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Go to WHAM TV 13 for Video
Jane Flasch (Rochester, NY) 11/04/05 -To help ease a multi-million dollar loss, Mayor Bill Johnson says the fast ferry needs money for advertising.
The ferry lost $4.2 million in its first three months of operation under Bay Ferries Ltd., dissolving half of the reserve fund that was supposed to last for up to four years.
The Flagging Issue
Because it was registered in the Bahamas, the ferry gets a bill for $1,100 in piloting fees each time it makes a journey across Lake Ontario. If the ferry sailed flying a US flag, those fees would be eliminated.
However, before the Cat can change its flag, the entire crew must be made up of US citizens. That crew has been hired, but the vessel remains under the control of Captain Hans Heinrich, a Danish sea captain and consultant, who is training the crew.
A member of the ferry corporation said the crew meets all other requirements for getting a US flag. However, more training was called for after one of the US crew members piloted the Cat into the side of the dock in Toronto.
The contract with Heinrich has been extended.
More Passengers Needed
Even with this cost, Ferry Board President Ben Douglas said expenses are in line with projections. He said the problem is on the revenue side--there aren't enough passengers.
One possible source of cash could come from on-board advertising.
Rochester’s original plan also called for the ferry to generate a million dollars a year. Given the number of riders so far, that could be a problem.
Risk management expert and RIT professor Robert Barbato said, "That [plan] was based on a thousand crossings a year and a certain number of riders on each crossing. Now that both have gone down, it’s going to be harder to sell advertising--especially a million dollars worth. I don't think they're going to come anywhere near a million dollars in advertising revenue a year."
Barbato said the ferry can't run without a subsidy.
To get an influx of cash, the city of Rochester could share ownership with the county, state, or even Canada. Some think there should be on-board gambling. However, those options are not on the table at the present time.
Johnson said the ferry can pay for itself eventually, but for now he's seeking money from New York state and from the Canadian government to help promote the service.
Tour and bus companies typically plan 12 to 18 months ahead, so the time to advertise for next year's peak season is almost gone.
A new marketing plan is expected to be released later in November.
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