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It is proposed that the Gulf of Maine Shipping Company would provide world class shipping and ferry service between major ports (Portland, Maine, Portsmouth, NH and others) and (Yarmouth, Nova Scotia). Service to be provided is transportation of tourists and commercial freight between Maine, USA to Nova Scotia, Canada and to do it by providing full service to all passengers.
The purpose of this plan is to secure funding to buy a modern RO RO/PAX Ferry in the 100-200 meter range; purchase goodwill documents with past service provider to ensure proper size and capacities are available to cater to tourism and commercial traffic; outfit and staff for 2010 season and to secure 12 months of operational funds. Current pricing on world market for Roll on/Roll off ferries range from $6-$35 million dollars, with 100-120 meter ships on the lower range. Staffing and outfitting for 12 months are estimated to be $3 million dollars with $3- $8 million for advertizing, repairs, fees, insurance and a cushion.
I anticipate a 5 year payback of principal as a base line fixed cost of $11 million, if the pay back was extended out to 8 years the base fixed cost would be reduced to $ 7 million, thus reducing cost to customer and increasing service use. Most ferry services charge by the person and the length of vehicle and I would use a reduced fare for the driver, fixed price per bus and use group pricing and online booking to provide discounts. With an even mix of tourist and commercial transportation, I anticipate an average fare each way @ $ 373 for 125,000 vehicles, 50,000 additional passengers @ $89, and additional profits from food vendors, hotel operation and vending machines. Total revenues anticipated @ $52,000,000. Fixed costs of $11 million, fuel cost of $18 million, salaries and benefits $ 3 million, a reserve of $10 million to cover advertising and repairs, leaving a proposed profit of $10 million.
These projections are based on a 36 week schedule with 3475 one way vehicles per week 350 per trip 5 days a week. These projections count a car and camper as 2 vehicles. Self drive campers, buses and trucks will be paying higher rates.