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Core Objectives - Lower Cost of Ownership
 
The average life of dugout & small planked wooden boats today is typically less than 5 years due to the poor quality of wood that builders can find in the local market. The boat building timbers usually used in the past are now in demand for construction, mouldings,  furniture components, and fibreboard/plywood.

The average price for a finished boat on the mainland is now 2,500,000 Rupiah ($270), which means that over a 15 year period, an owner would expect to have to spend at least 7,500,000 Rupiah or $700 to $800. This is assuming that prices remain stable. This will not be the case even in the short term as boat building capacity will be under severe strain to replace the fleet. The normal application of the economics of supply and demand will inevitably give rise to an increase in the average price of a boat. The target cost for our kit boats is between $300 and $400 and based on current material prices that should be achievable for a kit of components. The labor will be provided by the owners in many cases or by village men trained in boat assembly. This should keep labor costs to the absolute minimum while creating employment in remote villages.

Target production costs and selling prices must closely compete favorably with traditional construction but never undercut existing boat builders. This now seems feasible even ignoring improved fuel economy, longer range and better safety features.
The projects core objective is to supply a new class of boat that replaces the traditional wooden dugout or planked boat. The new boats must be  affordable by the poorest of artisanal fishermen, and be capable of improving their livelihoods. Long term benefits will be hard to 'sell' to fishermen but fuel efficiency advantage will translate into a short term and very tangible advantage. The real aim is not just to produce a low cost boat but to reduces the ongoing cost of owning a boat and engine package. If a new design can use a smaller cheaper engine yet achieve better speed and range, then a higher selling price for the hull is justified.






Fat Canoe design - East Timor
Thousands have been built in
villages and many are shared
by families.

Initial target is to produce 50-60 such boats in a 26 week period and supply them through Island Aid's partners to ensure that they reach the the most isolated areas identified in this proposal. Subsequent boat construction will need to be funded by NGO's or direct donations.
Compounding the financial burden on the owner of the wooden dugout is that fact that it has limited load carrying capacity and cannot be easily or safely used to go very far offshore. As the stocks of inshore fish have declined, the ability for the old wooden outrigger to give its owner a decent income has proportionately declined.
The majority of the rural fishermen can not afford to buy their own powered boat. Typically only a handful of owners will own the powered boats in the average fishing village that supports 3-500 families. The majority of fishermen are employed at typically Rp50,000 to Rp100,000 ($0.60 to$1.10) per day. The catch belongs to the boat owner who may offer a bonus to his boat crews depending on market forces and performance.

This project looks to disperse ownership and allow many fishermen for the first time give them the ability to own the means of getting their livelihood. Micro-finance will be used as the mechanism to multiply the benefit of donor funding. Micro-finance also brings the following benefits:
Reduces the risk of free boats being given out and resold.
Engenders a sense of responsibility and empowerment.
Creates a sustained relationship between Island Aid and the fishing community so that other micro enterprise projects can be introduced to improve the lives of the communities
Allows a better class of vessel to be supplied that would normally not be affordable in the short term
Powers the wider adoption of sustainable technologies and village scale enterprise without further donor support.