Jump to content
Manx Forums, Live Chat, Blogs & Classifieds for the Isle of Man

b4mbi

Subscribers
  • Content Count

    1,068
  • Joined

  • Last visited

Community Reputation

341 Excellent

3 Followers

About b4mbi

  • Rank
    MF Guru
  • Birthday 03/05/1973

Contact Methods

  • Website URL
    http://

Profile Information

  • Gender
    Male
  • Location
    Doolish

Recent Profile Visitors

1,090 profile views
  1. b4mbi

    Steam Packet to be sold

    But if company is refinanced, the £76m debt to government gets repaid sooner, and the company has to utilise it's profits over the next 20/25 years to service the interest on the new £200m debt, and to build up a fund to repay the new debt. When your annual cash income from operating is approx £15m, you have a 25 year service agreement, your 25year bond debt is underwritten by government then you should have attractive proposition for institutions to purchase your debt. Simply £15m x 25 years = £375m. Enough to build up a fund to repay debt and to service the interest (depending on the rate!) Summary, yes it's a good deal! Both financially and strategically.
  2. b4mbi

    Steam Packet to be sold

    As simply as I can put it:- Initially total government cash out for the deal ---> £124.3m £48.3m purchase price for shares + £76m loan to IOMSPC. (page 5 here) IOMSPC re-finances itself on strength of long term New Service Agreements currently being drawn up Say for example IOMSPC able to raise £200m through a bond issue IOMSPC uses £76m of the bond issue proceeds to pay back the loan to IOMG IOMSPC has £200m-£76m = £124m cash left FOR NEW VESSELS. IOMG gets its £76m back, therefore effectively has spent cash of £48.3m.
  3. b4mbi

    News content

    to be fair, as alliterative, descriptive names for your business go, "Jurby Junk" was right up there. Location: Jurby Selling: Junk more succinct than " Useless Old Shite Peddlers of Jurby"
  4. b4mbi

    Reynoldsway part 2. £80 million to spend on ports

    I've stated before that business case for a stand alone cruise berth probably doesn't stack up and can only be considered as part of a wider port development, which takes into account all the other things @joeyconcrete states. The current major port is creaking and requires major capital investment. If there's anytime to do a deep water berth, it's whilst this capital investment on harbour maintenance is being done, as there are significant mobilisation fees to get over here sub-contractors with the necessary experience to do this kind of work. We are talking of 100 year lifetime investment in port infrastructure, that just isn't going to payback in 10/20 years. Where's the "business case" for the £21m prom redevelopment? What income streams does that generate? Will it of itself attract more visitors? That's even more difficult to quantify that the benefits of a cruise business, which at least you know you will receive harbour dues & passenger taxes, and more tourists. Day trippers are equally as valid as week stay visitors as a "tourist"
  5. b4mbi

    Steam Packet to be sold

    Don't think it would save much at all. I reckon ship CAD and design modelling has improved a massive amount since 1995/96 when Ben was probably designed. Plus Ben in my mind is a cargo ship with passengers bolted on as an afterthought, which was sort of evidenced when they modified her to add the quiet lounge and bar at the rear. However, I must admit I've not experienced other modern ferry travel to compare the passenger experience.
  6. b4mbi

    Steam Packet to be sold

    Agreed with the sentiment but Stena's E-flexers are over 200m long.... and won't fit in Douglas, which can take max 140m I'm not aware of a such a series of 140m ro-pax already developed (and problems ironed out), and hence why you have to build bespoke to fit into constraints of Douglas. Brings us back round to the port development debate!!
  7. b4mbi

    Steam Packet to be sold

    Very good analysis John. Every option should be considered, but I believe best (and cheapest) option for raising the finance for the new vessels is an IOMSPC bond issue underwritten by IOMG. There is a great opportunity here to get a modernised ferry service which is run primarily for the benefit of the Island and all relevant stakeholders. There is even a ship design company headquartered in the Island!
  8. b4mbi

    Reynoldsway part 2. £80 million to spend on ports

    Why are people constantly doing the Island down? Agreed Orkney and Lerwick maybe prettier towns, but Douglas isn't the only thing the Island has to offer! I would argue strongly we have a more diverse overall heritage offering than both Shetland and Orkney.
  9. b4mbi

    Steam Packet to be sold

    Original one was 1995 iirc. Probably some of athol street's finest, maybe John knows?!
  10. b4mbi

    Steam Packet to be sold

    Yes, you are correct there was a weakness in the user agreement (see later posts) which was not foreseen when it was written. Government own the only linkspan which the Ben (main ro-ro freight) can berth at, and they gave effective exclusivity to a private company of usage of that linkspan via the user agreement, which either iomspc or govt had option to extend to 2026. The other linkspan is owned by the IOMSPC and is sited where the under licence from DOI. So there is an element of, we were where we were, and a decision for the best interest of the Island needed to be taken. In the medium to long term, I'm confident it is a good deal for the taxpayer, but it will not immediately result in reduced fares and better schedules, but with right management it will in the medium term future. These are not things that can be fixed overnight (as of course we all recognise that investment in new vessels is necessary, even if timing of that is subject to debate) Maybe current management have "burnt their bridges" and it is time for some fresh thinking and strategy. Govt, as owners, now have chance to influence that, but in short term, didn't want to operationally rock the boat. There still has to be one in the morning!
  11. b4mbi

    Steam Packet to be sold

    My understanding is that they were operating in excess of the minimum requirements under the user agreement in terms of frequency of sailings and in terms of fares (I.e. not charging as much as they were entitled to under the UA) . Why? - it's surely got to be a trade off and PR exercise from the company perspective, to keep critisicm to a minimum from both public and government in order that there was a possibility of renewal of user agreement in 2026 if nothing else changed.
  12. b4mbi

    Steam Packet to be sold

    £160m is the cost to Goverment. Iomspc get the finance by issuing bonds to fund the new vessels. That debt sits with iomspc, not Goverment, and is funded by future cash flows. That would happen irrespective of ownership. All you are doing is showing that you still don't understand the deal, despite having it explained on this thread.
  13. b4mbi

    Steam Packet to be sold

    Or in reading?
  14. b4mbi

    Steam Packet to be sold

    You have selective reading ability and understanding. The new vessels are NOT forgotten about at all. Scaremongering nonsense to suggest it's a £500m disaster.
  15. b4mbi

    Steam Packet to be sold

    Well, yes, of course! I think two main drivers were: Gov't didn't have proper control of lifeline sea services (thought they did via UA, but turned out that UA couldn't prevent company being sold and loaded with unsustainable debt) All the profits were being stripped off Island, and NOT put back into the service or infrastructure. Purchasing it has remedied these two main issues.
×