STRADBROKE Island locals and visitors have been assured that services won't be reduced, despite proposed takeover of the island's original family operated ferry business.
Transit System's Brisbane-based chief executive CEO Clint Feuerherdt and Stradbroke Ferries chief CEO David Thomson signed off on the agreement, brought on in part by the looming ban on sand mining on the island by 2019.
Island residents and visitors "can look forward to hourly departures available from both the mainland and the island," Mr. Feuerherdt said.
He said the long-term sustainability of a 365-day-a-year service between the Brisbane Bay side suburb of Cleveland and Dunwich on Stradbroke Island should be assured by the planned merger.
"The transaction will result in smarter utilization of capacity on the route, without any material change in frequency of services."
Start of sidebar. Thomson added: "Merging the two ferry businesses is the best way to ensure a high-quality service to the island is maintained, which will help all island businesses."
The deal will require a tick from the Australian Competition and Consumer Commission because Transit's so-called "Big Red Cat" passenger and car ferry competes with Stradbroke Ferries' vessels.
And the two operators also compete on routes servicing the southern Moreton Bay islands of Lamb, Karragarra, Macleay and Russell.
But - while the sand mining ban played a part in the decision to merge the two groups - it is understood neither was making much money in recent times, with the downturn in local tourism another factor.
Low margins have made it difficult for either operator to reinvest in its business. And Transit Systems believes it can convince the national competition watchdog that only a single operator can be viable.
The purchase of Stradbroke Ferries by Transit will also let the former group's shareholders - many of whom have been investors for decades - cash out, though no figure was put on the deal yesterday. Stradbroke Ferries was founded by Frank Dobias - whose son, Frank, remains a major shareholder with his brother, Bill - and Geoff Ford in 1963.
Transit Systems is a privately owned umbrella organisation which runs public transport in a number of Australian cities.
It will also inherit the Moggill ferry, which allows vehicles to cross the Brisbane River to Ipswich.
