Announcement of business plan for 2024
Steam Packet Company has released its business plan for this year, including details about the future of its fleet and finances.
It revealed that the interior refurbishment of Manannan will ultimately cost around £2 million, up from a pre-Covid budget of £250,000.
Recent upgrades to the ship cost £1.1 million, with a further £790,000 budgeted.
This is to “try to match the passenger experience as closely as possible to the Manxman”.
The document also shows that the 2024 budget projects a 6.7 percent decline in the company's revenue, with cost increases of 10.1 percent and revenue growth of 5.1 percent.
This is despite a significant increase in revenue due to the 5.4% freight rate increase allowed under the Maritime Services Agreement.
This follows a year in which the board agreed to keep interest rates up to 5%.
The £4.7m cost increase reportedly reflects the “continued high inflation environment”, particularly in the first half of this year.
This includes the additional costs of retaining the Ben My Cree as a backup vessel and the loss of ownership of the Arrow while the company seeks to reach an agreement with the Ministry of Infrastructure to replace the BMC with a cargo ship. The cost of holding it down is also reflected.
The board has stated that it believes that maintaining the passenger ferries will result in reduced reliability and significant maintenance costs in the future.
In addition, Steam Packet has highlighted plans to spend £370,000 on significant work on its booking system and the development of a mobile app.
The business plan was announced following Mr. Tynwald's question to the Ministry of Finance from Rushen MHK Juan Watterson.
You can read the full text here.
Former Infrastructure Minister and Douglas Central MHK Chris Thomas told Manx Radio the public needed to have a say on the Maritime Services Agreement.
Manx Radio has contacted the Isle of Man Steam Packet Company for comment.
