Public 'needs to be involved' in Steam Packet decision-making says MHK

Business plan for 2024 published

The Steam Packet Company has published its business plan for this year which includes details about the future of its fleet and finances.

It reveals that an interior refurbishment on Manannan will eventually cost around £2m - up from the £250,000 budget pre-Covid.

A recent upgrade to the vessel cost £1.1m and a further £790k has been budgeted for.

This is to 'attempt to align the passenger experience with Manxman as far as possible'. 

The document also shows that the 2024 budget forecasts a 6.7 percent fall in earnings for the company as cost increases of 10.1 percent exceed revenue growth of 5.1 percent.

This is despite revenues increasing broadly in line with the 5.4 percent fare increase permitted by the Sea Services Agreement.

It follows a year in which the board agreed to hold increases to five percent.

The costs increase of £4.7 million is, reportedly, a reflection of the 'continuing high inflationary environment' particularly in the first half of the year. 

It also reflects the additional cost of holding the Ben-my-Chree as a back-up vessel and the cost of holding The Arrow under ownership whilst the company attempts to reach agreement with the Department of Infrastructure to replace the BMC with the freight ship.   

The board says it believes retaining the passenger ferry will reduce her reliability and incur substantial future maintenance costs.

In addition the Steam Packet highlights its plans to spend £370,000 on essential work to the booking system and the development of a mobile App.