Economic feasibility of a fast car-ferry service

Abstract

Since the early nineties, the introduction of new High Speed Car-Ferries has had an important effect on waterborne transportation networks. In some of the most characteristic routes around the globe, a substitution process of conventional ferries by high-speed units in a certain domain of distances is taking place. The purpose of this research is to analyze the economic parameters that define the Fast Ferry market and to study the economic feasibility of such a service. The demand for the service, the cost structure of both the fast car-ferry and the conventional ferry as well as competitive issues characteristic of the industry will be analyzed to determine the feasibility of a high-speed service. Special attention will be paid to the possibility of substituting conventional ferries with fast car-ferries.