Fate of Ontario Superferry: Lessons for Hawai`i?

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(Posted 11/2/07)

In all the recent coverage of the Hawai`i Superferry, little has been said about a troubled sister ship that briefly plied the waters of Lake Ontario. Here are some of the facts about its short-lived service between Toronto and Rochester:

March 2004: The double-hulled ferry, built in Australia at a cost of some $42 million, stops in Hawai`i on its way to the eastern seaboard of the United States. The port calls, sponsored by the Hawai`i Superferry backers, are intended to give Hawai`i residents a hint of what is to come. The Spirit of Ontario is slightly smaller than the two vessels being built for the Hawai`i trade, but still holds nearly 800 passengers and more than 200 cars.

April 2004: The vessel is damaged as it docks in New York.

June 2004: With the city of Rochester and the state of New York having together invested more than $30 million in upgrading the city’s port facilities to accommodate the new ferry, the Spirit of Ontario begins service, with a one-way fare costing about $30. Almost immediately, ferry owners begin to lobby for laws to allow on-board gambling, citing a need to boost revenues. Their efforts failed. Soon after service began, residents along the southern coast of Lake Ontario began complaining of high waves along the shore generated by the ferry’s wake.

September 2004: Canadian-American Transportation Services (CATS), the company that owned the ferry, suspends service on September 4, citing losses of more than $2 million in the 80 days it had been operational. By the end of the month, the vessel was impounded by a federal judge.

February 2005: The city of Rochester purchases the vessel for $32 million at a bankruptcy auction.

March-May 2005:The vessel has to undergo repairs before service could resume. While at drydock in Toronto, it fell of the blocks, sustaining minor damage. Its prototype engines, deemed “problematic” in a pre-purchase inspection, were no longer under warranty. The city had to purchase a new warranty for $1.5 million and a two-year maintenance agreement for another $600,000 from the German manufacturer.

June 30, 2005: Service between Rochester and Ontario resumes.

October 2005: A special promotional trip was cancelled after 12-foot-high waves on Lake Ontario affected fuel lines and caused the ship not to have full power. Midway to Toronto, the vessel turned back and headed for port in Rochester.

January 2006: After 10 months and $10 million in operating losses, the mayor of Rochester suspends service.

April 2006: Rochester sells the vessel for $30 million to a German company that operates a ferry service in the Strait of Gibraltar. The Tanger Jet II makes the run between Tangier and Tarifa in 35 minutes. A round-trip ticket is about 56 euros ($83).

September 2007: A federal investigation into the use of public funds to support the ferry concludes with no charges filed. A state investigation continues. A private lawsuit has been filed by a businessman, claiming that taxpayers should not have to repay a $29 million loan used to support ferry operations since, he alleges, aspects of the ferry arrangement were unlawful.

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