Post by ferryfast admin on Jan 25, 2006 1:07:48 GMT -5
Federal law makes NYC unlikely home for fast ferry
(WROC-TV)
1/24/2006 6:00 PM
(Ty Chandler)
Speculation that the fast ferry could find a home in the Big Apple has grown this week. However, those eager to keep the ship in New York failed to consider a very crucial federal law.
It is called the Jones Act, and it is the law of the land, or in the case the seas. A ship must be U.S. built, U.S. owned and registered in the U.S. to operate between two U.S. ports. The Australian built Spirit of Ontario got around that by servicing an international route, Rochester to Toronto. But, New York City isn't near any international ports, making it nearly impossible for Spirit of Ontario to operate there.
"I really don't know what the law is in respect to maritime applications," said City Attorney Thomas Richards. "But we're not far enough along to worry about that and to be fair to New York City, they haven't really expressed whether this boat would work for them," he said.
Tuesday the Rochester Ferry Board met for the second time this year. The board approved the $9.4 million loan agreement with the city, which clears the way for the sale of the boat. The board also decided to keep five people in their payroll to handle administrative duties and maintain the boat until it's sold. Mayor Bob Duffy said his office has had several inquiries about the ship, including a call from a private operator in Toronto.
The sale of the boat will bring little relief to the city's debt, which is hovering around $50 million. The $9.4 million borrowed from Rochester's reserves must be paid back immediately after the sale of the ship. Maritime experts estimate the ferry's worth $10 to 20 million.
"Clearly we're in a position to pay debt services for many years to come," said Mayor Bob Duffy.
City Attorney Tom Richards is still working to get out of contracts with Bay Ferries and the Port of Toronto. Richards didn't rule out the possibility of more debt accruing due to those contracts.
(WROC-TV)
1/24/2006 6:00 PM
(Ty Chandler)
Speculation that the fast ferry could find a home in the Big Apple has grown this week. However, those eager to keep the ship in New York failed to consider a very crucial federal law.
It is called the Jones Act, and it is the law of the land, or in the case the seas. A ship must be U.S. built, U.S. owned and registered in the U.S. to operate between two U.S. ports. The Australian built Spirit of Ontario got around that by servicing an international route, Rochester to Toronto. But, New York City isn't near any international ports, making it nearly impossible for Spirit of Ontario to operate there.
"I really don't know what the law is in respect to maritime applications," said City Attorney Thomas Richards. "But we're not far enough along to worry about that and to be fair to New York City, they haven't really expressed whether this boat would work for them," he said.
Tuesday the Rochester Ferry Board met for the second time this year. The board approved the $9.4 million loan agreement with the city, which clears the way for the sale of the boat. The board also decided to keep five people in their payroll to handle administrative duties and maintain the boat until it's sold. Mayor Bob Duffy said his office has had several inquiries about the ship, including a call from a private operator in Toronto.
The sale of the boat will bring little relief to the city's debt, which is hovering around $50 million. The $9.4 million borrowed from Rochester's reserves must be paid back immediately after the sale of the ship. Maritime experts estimate the ferry's worth $10 to 20 million.
"Clearly we're in a position to pay debt services for many years to come," said Mayor Bob Duffy.
City Attorney Tom Richards is still working to get out of contracts with Bay Ferries and the Port of Toronto. Richards didn't rule out the possibility of more debt accruing due to those contracts.