New York City. Europe. British Columbia. BC Ferries Crow

1
The Organization Funding of Ferry Service in
other Jurisdictions

• Len Roueche

2
Introduction

• British Columbia
• New York City
• Europe

3
British Columbia

• BC Ferries Crown Corporation
• PacifiCats
• BC Ferry Services Inc.

4
(No Transcript)
5
PacifiCats

• Ageing Fleet
• Shipbuilding Industry
• Government Policy vs Management Priorities

6
PacifiCats Legacy

• 500 million debt
• 8 years with no new ships
• 40 ferries average age 30 years
• One new ship per year

7
The Solution

• New Management
• New Government
• Sell the PacifiCats
• Retire the Debt
• Create a new Company

8
BC Ferry Services Inc.

• Problem
• Direct Govt involvement
• Solution
• Independent company
• Govt as shareholder
• Only 2 of 9 Govt appointees on the Board
• BC Ferry Commissioner the Regulator

9
Coastal Services Contract

• 60 year monopoly on 25 routes
• Govt specifies service fares every 4 years
• Annual subsidy - 106 million

10
The Results

• Ordering new ships in Germany
• Strict rules for Govt involvement
• Private sector contracts competition

11
New York City

• The main ferry operators

12
Staten Island Ferry
13
SeaStreak
14
New York Water Taxi
15
NY Waterway
16

17

18
Post 9/11

• Cross-Hudson PATH line closed
• NY Waterway increases service with Federal
  assistance
• 16 new vessels
• 20 million debt guaranteed by Federal Govt
• PATH re-opens in 2004
• NY Waterway traffic plummets bankruptcy ?

19
Rescue Proposals

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

20
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

21
Europe

• Govt 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?

22
Conclusion

• No Silver Bullets
• Broadening your horizons