There is, at the present time, a unique opportunity to develop a robust maritime connectivity system for the islands of Cabo Verde. This exceptional opportunity comes from an explosive investment in tourism as well as the necessity to integrate the island of Brava with the rest of the archipelago. All this comes alongside the national government's need to develop a secure and reliable inter-island transportation network.
Cabo Verde Fast Ferry, S.A., in partnership with the Cape Verdean government, has positioned itself as an innovative and trend-setting company, dedicated to providing speed, comfort, and dependability to satisfy inter-island cargo, tourism and business transportation needs.
The Republic of Cabo Verde is currently experiencing significant changes in all sectors and, as a result, in 2007, the country was promoted to a "Medium Development/Income Country" by the United Nations. Despite these positive developments and renewed optimism, the reality is not the same for all the islands that make up the archipelago. The situation is particularly worse for the southern islands of Maio, Fogo and Brava. Experts believe that Brava, the most isolated of all, will regain its economic place in Cabo Verde once the transportation problem is solved. This is an opportunity which needs to be seized for effective development of Brava, through a multi-year transportation strategy.
According to most recent data from the Cape Verdean Port Authority (ENAPOR), approximately 350,000 passengers circulated the country in 2007. The LloydsMIU vessel call data for Praia, Santiago appeared to be the most complete, with 303 ferry calls in 2006 and showing slightly more than 100 passengers per call. In the same year, ENAPOR showed a total of 283,000 tons of cargo hauled around the archipelago.
For maximum efficiency, Cabo Verde Fast Ferry has chosen to develop the market in two phases - implementation and expansion. In the implementation phase, the company expects to transport 65,000 tons of cargo and 185,000 passengers during first year of operation, featuring routes to the islands of Brava, Fogo, Praia, Maio, S.Antao, S. Nicolau, S. Vicente, Sal and Boavista.
The mission of Cabo Verde Fast Ferry is to provide innovative, short- and long term inter-island transportation solutions designed to exceed customer expectations, increase shareholder value and to ensure continued success of the company and its family of employees.
4. Keys to Success
• High demand for dependable, fast and comfortable inter-island connectivity. Purpose-built and fuel efficient fast ferries able to transport cargo and passengers with low overhead expenses. Strong partnership with government of Cape Verde. • Growing investment trends in tourism and business sectors. • Marketing power - convergence between business and community passion to integrate the islands into a single economy. • Cabo-verdian company; fully owned and operated by successful Cape Verdean entreprenuers. First to forge global community participation and strong partnership with the government.
5. Market Analysis Summary
The initial market focus for Cabo Verde Fast Ferry during its implementation phase will include thousands of foreign and domestic traffic that already exist and continue to grow but are unable to get around due to the lack of predictable inter-island connectivity.
According to the most recent data acquired from the Ministry of Tourism, foreign investment grew from 17 million in 2001 to over one billion dollars in 2006. A total of 81% of the value was spent in preparation for the tourism industry and the numbers continue to climb even higher with new investments such as Santiago Golf Resort ($80M) and Flamengo Golf Resort ($60M), both identified for the island of Santiago. The Cesaria Resort, one of the largest tourist resorts on the rchipelago, promoted by Dubai's Profile Group, will receive 500 million euros for development. The first phase of the project is estimated to cost 125 million euros and will cover 400 hectares, comprised of a luxury hotel with 250 rooms and 1,000 apartments, as well as leisure areas. Another major investment promoted by British investors is the construction of two tourist resorts, one on Sal Island (Murdeira Beach) and another on Sao Vicente (Baía das Gatas), with a total investment of 2.5 billion euros. These two resorts include four golf courses, at a time when others are being developed on the archipelago, as well as marinas, shopping areas and hotels.
The British newspaper Financial Times dedicated a series of articles on Cape Verde in its November 13, 2007 edition. The country’s economic situation, its musical rhythms, and a portrait of some of its political figures are among the subjects of the Times’ reports, which sought to shed light on reasons behind English investors’ gold rush to the small Atlantic archipelago.
A new international airport was inaugurated in Boavista in 2007 and another was inaugurated in S. Vicente in 2009, bringing the total to 4 international airports. Furthermore, the recently completed international airport of Praia is designed and projected to handle 1,000,000 international passengers per year by the end of 2012. As the stream of income increases, domestic travel will also see a tremendous jump in inter-island pleasure trips among Cape Verdeans. Islands such as Brava, Maio, SNicolau and Fogo, with limited commerce options at the moment, will experience heavy demands for the import and export of goods and services.
6. Competitive Edge
Our competitive edge is our position as a strategic ally with our travelers, who are clients more than customers. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. For us, every customer is a potential sales person - "viral marketing".
Our second competitive edge is our fleet of new, fast, and comfortable ferries in comparison to the old and delapidated vessels currently serving the market. Comfort and dependability is a prize commodity in Cabo Verde when it comes to inter-island travel.
Third would be the utilization of technologies and the tools of the 21st century to manage and consistently reduce overhead expenses.
Fourth, Cabo Verde Fast Ferry is the only transportation company that trades on the Stock Exchange of Cabo Verde with strong backing by the government of Cabo Verde.
7. The Investment Offering:
Fast Ferry Bond: FIXED RATE 9% 2015.
An amount of 1,500,000 (one and a half million) bond certificates were offered in May of 2009 with a nominal value of 1,000 ECV (one thousand escudos, or approximately 9 Euros), each for a total sum of 1,500,000,000$00ECV (one and a half billion escudos) and a six year maturity. Yearly dividends are calculated and payable semi-annually in successive installments until investment is liquidated at the maturity date.
Anyone can request to purchase FastFerry: Fixed Rate 9% 2015 bonds at the Stock Exchange of Cape Verde (http://www.bvc.cv) - ticker symbol CFFA.