NPolitico July 25, 2013 Well-loved. Like or Dislike: 16 0 Th economy needs multi-modal transportation to spur and promote economic growth, development and sustainability. However, political legacy and “done deal” declaration aside, the VI has a big decision to make. The Majority of Virgin Islanders will have to weigh in and decide if it is good financial stewardship with limited resources to invest up to $415M on a runway that may be underutilized and may stand as a white elephant. The question is did an objective cost-benefit analysis support the runway extension? The project will have to be funded through a public private venture (PPV), for the VI does not have the cash on hand nor have the borrowing capacity to fund it. And if it did, it will come at huge opportunity cost; the project will be funded at the expense of other critical projects such as the hospital, secondary schools, roads, sewage, water, energy, public safety….etc. Well, if not the extension of TBL, what transportation mode should be invested in? Instead of investing so heavily on TBL the VI should strongly consider investing approximately 10% of the proposed airport extension cost on upgrading marine port facilities to modern standards. Additionally, St. Thomas is in close proximity and has an international airport. Why can’t the VI use it to effectively and efficiently move locals and visitors in and out the country. Of course, the level and quality of ferry service must be improved. Anguilla uses the proximity of St.Maarten International Airport to its advantage in moving residents and visitors in an out Anguilla. Moreover, the commercial aviation business is a capital-intensive business with huge operational cost. Each takeoff and landing entails huge fixed cost. Consequently, if airlines cannot consistent cover the available seat miles (ASM) with paying passengers, they will not start or continue a route; it is all about passenger load factor(PLF). TBL can have the longest runway and the most modern land side facilities in the region, direct flights to and from the US, Europe, Canada, South America or Asia will not be a reality if the passenger loading is not there. The VI needs to pause, analyze and review the cost-benefits of this expensive venture before leaping into this deep, wide ocean.
Posted on: Fri, 26 Jul 2013 20:07:24 +0000
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