Will Chapman <[EMAIL PROTECTED]>
wrote:

>The net result of this is that existing boats will spend more 
>time on the water (presumably increasing the cost of maintaining
>and monitoring to BW) without producing any significant 
>additional direct income. 

As it turns out, that presumption seems to be incorrect.

I was strongly in favour of a usage element in navigation charges,
based on it.  However, BW did some research, and came to the
conclusion that the marginal cost to it of a vessel navigating is so
small that it can be ignored.  

It (and I) have therefore concluded that usage-based charging can't be
justified.

However, another conclusion is that "boats spending more time on the
water" (surely they were on the water anyway?  But I assume you mean
'navigating on the water') would *not* increase maintenance or other
operating costs of BW significantly.

In other words, for BW it is fixed costs that count the most, indeed
almost entirely.  

Adrian


Adrian Stott
07956-299966

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