The Virgin Islands Department of Public Works is issuing a clarification regarding statements made during the recent ferry rate hearing concerning the operation of the Spirit of 1733, as well as references to other government-owned vessels, Cruz Bay I and Red Hook I.
The Spirit of 1733 was acquired using federal grant funding based on ridership demand and service commitments for the Red Hook to Cruz Bay route (Route 32M). As such, its use is restricted to that designated service area in accordance with federal requirements.
While a request was made to operate the vessel on the Charlotte Amalie route on a limited basis to access lower fuel costs, the Department cannot authorize passenger operations outside of the federally supported route. The Department has advised the operator that the vessel may transit to Charlotte Amalie for refueling purposes only. No passengers may be transported, and no revenue service may be conducted during such movements.
The Department also clarifies statements made regarding other government-owned vessels. In August 2025, authorization was granted for the use of Cruz Bay I and Red Hook I by Transportation Services and Varlack Ventures, respectively, to operate along Route 30M between Cruz Bay and Charlotte Amalie.
Additionally, the Department is not aware of any conditions that would support claims of significant or prolonged downtime for these vessels. Operating agreements require that the Department be notified of operational challenges. While routine maintenance and repair activities do occur, the Department does not concur with characterizations of excessive downtime.
The Department supports efforts to mitigate rising operational costs and is in favor of reasonable measures, including the consideration of a fuel surcharge applied to non-resident passengers as a means of offsetting increased fuel expenses.
Commissioner Derek Gabriel stated, “We recognize the real cost pressures facing our ferry operators and support practical solutions that help sustain service, including the implementation of a reasonable fuel surcharge for non-resident passengers. At the same time, we have a responsibility to ensure that federally funded assets are operated strictly within the conditions under which they were awarded.”
The Department will continue to engage with the Federal Transit Administration and Federal Highway Administration to explore other compliant operational alternatives.
