The Organization & Funding of Ferry Service in other Jurisdictions Len Roueche

Introduction British Columbia New York City Europe

British Columbia –BC Ferries – Crown Corporation –PacifiCats –BC Ferry Services Inc.

PacifiCats Ageing Fleet Shipbuilding Industry Government Policy vs Management Priorities

PacifiCats’ Legacy $500 million debt 8 years with no new ships 40 ferries – average age 30 years One new ship per year

The “Solution” New Management New Government Sell the PacifiCats Retire the Debt Create a new Company

BC Ferry Services Inc. Problem: –Direct Gov’t involvement Solution: –Independent company –Gov’t as shareholder –Only 2 of 9 Gov’t appointees on the Board –BC Ferry Commissioner – the Regulator

Coastal Services Contract 60 year “monopoly” on 25 routes Gov’t specifies service & fares every 4 years Annual subsidy - $106 million

The Results Ordering new ships in Germany Strict rules for Gov’t involvement Private sector contracts – “competition”

New York City The main ferry operators

Staten Island Ferry

SeaStrea k

New York Water Taxi

NY Waterway

Post 9/11 Cross-Hudson PATH line closed NY Waterway increases service with Federal assistance –16 new vessels –$20 million debt guaranteed by Federal Gov’t PATH re-opens in 2004 NY Waterway traffic plummets – bankruptcy ?

Rescue Proposals NJ Hudson County - $38 m package Other private operators NYWW suggests takeover by Port Authority

The Solution BillyBey Ferry Company (William Wachtel) acquired half of NYWW for $20m Monthly docking fees: $50,000 down to $10,000 BillyBey Ferry contracts NYWW to run the service William Watchel: redeveloping Pier A at Battery Park Other operators – no public tender

Europe Gov’t owned ferry operations – a thing of the past Emphasis on competition policy and public tendering 5-10 year contracts for subsidized services A solution for North America?

Conclusion No Silver Bullets Broadening your horizons