Just ask the fellow in the new 4.8L Nissan who thought it was a bit steep and tried to drive it and spent 24 hours in the river cost of salvage $2600
Not covered by insurance 4x4 wright off wife not impressed.

All the best
Eric

FollowupID: 398261

Follow Up By: Footloose - Tuesday, Dec 20, 2005 at 18:45

Tuesday, Dec 20, 2005 at 18:45

Eric, I have no problems with using the barge. I just expect better service for the price. A smile and friendly manner costs little. If you're the front guy then you are probably the only indigineous person that many travellers will meet. Yes I know that I'm dreaming but I'm sure it could be done, as it does happen in some other indigineous enterprises.
Top marks for some of the things that are happening in that area. Apparently the barge service isn't one of them :))

FollowupID: 398276

Follow Up By: Pterosaur - Tuesday, Dec 20, 2005 at 20:56

Tuesday, Dec 20, 2005 at 20:56

I was under the impression that the fee charged for the Jardine Ferry also included camping and access fees to the Injinoo country - for as long as you like - seemed pretty reasonable to me. When contrasted with the fees charged by some stations around the Gulf to drive across their leaseholds, it's a positive bargain !

BTW, when I was there, I crossed on the ferry 6 times for the same $88, (despite having lost my original receipt) and "free camped" (as well as some time in caravan park), in Injinoo (traditional owners) country for about 4 weeks, so it seemed a pretty fair charge to me - bet you couldn't get camping permits, ferry crossings as required anywhere else equivalent for less. At no time (and there were several drivers) did I witness any "aggressive and incoherent" behaviour, on the contrary, I found the ferry operators friendly, and cheerful, and would have missed the 5m. croc in the river if it hadn't been pointed out to me by the "driver".

What I really felt was a rip-off was the fee for the Daintree crossing - especially as it had been ruled as "illegal" by the courts - yet Douglas Shire was still charging travellers to use the ferry ! Haven't seen too many like complaints about that, but then I guess the people charging the fee aren't traditional owners !

regards
Terry

FollowupID: 398289

Reply By: Member - Oldplodder (QLD) - Tuesday, Dec 20, 2005 at 09:21

Tuesday, Dec 20, 2005 at 09:21

With the ferries operating now at Fraser, there is competition. And the price most probably reflects the true cost fo running them. Not a subsidised cost from Eurong.

I remember the $10 & $20 ferry trips, and you wondered how they covered costs.

While there is 3 ferries operating, there will still be bargees giving you a friendly wave as you air down on the edge of the beach.

AnswerID: 144658

Follow Up By: Member - Beatit (QLD) - Tuesday, Dec 20, 2005 at 09:43

Tuesday, Dec 20, 2005 at 09:43

Oldplodder,

Felt that way too. I guess the next instalment will be how these barge operators coluded to keep the price high so that they recover their losses and costs incurred over these years.

Kind regards

FollowupID: 398196

Reply By: Turbo Diesel - Tuesday, Dec 20, 2005 at 09:50

Tuesday, Dec 20, 2005 at 09:50

Bring back the days of the girls in Bikinis waving us on, honestly what next. Soon they will set up a stand at the entrance to the beach and sign us up when we are letting our tyres down. Those guys on the barges are worse than sydney cab drivers in cronulla (HA HA HA) everyone wants a piece of you and your wallet.

AnswerID: 144665

Reply By: Member - Peter D M - Tuesday, Dec 20, 2005 at 16:18

Tuesday, Dec 20, 2005 at 16:18

hi norm, thanks for the update. sid and eurong owned all the barges except for kingfisher so could afford to loose until the manta went broke. fortunatly costa and his mates had prepared for the long haul. the inskip fee was over $80 before manta started at $55. now after 5 years both charge $70 so good on you manta ray i'll keep supporting you. after the accc action started sid and eurong sold out to kingfisher so now you have manta ray against the rest imagine what you would pay without competition.
the manta ray now has a new twin sister running so less waiting. also kingfisher has bought the shell garage at rainbow beach and when you fill up the staff are told to tell all to pre buy their barge ticket in advance not knowing there are two to choose from. imagine if virgin were not flying.

regards peter

AnswerID: 144724

Follow Up By: Member - Oldplodder (QLD) - Tuesday, Dec 20, 2005 at 21:14

Tuesday, Dec 20, 2005 at 21:14

Thanks for the update.

Last time I went up there at the beginning of the year with m brother in law,he went straight to the manta. He goes a few rimes a year. Now I know why.

Never have been impressed by kingfisher.

FollowupID: 398291

Follow Up By: Turbo Diesel - Wednesday, Dec 21, 2005 at 11:08

Wednesday, Dec 21, 2005 at 11:08

Virgin and Quantas are looking at flying into Harvey Bay soon direct from Sydney and Melbourne, can u imagin the traffic on the island then with hire cars etc. You can guarantee there will be some price fixing of services once this happens. The deals under the table with Kingfisher and Eurong will be huge.

FollowupID: 398386

Follow Up By: Turbo Diesel - Wednesday, Dec 21, 2005 at 11:10

Wednesday, Dec 21, 2005 at 11:10

Furthermore i would not trust sid mel as far as i could throgh him and for those who have met him thats not far. Go the manta ray

FollowupID: 398387

Reply By: rocketsalad - Wednesday, Dec 21, 2005 at 13:17

Wednesday, Dec 21, 2005 at 13:17

Turbo Diesel,
Kingfisher and Eurong are owned by the same company!!! All barges (other than Manta Ray) are owned by Kingfisher! The court action this week is great news but the fight has moved to the petrol station.

The servo/camping store on the left on the way into town is owned by Kingfisher. As you pay for your fuel you will hear "would you like a barge ticket with that". This undercuts the little guy as they 4x4 driver thinks he needs to buy a ticket before he gets to the barge. (I bet that servo dosnt sell Manta Ray tickets).

The following is a repost but I wish to post it again.

(Posted from their news letter)

Manta Ray Barge News
dear valued customer, please take a moment to read this-

{YOUR CHOICE FOR THE FUTURE}

Thankyou for using the Manta Ray Barge today. We are an independent local family run business that has been operating for 5 years.

A number of retail outlets sell tickets for our competitors barges and they might try to tell you that you must have tickets in advance ... so they try to get all the cars before they get to the barge.

With MANTA RAY BARGE you don't need to pre-book or buy tickets in advance ... simply drive on and pay on our boat. If too many people are persuaded to buy tickets for the other barge or the other company before they reach us, Manta Ray Barge will no longer be able to offer you a choice.

So please remember the name MANTA RAY BARGE and tell your friends to come down to the barge and buy their ticket on the barge.

credit card facility now on board

END

AnswerID: 144853

Follow Up By: rocketsalad - Wednesday, Dec 21, 2005 at 13:22

Wednesday, Dec 21, 2005 at 13:22

how do you edit on this forum?

anyway the "town" i was talking about is Rainbow Beach. The servo further in town on the right is not owned by Kingfisher.You can buy barge tickets there but its best to BUY THEM on the MANTA RAY BARGE.

FollowupID: 398410