The Isle of Man Steam Packet Company has published its business plan for 2024 which includes information about the future of its vessels, including the Mannanan.
The Mannanan is currently due to be replaced by the end of 2027, however in the business plan it reveals that the fast craft replacement is now assumed for 2030.
The company’s assumed budget for a replacement fast craft is £25m.
Manannan passenger experience
The fast craft recently underwent an interior refurbishment interior; which has exceeded its pre-Covid budget of £250,000.
The full cost is due to be around £2m, as £1.1m spent in 2023 and a following £800,000 budgeted for 2024.
Capital improvements include a provision of £790k for further upgrade to Manannan passenger accommodation ‘in an attempt to align the passenger experience with Manxman as far as possible’.
The Company’s IT expenditure includes a provision of £370k for essential eMaritme (booking system) work as well as migration of SteamPacket Holidays to eMaritime and the development of a Steam Packet mobile App.
Costs
The 2024 budget forecasts a 6.7% fall in EBITDA as cost increases of 10.1% exceed revenue growth of 5.1%.
Revenues increase broadly in line with the 5.4%, MCPI-linked fare increase permitted by the Sea Services Agreement (SSA). This follows a year in which the Board agreed to hold increases to 5.0% relative to Aug-22 MCPI of 10.4%.
The Company says that volumes are expected to be broadly flat relative to the continuing low-growth, economic background.
Costs increase by £4.7m (10.1%) a reflection of the continuing high, inflationary environment, particularly in the first half of the year.
The increase also reflects the additional cost of holding Ben my Chree as a back-up, as well as the cost of holding Arrow under ownership whilst the Company attempts to reach agreement with the DoI to replace BMC with Arrow.
The Board believes that the retention of Ben my Chree in semi-permanent lay-up will reduce her reliability and incur substantial future maintenance costs.
The full business plan can be found here.
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