Government is starting negotiations with Barbados-based Fast Caribbean Limited (FCL) to provide the regional ferry service this year between T&T and four southern Caribbean islands, Transport Minister Devant Maharaj said yesterday. Proposed cost of a ticket is between US$25 and US$35 a person, Maharaj said at yesterday's post-Cabinet media briefing. Cabinet yesterday decided to have a negotiation team begin talks with FCL for the service. Foreign Affairs Minister Suruj Rambachan said the southern Caribbean service was discussed by this administration with Caricom states in 2012 and had been on the regional agenda since 2005. Maharaj said FCL was one of five companies which responded on the idea in October.
Others were the Australian firm of Austal, Elation Shipping, CFL, HMS Global Marine, Windward Trades Ltd. However, Austal and FCL were the only companies which eventually formally submitted proposals. Both were evaluated by a team comprising acting Transport Permanent Secretary Myrna Thompson, Port Authority's Leon Grant, attorney Nyree Alfonso and a maritime specialist. "The team recommended FCL as the service provider of choice," Maharaj added. A negotiating team will now work out the plan with FCL.
Team members included Thompson, The Port Authority's chief executive officer, attorney Alfonso and representatives of the Ministries of Finance and the Attorney General.
Maharaj could not immediately give details about FCL which he said was a Barbados-based consortium of individuals. He said the company would be offering a percentage of shares for local investors to join FCL. Maharaj said the ferry service will be private sector driven. Government will not be contributing any cash. FCL's negotiations with Government will be for contribution via fuel supply at a particular rate, Port facilities, lubricant supply and corporate tax concessions. FCL's capital required is proposed at US$12 million.
However, Maharaj said the company proposed to raise US$20million for the venture and has secured interest from Ansa Merchant Bank.
The service is projected to be launched this year and will be based in Port-of-Spain and extend in its First Phase to Grenada, St Vincent and the Grenadines, St Lucia and Barbados. FCL would charter from Montrose Global and Incatt a 112 foot wave piercer catamaran, similar to what is used on the Tobago ferry service. The company's strategic partner will be Bay Ferries which also operates with the Tobago ferry service.
The service will cater to foot passengers as well as vehicles and containerised and breakbulk cargo. Maharaj said the company proposes to offer 100,000 seats a year with the average price of a seat ranging between US$25 and US$35. The schedule proposes leaving T&T at 6 am and stopping at the four islands and re-arriving at T&T by 6 pm. FCL would also interface with other ferry services in the region and offer services to Guadeloupe and Martinique. Once commercial viability is achieved in Phase One, additional capacity will be added and the market will be expanded to other destinations, Maharaj said. Rambachan said the service would increase regional tourism and student exchanges among regional states. He said sacrifices for the service would be made if this were necessary, in the interest of regional integration. Trade Minister Stephen Cadiz said it would also expand trade for T&T goods up the islands.