Competition, page-2

From the news picked up on Kangaroo Island Connect (KIC):
- KIC Route: Penneshaw and Cape Jervis (Sealink’s existing route)
- High speed catamaran @ 30 minutes per trip
- $1.6 million Tasmanian-built catamaran to carry up to 95 people
- Catamaran could ferry up to 800 people a day (possible plan for up to 8 trips a day)
- KIC Plans to start operating from December
- Government working with KIC on approval to operate new service.

A quick call to the Sealink revealed that:
- David, related by marriage to a large land holder on Kangaroo Island, formed a company with $1 issued capital.
- Estimated the cost of operations (fuel, crew, maintenance) for KIC to break even would require for them to have 50-60% of K.I. Sealink (KIS)’s walk-up passengers. And many of Sealink's passengers book packaged tours through distribution networks like tour agents and direct selling which includes the ferry ride in the package.
- KIC claims to be able to cut 15mins off the journey. Sealink's position is that the ride would be very uncomfortable for the passengers at that speed in moderate swell conditions.
- Sealink has exclusive rights to Cape Jervis and Penneshaw up to 2024 signed with the government including the current schedule, 1hr before and after time of operation, KIC is not able to use the jetty they operate unless its midnight operations.
- Management is aware of this peers in the industry and welcome any peers who are willing grow the pie with the same far-sighted, long-termed investments they have constantly made to Kangaroo Island in marketing the island and bringing in the tourist.

Should KIC be granted the license to operate, they are likely to have trouble running a profitable business. For me, I see a very deep rooted moat in action with a blue ocean mindset. Good luck to KIC.