sealink travel ipo closes early, page-13

Thanks for posting the article Warnie, though the Makris ferry will be limited in what it can take from SLK.

Clearly SLK shareholders must face the fact that the Makris project, it seems, will be a loss leader to help him sell property on KI and Glenelg. The mere fact that they bother to promise at least 5 years of service illustrates his intentions here. Will he continue to operate after the 5 years at a loss once he has sold the houses??

What SLK investors must understand and take comfort in, however, is how delusional Makris is that he thinks that October next year is possible (this is the guy who ,after 25 years, is yet to get his O’Connell St. shopping mall off the ground).

As a former mariner myself, I have never heard of a boat of that description being specced, built, launched, trialled, accredited and insured and delivered in less than 2 years (usually 3 years is a swift timeframe for custom builds, but this I am sure is a more stock build) Concurrently there must be the execution of the Glenelg facilities and God forbid the Government (The SOUTH AUSTRALIAN Government) signing off on and getting anything done too quickly.

In short I will eat my hat if this thing is up and running within 3 years, by which stage SLK will have expanded into other markets, leaving the KI leg less of a concern.
Secondly, SLK has had the opportunity for years to do this, and in their wisdom have not followed the many punters that have tried and failed in the past.
If anything, perhaps SLK should ride on Makris’ coat tails and have a punt on property whilst Makris is doing the heavy lifting?

Anyway, Glenelg is around 60nm from KI. If Makris is to provide a 2hr trip (required to make his service relevant over the Cape Jervis option) he will need a high speed turbine ferry that can cut through rough water at high speed (vis. Warnies prior post) If the Glenelg trip must average 30kts, then the vessel will need to be capable of 40kts plus in the calmer metro waters before hurling its guests around for the deep water crossing.

The tour operators I am sure will be clambering over themselves to throw their Chinese and Japanese customers into such an experience and mum and dad who live in Glenelg will be delighted to chuck their kids into the mix.. the elderly.. anyone who gets seasick currently loathes the 45 min SLK crossing- all these people are willing to travel to the end of the earth if it means minimising the rough crossing.

For all those locals not from Glenelg with their suit cases, kids et al. Where do they park? How much per day? (Cape Jervis $15 per day)

Most importantly, high speed turbine powered boats (notoriously fickle) have difficulty running flat out for long distances and are better suited to shorter trips. The engines will fatigue very quickly and will spend more time being fixed than running IMO.

In all this indicates that the Makris Ferry will be limited in the number of crossings and the amount of business it could possibly take from SLK. As the weather worsens (sea breeze kicks in as early as 10am), the numbers get fewer, and the tour companies may not wish to forecast out too long when scheduling.

Will they accommodate cars and busses on this ferry? KI is a massive expanse to cover and the majority of people drive their own, or rented cars. If they will accommodate vehicles, then the boat must be bigger and heavier and a greater strain on engines. If not, Tour operators running out of anywhere other than Glenelg will need one bus for the mainland and another for KI.