SPC expecting to spend up to £120m on Manannan replacement

The operator says the purchase will be funded by profits and additional debt in the next five years

The Steam Packet Company says it expects to spend up to £120million on a replacement for Manannan in the next five years.

The ferry operator says the purchase will likely be funded by a combination of the group's profits and additional debt at zero cost to the taxpayer.

It adds that maintaining its operational fleet costs around £12.7million each year.

The government-owned company's comments come after the chief minister discussed the affordability of ferry travel for passengers and freight customers during an appearance on Manx Radio's Perspective last week.

Alfred Cannan said he's determined to see the firm continue to operate without a subvention, as taxpayer support would mean other areas miss out.

The Steam Packet says it's a welcome opportunity for the public to understand more about the context in which the organisation is operating, and a more in-depth update will be provided at the upcoming Isle of Man Government Conference.

The Sea Services Agreement - the contract between government and the Steam Packet that sets out the services it's required to provide - states a replacement for Manannan should be secured by 2026.