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Charlotte Amalie
Friday, March 29, 2024
HomeNewsArchivesPSC Halves Cruz Bay to Downtown St.Thomas Ferry Runs

PSC Halves Cruz Bay to Downtown St.Thomas Ferry Runs

Public Services Commission members voted Wednesday to temporarily cut in half the number of ferry runs from Cruz Bay to downtown St. Thomas, but shot down a request to eliminate the runs entirely during the summer months.
Franchise ferry company representatives have made it clear that the downtown runs aren’t profitable, and only really pick up a handful of passengers. For the companies to break even there would need to be 24 passengers per run, which only happens from January through June, according to Malcolm Kirwan, a consultant to the ferry companies.
Ridership drops from July to October, only bringing in about two to eight passengers per run.
For each leg of a roundtrip, the ferries incur an average direct cost of $197 — $94 for fuel and $103 to pay for a captain, three crew members and a cashier, Kirwan explained Wednesday. According to data from 2008, the downtown route suffered a $450,000 operating loss that had to be subsidized by revenues brought in by the Red Hook to Cruz Bay runs.
The companies argued that cutting out the summer schedule would help improve their financial picture but in order for that to happen, commissions members said, the statutes setting up the franchises would have to be amended by the Legislature.
Instead, they voted to revise the schedule, which will become effective in 10 days and run until Nov. 1.
The revised schedule is as follows:
Leaving Cruz Bay – 9:15 a.m., 11:15 a.m. and 3:45 p.m.
Returning – 11 a.m., 1 p.m. and 5:30 p.m.
PSC chairman Joseph Boschulte also proposed the ferry companies really begin look at whether it would be more cost effective to cut the downtown runs out altogether.
"If you’re going to have a franchise service that by law allows you to have a six-to-eight percent rate of return, then you should be getting a six-to-eight percent rate of return," he said. "When is it time to pull the plug?"
In other news, commission members also approved extending its stay on ferry rate increases until Oct. 15. Attorney Jennifer Jones, hearing examiner in the ongoing rate investigation, said the extra time would allow all parties to really "hash out the issues" and allow for public hearings to be held on Sept. 2 and 3.
At the beginning of April, commission members voted to increase the rates — a decision that was challenged a few weeks later by the Unity Day Group, whose request for reconsideration has stalled the implementation of the increases and prompted the PSC to revisit the issue.
"Right now we’re requesting that stay be extended until a certain time to allow for the reconsideration to be completed," Jones said during Wednesday’s meeting. She added that a public hearing is needed so that all the arguments can be presented, errors made on the record can be corrected and all parties can be given a "fair opportunity to respond."
According to the new schedule, Jones’ recommendations would be in by Oct. 2, pushing the PSC’s decision back until the middle of the month.
While Unity Day Group members said they favor the extension, attorney Claudette Ferron – representing both Varlack Ventures and Transportation Services – said continuing to delay the issue would exacerbate the companies’ strained financial position.
Commission members present during Wednesday’s meeting were Boschulte, Donald "Ducks" Cole, Verne C. David, M. Thomas Jackson and ex-officio member Sen. Patrick Simeon Sprauve.
Members Sirri Hamad and Elsie V. Thomas-Trotman were absent.

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