This observation was made by chief marketing officer of Bahamas Fast Ferries Khaalis Rolle while addressing the Rotary Club of Nassau on Tuesday.
There is a great need for reliability and dependability in this industry he said, given the industry covers and supports many transport variables.
Mr. Rolle said the industry represents several hundred million dollars per year and it is a significant contributor to the country’s Gross Domestic Product (GDP).
Historically, the public sector’s involvement, is through a government subsidy he explained.
The private sector participates through the investment in equipment and the ongoing operation and management of the system. He said 14 operators currently at the port are subsidised by the government, but they are more safety conscious than performance focused.
“Several of the vessels are old and antiquated. They are slow and they offer no modern amenities or accommodations,” said Mr. Rolle.
The industry, however, is beginning to show signs of modernisation apart from Bahamas Fast Ferries he said, adding there are three new vessels, the mail boat, the Legacy and the Lady Emerald.
He said in this vein, operators, including Fast Ferries intend to put more vessels in the market.
“When we look a the impact of trade liberalisation, the industry, that I think is naturally protected under any trade liberalisation agreement, and will likely be the last to go under the CSME and the FTAA, is the marine transportation sector.
“Currently, inter-island transportation cannot support many participants due to the limited demographics. Routes can only support one to two competitors,” Mr. Rolle said.
“Currently, the islands that we go to, outside of North Eleuthera have two participants, which at the end of the day, gives us a comfortable income in order for it to continue to be attractive to us.
“Moving forward, if we do sign any of these agreements, and transportation is affected or impacted by it, I don’t think those individuals will be competitive,” he said.
Mr. Rolle said that most of the individuals in the Family Islands who rely on marine transportation services are loyal to the incumbent operators, especially since, in some cases, their family ties to those communities.
“All operators conform to an international Maritime, Operational and Safety code. So unlike agriculture, or industry, the variability in production quality or economies of scale will not be a platform for competition moving forward.
“You have to be in a position where you are the lead competitor or one of the lead competitors for this to be attractive to individuals,” he said.
By Vanessa C. Rolle, The Nassau Guardian
