Radio interview 28th May 2004
Further to the publishing of the transcript of the Radio interview with our team on the 28th May we would like to enlarge and clarify certain statements made.
Firstly in respect of freight charges Ex-UK and the expectation of a decrease as mentioned in the High Point Rendel Report. Speaking as the Managers of the RMS St Helena and the body charged with trying to reduce the overall operational costs of the shipping/passenger service we would advise that any reduction means that an increasing burden is put on the subsidy provided for the RMS operation. The Executive Council in reviewing our Business Plan has asked for further clarification of the various cost elements which make up the total shipping cost. Therefore until such time as this work has been completed and a decision made on freight levels it was premature of AWSL to second guess Exco's ultimate decision on freighting charges. In respect of those charges applying to Off-line cargo we have to compete with others including the Road haulage industry in Southern Africa. However, every piece of Off-line cargo the RMS can carry assists in reducing the dependency on the subsidy.
In respect of cheapest air fares to the UK AWSL can provide fares on South African Airways associated with travel on the RMS as indicated below,
Cape Town - UK single fare in the region of £390 subject to airport tax changes.
CT - UK - CT return fare in the region of £800 subject to airport tax changes.
UK- CT - UK return fare is in the region of £740 subject to airport tax changes.
UK - WB - UK return is in the region of £980 subject to air port tax changes.
WB - UK - WB return is in the region of £1040 subject top airport tax changes.
The additional air fare from Walvis Bay to either Cape Town or Johannesburg will be in the region of £120 each way. However, this must be seen against the saving on the sea passage fare by disembarking in Walvis Bay rather than Cape Town.
SHG has agreed that a special fly cruise rate will be available for sale only on St Helena to residents. These prices are for St Helena to Walvis Bay and are only available when associated with a flight out of Walvis Bay to Cape Town or the UK.
Standard fare with no flight attached "Saints" Package Fare in conjunction with Flight (£120) To WB, To CT
4BO SH to WB = £130 + £120 to CT = £250 £218, £288
2Bi £150 + £120 = £270 £233, £309
2Bo £165 + £120 = £285 £244, £325
2Bos £180 + £120 = £300 £255, £340
2Biw £195 + £120 = £315 £266, £345
T4 £220 + £120 = £340 £285, £371
T4S £230 + £120 = £350 £293, £386
T3 £250 + £120 = £370 £308, £407
T2H £500 + £120 = £620 £510, £680
T2HS £545 + £120 = £665 £559, £742
T2 £600 + £120 = £720 £608, £803
T2S £652 + £120 = £772 £652, £865
T1 £772 + £120 = £892 £772, £1025
T1S £832 + £120 = £952 £832, £1107
Flight prices are also in part subject to exchange rates for the Namibia to RSA portion.
Please add a further £10 for Walvis Bay Port to WB Airport bus/taxi charges.
These "Saints" package fares are priced on a one way basis, but are only available as a return fare and so prices must be doubled.
When these "Saints" Fly sea passage package fares using Walvis Bay are compared with the standard new sea passage price for St Helena and Cape Town, it will be seen that these are cheaper bringing a saving in total cost in the region of £145 for T1S cabin and £28 for 4Bo cabin. This is due to the SH to WB passage costs being around 25% cheaper than the SH to CT costs.
It must be borne in mind that flight costs are subject to the best deal we can obtain at the time of booking and that airport taxes do vary from time to time. Currently airline schedules for South African Airways and Air Namibia are only published for a six month period and prices and times do change.
In respect of comments made on fares between St Helena and Ascension Island there are a number of issues to remember. (1) The current fares were historically agreed by SHG Line when the RMS started trading in 1990 and AWSL inherited these in 2001. Fares have only been subjected to one 3% since we started managing the ship. (2) A number of people travelling on this route have their fares paid by their employers. (3) The AI Boatage charge was incorporated in the passenger fare at £27-50 (as charged by AIG) to ensure that where possible this element was then paid by employers.
As far as AWSL starting a freight war between Cape Town and Walvis Bay is concerned there is currently no feeder service for Break Bulk or containers between Cape Town and Luderitz Bay and back. The total amount of cargo the RMS will attract from other carriers (after the islands cargo has be loaded first onboard) is insignificant in terms of the volumes currently moving in the region. There is a large amount of cargo going by road from the Cape to Namibia and we hope to attract business from the roads as well. The Namibian Government are trying to reduce heavy road traffic use because of damage being done to road surfaces which generates additional maintenance expense. The other aspect is that calls at these two ports for cargo also gives us additional passenger value for cruise passengers hopefully attracting more passengers to the ship. The RMS has two chances at each port for additional revenue, and trying to reduce the RMS's subsidy and improving access to the island is what all of this is about. AWSL is trying to find as many areas where additional revenue can be generated by greater use of the RMS for passengers and cargo without detriment to her service to the island.
Captain W A Langworthy
General Manager
St Helena Shipping Service
Andrew Weir Shipping Ltd.