Fast ferry market

Executive Summary
We believe that there are opportunities for commercial banks to participate in lending to owners and operators in the Jones Act fast ferry market. At present, two financing companies dominate the US fast ferry financing landscape: debis and Caterpillar. The primary purpose of these institutions is to support their engine building affiliates by financing the newbuilding of fast ferries or financing the re-powering of existing ferries. debis and Caterpillar have played-and will continue to play-a vital role in developing the US fast ferry market from a newbuilding standpoint.

While engine financing companies currently dominate the market, we are of the opinion that, as more vessels are built and launched into this immature market, we will see the strengthening of operator balance sheets, the proven profitability of new routes, the viability of shoreside facilities, and increasing consumer demand. In our opinion, these factors will reduce some of the risks involved with lending to start-up operations, and will stimulate a market for niche secondhand vessel financing by US commercial banks which are willing to the commit the time and resources necessary to understand the technical and commercial elements of the fast ferry market.

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