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| Island Ventures Ltd. Is now preparing to start the refit of Kwai to a full sailing ship. She has been operating on her chosen cargo route for a year and is now breaking even in this trade. After 3 years of refit, we took her to the Pacific to operate with a small sailing rig which has been very successful harnessing wind power on both legs of our route. We are burning less than half of the fuel we would need under power and made several trips where we rarely used the main engine. We now plan to finish her rig as a topsail ketch and add the cabin forward for 8 paying passengers. As we have established Kwai in a regular trade, we want to make her time out of service as short as possible to keep our cargo customers happy. We plan to establish a shore base on the dock in Honolulu or Kawaihae. The Hawaii Port Authority has supported our operation all along and we are negotiating a reasonable lease where the ship could lie alongside. Some of the work such as extending the top deck aft and refitting the cargo hatch system will happen between voyages. The masts and rigging would be constructed ashore and the forward house with passenger accommodation would be built to be lifted aboard as a unit. The work would be carefully scheduled to remove the wheelhouse, relocate the winch in the cargo hold, and set up the rig in as short a time as possible. We seek to raise $350,000 to fund this last part of the conversion of Kwai to a full sailing vessel. Investors will receive shares of the Cook Islands registered company, Island Ventures Ltd, and on the same basis as the holders of shares from the current investment totaling $645,000 in cash and “sweat equity”. Return on new investment will be realized much more quickly than our current patient investors, but all shares and accompanying benefits and privileges will be the same. From the start we have sought investors who will participate actively in the venture with the completion of the project accommodations and lifestyle aboard will be greatly improved. The enthusiastic response from all the islands we visit has been wonderful. The business has gone very well with few claims and 100% payment of freight. The islanders love having a new ship and we always stay a few days to enjoy their specks of paradise. We intend to build on this community of friends to support our voyages, offering a unique adventure for our passengers. Financially we are breaking even now with cargo and trading operations. The direct operating costs are about $600/day, and we are earning $1000/day this year, enough to cover long term costs. We will add $1200/ day in passenger revenues once the refit is finished, more than doubling our gross income. Additional savings will come in fuel costs as we will sail up to 90% of the time with a full rig. Operational expenses will increase as we raise crew pay and hire an office manager ashore, but we still look to operate at a minimum net profit of $500/day for 250 days a year. This will yield an annual return on investment of 12%. The capital value of the vessel as a full sailing ship in a profitable and unique business should be considerably more than the total investment. Further details are availble upon request. Senior Captain- Brad Ives Below is the mission and some general interest items about what we are doing: The Mission The purpose of KWAI is to carry cargo, passengers, and sail training cadets in a well found sailing vessel between the islands of the Pacific Ocean. The objectives include: · To finish the refit of the KWAI as a strong safe sailing ship for world voyaging, with accommodations for 12 paying passengers and cadets and 8 professional crewmembers. · Establish the vessel in a proven trading route between Hawaii and Rarotonga in the Cook Islands with trading stops in the Line Islands (Christmas, Fanning and Washington) and the Northern Cooks. · Build solid non-exploitive relationships with the Pacific Islanders by means of trade, local tours for the passengers and fetes aboard and ashore. · Incorporate facilities for divers, researchers and scientific personnel to make the ship suitable for expedition charters.
The main goal of this project is voyaging on the high seas. The proposed service as a packet vessel between Hawaii and the Cook Islands offers excellent year round sailing across the trade winds in both directions. Adventure travelers and crew will immerse themselves in a life at sea, sharing the opportunity to learn seamanship, navigation, rigging and ship and small boat handling. A round trip schedule of two months will allow for half the time at sea and half the time in port or at anchor. While trading at anchor in tropical lagoons, the islanders will guide the passengers on shore expeditions. The ocean passages will be memorable, but so will be the relaxed stops at very remote islands. Why a Sailing Vessel? A
powerful sailing ship, driven only by the free energy of the wind, dependent
only on nature and the resources she carries aboard is not only a work
of art and beauty, she is a proven, economical vehicle of transportation
where fuel is expensive often scarce. The islands we will supply are
far flung and serviced only by subsidized shipping. Our sails and paying
passengers will be the subsidy, and the fuel in our tanks will often
go ashore to run island generators, while the ship quietly rides the
waves in the timeless tradition of her pedigree. For centuries these islands were supplied by infrequent ships arriving to sell their cargos to the local inhabitants. KWAI will be no different as we carry foodstuffs and construction materials for sale. Even in these modern times many of the small islands on our route are still not supplied on a regular basis. With approval and support from the local governments and island councils we hope to provide a comprehensive service. While we plan to sell our goods at a profit, we also endeavor to offer fair prices and accept trades. For example, fish caught by the islanders, traded for food stuffs will be frozen for later sale to restaurants in Rarotonga and Hawaii. Adventure Travel opportunities Adventure travel remains a lucrative niche in the tourism industry. We offer a unique chance to visit remote islands, most accessible only by ocean voyages. On our vessel, passengers will be able to witness and take part in historical sea travel and trading. Long term, rewarding relationships will be formed with the island communities and our passengers will be happy to meet the locals and able to pay for guided fishing, snorkeling, or exploring trips. In the age old island style, bountiful luaus ashore and lively parties aboard will be inevitable. We will appeal to the eco-tourist as well as sail power is an environment-friendly way to see the world. The Pacific Islands will continue to offer risk-free destinations where political turmoil can be left behind. Expedition charters We project 3 trips per year between Hawaii and the Cook Islands with other time available for expedition charters in the Pacific area. Her cargo hold and strong cargo gear will allow her to hire out for dive, salvage, scientific or movie charters. Her sails can carry her cheaply to remote spots wherever work is found. With her limitless range, 24 comfortable bunks and a large cargo hold which can be fitted out to the charters’ needs she will have wide appeal in this market. We have already started negotiations with a well known oceanographic research institute for possible charters. These would be scheduled well ahead of time allowing us to book passengers and cargo for the sea voyage to and from the charter locations. The Ship KWAI
was built as BAYERN, in 1950 as a herring fishing vessel in Bremen,
Germany with a short ketch rig to keep her steady on the grounds. She
is 120’ long on deck, 179 gross tons and carries 250 tons of cargo.
In 1963 she was sold to Norway and ended up in the sand and asphalt
trade. Island Ventures Ltd purchased her in June 2002. She had had a
fire in the engine room and aft accommodations and the main engine was
seized. The survey showed the hull to be in excellent condition and
she was re-powered with a rebuilt GM 12-71. During the summer KWAI was
fitted with all necessary navigation electronics and safety gear and,
registered as a cargo ship in the Cook Islands, sailed for Aveiro, Portugal.
After purchase in May, 2002 KWAI was outfitted in Norway for a September voyage to Portugal. She lay in Aveiro, Portugal for 18 months taking advantage of 2 good shipyards and over 500 years of experience outfitting ships. There we refit the ship from the bottom up. Tasks accomplished include: ·
Complete clean up and painting of burned areas of ship Refit – what’s to be done KWAI was bought as a sound hull with a proper shape for a sailing ship. As in most similar conversions we will end up with just the hull as original. The project list includes: ·
Removal of wheelhouse Management Team Captain Brad Ives is the President of Island Ventures Ltd and the leader of the KWAI project. He has 25 years experience in traditional sailing and commercial seafaring. KWAI is his third project converting an old ship to a sailing ship. In the 1970’s he was the captain and part owner of the SOFIA, a 90’ Baltic Trader converted to world voyaging. She carried cargo in the West Indies and later trade goods, from sugar to ebony elephants, through the Pacific and Indian Oceans. In 1978 he purchased the EDNA, a 100’ ex fishing vessel in Denmark, refitted her in Portugal, and operated her as a sailing cargo vessel for 9 years, trading mostly in construction materials. Tropical timbers for boat building became her specialty and Brad continues to supply these to boat builders throughout the US. In 1978 he earned the US Coast Guard Master of Sail License for up to 300 gross tons, now upgraded to 500 tons. Under his command SOFIA sailed around the world and EDNA made 3 Atlantic and 8 Pacific crossings. Brad has extensive experience building boats as well, installing engine, electrical, plumbing and navigational systems aboard the yachts built at Gannon & Benjamin Boatyard on Martha’s Vineyard. He is uniquely qualified to undertake the conversion of KWAI and to direct the trading and sailing operations throughout the Pacific. Island Ventures Limited will hire a full time captain when the ship is operating and Brad will serve as general manager and relief skipper. April
Fountain or Mama Kwai, is Brad’s wife and is the Operations
Manager for the business. She brings many years of successful business
experience in both her own and other businesses. She has done 3 ocean
crossings as the head cook aboard the KWAI and sailed on numerous
sailing ships. Mahalo nui loa/Kia manuia
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