Relaunched high-speed ferry loses $4.2 million
By BEN DOBBIN
26 October 2005

http://www.catfastferry.com/images/photo_fastferry.jpg

ROCHESTER, N.Y. (AP) - A giant car-and-passenger catamaran that zips across Lake Ontario at 50 miles an hour lost $4.2 million in its first two months back in service but ridership picked up in August when more than half of its 774 seats were filled, the city said Wednesday.

The number of passengers totaled 45,811 in August, up sharply from 26,320 during the ferry's first full month of operation in July. The average ridership on its daily crossings between Rochester and Toronto jumped by two-thirds from 239 passengers in July to 402 in August.

The city of Rochester bought the Spirit of Ontario for $32 million at an auction in February and hired Bay Ferries Ltd. to run it. The vessel, which was relaunched June 30 after running for just 11 weeks in 2004, had been projected to lose around $700,000 in startup and operating costs this year.

Startup expenses alone, however, ate up $2 million this year, and operating losses through August were $2.2 million, the city said in a report. It blamed the shortfall on lower-than-anticipated ridership.

The city, which has an $8 million cushion set aside for projected deficits through 2007, did not reveal passenger loads or financial results for September. But the report cautioned that Hurricane Katrina brought a dramatic rise in fuel costs and "caused a temporary change in consumer behavior and travel patterns."

The relaunch did not provide enough time for many tour-group bookings, which could boost ridership in 2006, the report said.

The five-story-tall ship, nicknamed "The Cat," zooms across the lake in two hours and 30 minutes. A car trip around the lake usually takes three to four hours -- and far longer when there are traffic tie-ups at the border.

Bay Ferries, a Canadian company, also manages a similar high-speed ferry that has hustled between Bar Harbor, Maine, and Yarmouth, Nova Scotia, since 1998.

Walk-on fares during peak sailings through Sept. 5 were $32, and $35 for most cars. The ship -- almost a football field in length -- can carry 220 cars, or a smaller number of cars and as many as 10 trucks and buses.

The maiden run in spring 2004 was postponed for six weeks after the Australian-built ship sideswiped a pier in New York City near the end of a round-the-world voyage and underwent $1 million in engine repairs.

It then sailed for just 80 days before operator Canadian American Transportation Systems shut down last September with $1.7 million in debt.

The private company blamed mainly regulatory hurdles -- chiefly the failure to get approval from U.S. Customs to carry commercial vehicles, which could have injected up to $18,000 in daily revenues. That issue has now been largely resolved -- trucks are allowed on board under certain restrictions.

Senators: Passport rule could slow ferry business
By DEVLIN BARRETT
27 October 2005

WASHINGTON (AP) - The new passport requirement for northern border crossings could hurt business on the fast ferry running between Rochester and Toronto, New York's senators warned Thursday.

Sens. Charles Schumer and Hillary Rodham Clinton met separately with Canadian ambassador Frank McKenna to discuss their concerns with the rule requiring passports at border crossings by January 2008.

After meeting with McKenna, Schumer said the fledgling business on the ferry could be hampered if homeland security officials decide it falls under the category of a sea crossing. Under the new rule, passports will be required in 2007, a year earlier, from those crossing by air or sea.

Clinton said she is worried the passport measure would hamper tourism at a time the fast ferry -- actually a giant car-and-passenger catamaran -- is still trying to turn a profit.

The City of Rochester bought the vessel in February and hired an operating company to run the service. Officials announced Wednesday starting losses of $4.2 million for the first two months back in service.

The Department of Homeland Security faces lobbies from elected officials on both sides of the border to come up with an easy, less expensive alternative to the border passport requirement. A U.S. passport now costs about $100.

DHS officials have pledged to find a convenient alternative but have yet to say what that might be.

High-speed ferry makes season's final run across Lake Ontario
By BEN DOBBIN
Associated Press Writer
12 December 2005

ROCHESTER, N.Y. (AP) - A high-speed ferry that shuttles between Rochester and Toronto ended its rocky second season Monday as passengers became as scarce as Lake Ontario bathers.

The 55-mph car-and-passenger catamaran, which has eaten up more than $5 million in startup and operating costs since being bought by the city in February, might be heading south for the winter. Some analysts wonder if it might also be on course to go out of business.

While the 774-seat, five-story-tall vessel "adds something to the excitement of the city and the area as an entertainment venue," operator Bay Ferries Ltd. will need to employ "very creative" marketing "to even get to the break-even point," said Eugene Fram, a marketing professor at Rochester Institute of Technology.

Bay Ferries had planned to halt service on Dec. 31 but decided to pull the plug nearly three weeks early because of a steady slide in ridership over the last two months. Fewer than 100 passengers have boarded the ferry on recent sailings, including the final crossing to Toronto on Monday morning.

Next year's season will be shortened to a seven-month span from March 31 to Oct. 31 that more closely resembles the schedules followed by other ferries on the Great Lakes.

Bay Ferries, a Canadian company, also manages a similar high-speed ferry that has hustled between Bar Harbor, Maine, and Yarmouth, Nova Scotia, since 1998 and links Fort Lauderdale, Fla., and Grand Bahama Island in the winter.

Bought for $32 million at auction, the ferry was relaunched June 30 after running for just 11 weeks in 2004.

"What they need to do is hit a number of very specific niche markets," said Fram, who thinks the ferry will probably need government backing from year to year. "Most of the other ferries that we know of have some governmental subsidies tied to them, so why should this be different?"

Startup expenses alone ate up $2 million this year, and operating losses through September exceeded $3 million, the city said, blaming the shortfall on lower-than-anticipated passenger loads. The city had an $8 million cushion set aside for projected deficits through 2007.

The relaunch did not provide enough time for many tour-group bookings, which could boost ridership in 2006, the city said in a report. The average number of passengers jumped by two-thirds from 239 in July to 402 in August.

The ship zooms across the lake in about two hours and 30 minutes. A car trip around the lake usually takes three to four hours -- and far longer when there are traffic tie-ups at the border.

The maiden run in spring 2004 was postponed for six weeks after the Australian-built ship sideswiped a pier in New York City near the end of a round-the-world voyage and underwent $1 million in engine repairs. It then sailed for just 80 days before operator Canadian American Transportation Systems shut down last September with $1.7 million in debt.

Rochester approves $11.5 million loan for high-speed ferry
21 December 2005

ROCHESTER, N.Y. (AP) - City leaders agreed to borrow an extra $11.5 million to bankroll the debt-laden high-speed ferry that shuttles between Rochester and Toronto.

The 55-mph car-and-passenger catamaran, which wrapped up its rocky second season on Dec. 12, has eaten up more than $10 million in startup and operating costs since being bought by the city in February.

The city had set aside an $8 million cushion but had to borrow an extra $2 million from ferry operator Bay Ferries Ltd. to keep afloat.

On Tuesday night, the City Council voted 7-2 to borrow $11.5 million more to keep the ferry in business next year. The season is being shortened to a seven-month span from March 31 to Oct. 31 that more closely resembles the schedules followed by other ferries on the Great Lakes.

Bought for $32 million at auction, the five-story-tall ferry was relaunched June 30 after running for just 11 weeks in 2004.

Bay Ferries, a Canadian company, had planned to halt service across Lake Ontario on Dec. 31 but pulled the plug nearly three weeks early because of a steady slide in ridership over the last two months. Fewer than 100 passengers had boarded the 774-seat ferry on sailings last month.

Eugene Fram, a marketing professor at Rochester Institute of Technology, thinks the ferry will probably need government backing from year to year. "Most of the other ferries that we know of have some governmental subsidies tied to them, so why should this be different?"

The city said this year's relaunch did not provide enough time for many tour-group bookings, which could boost ridership in 2006. The average number of passengers jumped by two-thirds from 239 in July to 402 in August.

The ship zooms across the lake in about two hours and 30 minutes. A car trip around the lake usually takes three to four hours -- and far longer when there are traffic tie-ups at the border.

The maiden run in spring 2004 was postponed for six weeks after the Australian-built ship sideswiped a pier in New York City near the end of a round-the-world voyage and underwent $1 million in engine repairs. It then sailed for just 80 days before operator Canadian American Transportation Systems shut down in September 2004 with $1.7 million in debt.

Rochester mayor refuses to back loan to keep fast ferry afloat
10 January 2006

ROCHESTER, N.Y. (AP) - The city's new mayor rejected an extra $11.5 million loan to keep a financially struggling high-speed ferry on Lake Ontario running Tuesday.

Instead, Mayor Robert Duffy said he will ask City Council to approve transferring $9.5 million in reserves to cover this year's expenses and immediately try to sell the 55-mph car-and-passenger catamaran that traveled between Rochester and Toronto.

"The city of Rochester will no longer be in the ferry business," said Duffy, who is two weeks into his term. "I'd rather take the hit right now and maybe gain some credibility ... as opposed to next year with an inflated debt, maybe even more uncertainty."

The ferry, which ended its second season Dec. 12 with low ridership, ate up more than $10 million in startup and operating costs since being bought by the city in February.

Duffy said an $11.5 million loan, backed by City Council last month, would not be enough to cover mounting expenses and debt to the Canadian operator with money left over to begin a new seven-month season on March 31.

Bought for $32 million at auction, the five-story-tall ferry was relaunched June 30 after running for just 11 weeks in 2004.

In its maiden run in 2004, the ferry sailed just 80 days before operator Canadian American Transportation Systems shut down with $1.7 million in debt.

Information from: Rochester Democrat and Chronicle, http://www.democratandchronicle.com

Shutdown of ferry could cost millions
Rochester pulls funding for Lake Ontario vessel
Simon Cheung
National Post, with files from Reuters
12 January 2006

The shutdown of the short-lived Rochester ferry will likely cost Toronto millions of dollars of lost revenue, the Toronto Port Authority said yesterday.

Ken Lundy, the authority's chief of operations, estimated 80,000 passengers entered Toronto from the ferry last season. If each spent $100-$150 in Toronto, the revenue would total $8-million to $10-million.

"These are new people. These are people who came because of that ferry," Mr. Lundy said.

"People argue 'Well, they would have driven around anyway, [but] I don't think that's the case. The people we had coming over were directly attracted to the ferry and wanting to come to Toronto."

The city of Rochester pulled funding for the ferry on Tuesday. The five-storey catamaran had stopped running for the season on Dec. 12 after being in service for only 10 months and losing $10-million. A previous private venture also failed.

Andrew Weir, spokesman for Tourism Toronto, said the ferry was a valuable marketing feature for the city.

"It's an advantage when you can offer the option of a ferry as an alternative to driving," he said. "Once they've made the decision to come here, we encouraged them to look at the ferry as an option."

Rochester Mayor Robert Duffy's office said in a statement that maintaining the ferry did not make business sense for Rochester, as about two-thirds of the ferry's passengers went to Toronto.

In the statement, Mr. Duffy announced his decision to turn down a Rochester City Council request for a US$11.5-million bond to keep the ferry operational.

"This shutdown will at least stop the hemorrhaging of tax dollars that continued operation of the ferry would have brought upon us," he said in the statement.

Toronto Mayor David Miller called the shutdown "a regrettable development."

Port authority president Lisa Raitt said in a statement was "unfortunate that the vessel suffered startup challenges in its first two seasons and was never able to realize its full potential."

She said that in its only season of operation it transported over 250,000 total passengers and 38,000 vehicles.

She added the port authority would pursue alternative tenants and uses for its waterfront terminal at Cherry Beach.

Mr. Weir said he hopes that a business case can be made to save the ferry service. "We think it adds to what we can sell when we're out there selling the city," he said. "Not every city can be [accessed] by ferry."

Mr. Lundy said Rochester did not do a good job promoting itself as a destination in Toronto.

He said some popular destinations for ferry users were the Keating Channel Pub near the terminal, the Rogers Centre -- especially for Yankee games -- and the Distillery District.

Rochester bought the ferry last year and relaunched service across Lake Ontario after the original operator shut it down after only a few months because of financial troubles and logistical disputes.

But marketing was patchy and the ferry service was not much faster than the long road route around the lake, in part because of the time needed to clear customs before boarding the ship. Passengers simply stayed away.

A spokeswoman for Mr. Duffy said the city was making arrangements to sell the ferry.

Rochester estimated the service would lose at least US$2.7-million in 2006 if it continued running, and issuing the new bond would have boosted city-backed debt for the ferry operations to $51.5-million. Wrapping up the operation would cost $9.5-million.

Rochester mayor wants investigation into ferry system renewed
2 August 2006

ROCHESTER, N.Y. (AP) - Rochester's mayor on Wednesday asked city, state and federal authorities to resume criminal investigations into the former operation of a fast ferry to Toronto.

Robert Duffy's request follows a state report last week that harshly criticized the previous mayor's oversight of the ferry project.

Duffy shut down the city-owned ferry when he took office this year.

The state audit said former mayor William Johnson Junior's administration failed to notice financial problems and private dealings by the company that ran the ferry in the summer of 2004.

The audit also said the city spent almost $1 million to support Canadian American Transportation Systems without giving the public details.

Duffy also said he wants the city Corporation Counsel Thomas Richards to find some way to break a 40-year ferry-terminal lease -- at $1 a year -- given to a company subsidiary.

Troubled high-speed ferry finally departs from port of Rochester, New York
22 December 2006

ROCHESTER, New York (AP) - A 55-mph (88.5-kph) car-and-passenger catamaran that darted back and forth between Rochester and Toronto -- but spent much of the last 2 1/2 years tied up in port -- left port late Thursday bound for a temporary stop in Nova Scotia.

After spending more than $10 million in startup and operating costs under municipal ownership, the city of Rochester announced in May it was selling the ferry for $29.8 million to Euroferries Ltd.

Eight months later, Euroferries still has not closed on the deal because it continues negotiations with its financier.

But the weather was right for the ferry's long-awaited departure from Lake Ontario and Mayor Robert Duffy ordered it to set sail.

"Everything is falling into place," said Duffy, who put the ferry up for sale when he took office in January.

The Australian-built vessel, which can load 774 passengers and 220 cars, was plagued by mechanical and marketing problems -- and endured an inauspicious debut.

Its maiden run in spring 2004 was postponed for six weeks after it sideswiped a pier in New York City near the end of a round-the-world voyage to Rochester. The ship then sailed for just 80 days before private operator Canadian American Transportation Systems shut down in September 2004 with $1.7 million in debt.

The city bought the ship at auction in February 2005 for $32 million but quickly spent $8 million set aside to cover operating costs and even had to borrow an extra $2.5 million from operator Bay Ferries Ltd. While the average number of daily passengers jumped to 402 in August 2005, city officials said the relaunch in 2005 did not allow enough time for many tour-group bookings.

Only three other "fast ferries" -- defined as vessels that carry 50 or more passengers and their vehicles and pierce the waves at speeds above 29 mph ( 47 kph) -- operate in the United States.

Rochester ends fast ferry lease
Fri Dec 18 2009
Toronto Star

Members of Rochester's ferry board voted Thursday to finally end the lease of the ill-fated fast ferry service between the New York city and Toronto.

According to the Democrat & Chronicle, the ferry board agreed to pay the Toronto Port Authority a settlement of $90,000 (U.S.) to end the lease. The board also voted to dissolve the Rochester Ferry Co.

"I would ask if there is any other business coming from this ferry board," Benjamin Douglas, the former council member who served as board president, said at the meeting. "But we don't exist anymore."

The final step in the ferry saga will come when Rochester city council approves the dissolution of the ferry board.

The lease was originally a $250,000-a-year deal that was supposed to run until 2019.

In a media release, Alan Paul, vice-president and CFO of the Toronto Port Authority, called the ferry a "visionary concept, and as such contained some significant risks."

He added, "The city of Rochester and the RFC were great partners with the TPA, and we only regret that this specific cross-lake business model was not sustainable."

But the much-heralded project seemed to struggle from the start.

The ferry, known as the Spirit of Ontario or the Breeze, ran for only 11 weeks in 2004, before financial problems halted service.

Rochester then bought the ferry for $40 million and relaunched service in 2005. Rochester called the ferry The Cat, but permanently docked the project after losing million of dollars.

During the 2005 run the ferry smacked into a dock in Toronto, breaking three large windows and rattling the nerves of about 700 passengers inside.

In the roughly six months it was operational, the ferry carried 250,000 passengers and 38,000 vehicles.

In 2006, the ferry was sold for $29.8 million to Euroferries Ltd., a British firm who at the time of purchase intended to operate it between Dover, England, and Boulogne, France. But, the Democrat & Chronicle reported, that first deal failed and the ferry was sold to German company Forde Reederei Seetouristik Gmbh & Co. KG for about $28 million.

Just because the boat was gone didn't mean the parties involved were ready to give up on the project.

In 2008, the Port Authority and Rochester tried to revive service, calling for firms interested in operating a ferry across the lake to come forward.

Two stepped up, but officials felt neither had the operational or business experience to get a green light.

The $8 million terminal built in Toronto for the fast ferry did get some use – as a set for the CBC TV show The Border.