Nov. 8, 2007 — Transportation Services and Varlack Ventures, which operate ferry service between St. Thomas and St. John, plan to "significantly curtail" operations within days if the government doesn't come up with funding.
St. Thomas attorney Claudette Ferron, who represents the two St. John-based companies, said there will be no funds to cover operations "shortly thereafter," and the companies will be forced to shut down the service until the local government provides funding, according to a press release issued late Thursday afternoon.
The companies will no longer use any "private, family or personal funds, assets or collateral" to fund franchised ferry boat operations, she said.
Ferron, Transportation Services Manager Kenrick Augustus and Varlack Ventures Vice President Delrise Varlack could not be reached for comment after the close of business hours Thursday.
Curtailing or eliminating the ferry service would cripple the island's economy, said St. John resident Robert O'Connor Jr., who owns a car-rental business on St. John.
"St. John is in the service industry," he said. "People have to get in for businesses to survive."
Problems with the ferry service will "almost instantaneously" get out on Internet chat rooms, said St. John resident Mark Shekleton, who owns Seaview Vacation Homes villa-management company.
"It will have a very detrimental effect on tourism," he said.
St. John resident Steve Conley, whose two children attend Antilles School on St. Thomas, said he didn't know what he'd do if there was no ferry service.
"I just can't fathom how they could cut the service," he said.
O'Connor is also the chairman of the V.I. Port Authority board. While the authority has no control over the ferry companies, the agency would lose revenue if the boats are not using the docks, he said. However, O'Connor said he was more concerned about the impact on St. John if it had no ferry service.
Ferron claims that under federal law the government is responsible for funding the entire operations of the franchised ferry services using local and federal funds. Past administrations have "improperly redirected" tens of millions of dollars provided by the federal government specifically for the St. Thomas-St. John ferry service to other public-works projects that have nothing to do with the ferry service, she said.
It costs the ferry companies $6.18 per passenger for each trip, but fares cover only $4.13 per trip, Ferron said. Most passengers do not pay the regular fare of $5, but instead get discounts in the form of commuter, bulk rate, student and senior fares, she said. The rates set by the Public Services Commission do not provide a fair and reasonable return on the companies' investment, she said.
"The companies have lost tens of millions of dollars," Ferron wrote.
Companies are required to pay all government taxes and fees, but receive no tax breaks, she said. The companies have no obligation, legally or otherwise, to pay for "public marine service," she said, and it's contrary to the U.S. Constitution to force them to do so.
"Unfortunately, both the people of the Virgin Islands and the government itself have become accustomed to, and addicted to, the companies subsidizing and paying for public marine transportation," Ferron wrote.
The ferry companies have been in business for more than 50 years, she said.
Back Talk Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.
