Bahamas Ferries takes 15 hit

Mon, Oct 10th 2011, 10:10 AM

As one of Nassau's biggest shipping firms prepares to close its doors, Bahamas Ferries is also feeling the pinch and tightening its belt as the company temporarily axes two destinations.
Khaalis Rolle, the chief marketing officer, said North Andros and Governor's Harbour will be reduced to a seasonal service due to low demand and high fuel costs.
"Travel has contracted significantly to the Family Islands," he told Guardian Business.
"Leisure travel is a thing of the past - most of it now is for a very specific purpose.  The numbers are very low."
He added that the company has seen a 15 percent decline in passengers "across the board".

Rolle anticipated service to North Andros should continue in May of next year, and in the meantime, the route to Central Andros remains unaffected.
Governor's Harbour may also start-up again in May 2012.
Randy Butler, an Andros native, and the President of SkyBahamas, was disappointed by the lack of service to North Andros.
He called the ferry service a "cut lifeline".  "It connects the Nassau market to here and it's how people move," he said.  "Sometimes the airlines are too expensive.  It facilitates trade and will impact the island."
Rolle acknowledged that the ferry serves as a lifeline, "but we have to make decisions that deserve our entire business".
"We're just not getting out of this what was necessary to keep it going," he explained.  "We have seen a decline of 15 percent across the board."
Turning to the serious financial problems at Seaboard Marine, Rolle felt increased competition and high oil prices are to blame - and he doesn't anticipate the shipping and ferry industry will get easier anytime soon.
After salaries and benefits, oil and gas prices are the company's second largest expense.
"When you factor that in and what we paid last year for fuel before and the year before that, there is no comparison," he added.  "They (Seaboard Marine) were a casualty like everyone else."
Moving forward, he felt ferries and shipping companies shared a similar fate and set of problems.
Firms need to recognize opportunities to reduce their costs if they want to remain in business, he said.  That needs to be the primary focus.
Meanwhile, some firms will be about to absorb the competitive market and higher operating costs, while others will simply fold.
At Bahamas Ferries, the temporary closing of routes is just one measure among others to save on costs in hard times.
"We run our ferries far more efficiently now," he said.  "We ensure that our maintenance program keeps it in the best running condition to reduce fuel consumption.  We're making sure we're the right size in terms of staffing.  If we can save a couple of bucks, we do."  He called the future a "mixed bag".
Although cost-cutting measures will preserve many companies, overall, Rolle sees little indication that the industry will return to the robust numbers of the past.

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