Ferry company proves rationalization is key when costs escalate

Every day, patrons of the Paig River Ferry Service are treated to a scenic tour of the historic river on board a state-of-the-art boat, which glides over the water at a leisurely but constant speed.
A boon to sightseers and commuters alike, this well-paced movement is both a marketing strategy and a cost-saving measure of the Nautical Transport Services Inc. (NTSI), the company that operates the service.
According to Poli Torres, NTSI operations manager, their boats run at a reduced pace to cut down on fuel consumption and at the same time make ferry transport more attractive to people who want to explore the Pasig River.
"When diesel prices went up, we knew we had to find a way to cut down on some of our costs," he explains. "We came up with this solution: reduce our boat speed from 18 knots to 12 knots per hour. It reduced our fuel bill by over 50 percent."
Indeed, the total fuel bill of NTSI's modern and fully airconditioned units has gone down from a whopping P3 million to only P1.5 million.
Page 2: Staggered boat schedule
Also, to further save on fuel, the ferry services are now run on a staggered boat schedule. Fewer boats are deployed during off-peak hours; on weekdays, in particular, the number of boat trips has been reduced from 30 to 20 per day.
"By rationalizing our boat schedules," Torres says, "we eliminate the inefficiencies particulalrly between 10:00 a.m. and 3:00 p.m. when there are fewer passengers. The wear and tear on our boats are also reduced, thus prolonging our maintenance cycles."
The NTSI operates six Australian-designed catamaran boats for its fery routes. Built at the cost of P25 million each, they are equipped with modern engines and such amenities as air-conditioned cabins and on-board audio and video equipment.
With fuel prices expected to remain unstable despite recent rollbacks at the pump, Torres urges entrepreneurs to cut back on fuel consumption by using their land transport only when necessary.
Since starting operations in February of 2006, however, the NTSI have been facing an uphill battle trying to change the riding mentality of commuters.
It is not giving up the fight, though. As Torres always advises motorists and commuters, "Rationalize the routes you ply; if you can do multiple transactions in just one trip, the better. Learn to schedule and manage your trips with cost savings in mind, and when doing personal errands, commute as much as possible."
Nautical Transport Services Inc.
Pasig River Ferry Service
FCI Compound
Road 12, Anonas St.,
Sta. Mesa, Manila
(02) 715-4096