June 25, 2001 – As the owners of the fast ferry that would provide transportation between St. Croix and St. Thomas wait to decide if they are going to offer part-time service starting next December, The Port Authority is investigating ways to fund year-round service.
Boston Harbor Cruises operations director Kevin Matthews told the Source recently that the company’s return to the territory for a five-month season starting in December isn’t "cast in stone." While the Port Authority board of directors recently lowered port fees for any inter-island ferry service -– mainly at the behest of Boston Harbor Cruises -– Matthews said leasing issues remain to be authorized by the board.
"The proposal the Port Authority put together [see previous story titled Fast ferry break on port head tax approved] does make it very enticing," Matthews said. He noted that the Port Authority board will be meeting in the next few weeks on the lease agreements. "We plan on actively pursuing coming back to the Virgin Islands, but it’s not cast in stone yet."
Meanwhile, the Port Authority is set to hire a consultant to conduct a study on the overall viability of inter-island ferries and ways to fund such services. Port Authority planner Darlan Brin said that while the agency doesn’t have plans to get into the ferry business, it is open to the idea of securing federal funding and then contracting with a company to operate ferry service.
However, a major source of federal transportation funding, the Transportation Equity Act for the 21st Century (TEA-21), doesn’t authorize money specifically for ferries or ferry terminals in the U.S. possessions.
"The V.I. could use its federal (TEA-21) funds for ferries and terminals, but that would reduce the allotment for highways," Brin said.
The U.S. Maritime Administration is also a source of funding, Brin said, but only for loan guarantees, not grants. Certain stipulations would apply, including that vessels would have to be built in the United States.
In most cases, a public entity must provide the vessels and terminal facilities. For the Virgin Islands, the Port Authority would contract the service to an independent operator.
"In some places, ferry services are just like a bus. It’s considered mass transit," Brin said. "We are going to be embarking on a feasibility study to get a consultant to determine what size vessel, the speed, and if there is a market.
"The matter is still on the front burner," he said.
The idea of a year-round ferry service also remains a priority for the owners of Seaborne Airlines, company president Maurice Kurg said. Seaborne sees Boston Harbor Cruises’ possible foray into the territory as a threatening competitor. Considering Seaborne’s experience moving large numbers of passengers and its harbor-side infrastructure, Kurg said, there is no reason it can’t get into the ferry business.
"We are taking a hard look at it," he said. "It’s definitely a competition issue with us."
Meanwhile, representatives of another fast-ferry company, St. Croix-based Crucian Express, told Port Authority board members a week ago of plans to purchase a Norwegian vessel capable of a speed of 40 knots, the same as Boston Harbor’s $10 million Salacia, with seating for 271.
Crucian Express wants to run this ferry year 'round, according to Jolene Wilson-Glah, company legal counsel. She said Crucian Express plans a September start-up with three round-trips a day. Start-up costs are estimated at $2 million, she said, to be raised through the sale of common stock.
Matthews said that as far as Boston Harbor Cruises is concerned, if the Port Authority board approves the leases sought by the company, it will be back in December.
"Based upon our past experience with the Port Authority, it has been very ferry friendly," he said.
