Page Thirty-Five  

08 NOVEMBER 2005

Mark Hare.  The D&C's answer to Pablum journalism for the masses.

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Mark Hare has been a local columnist for the Democrat and Chronicle since 1997. Before that, he was editorial page editor for the afternoon Times-Union, and before that deputy editorial page editor for the Democrat and Chronicle. He began his career there as a reporter in 1984. He is a native of Owego, Tioga County. He is a graduate of St. John Fisher College and the State University at Brockport. He was a high school teacher for six years before switching to journalism.

Can the fast ferry find a market before it's too late? (November 3, 2005) — It is not too late to grow a market for the fast ferry service. But, time is short. Very short. In just two months of operation, the ferry has depleted more than half of the $8 million the city-owned service has set aside in reserve. That money was to guard against anticipated operating losses and unanticipated costs for two to three years. Obviously, if the ferry service continues to eat its reserves at that pace, the Rochester Ferry Company LLC (the public entity that owns the ship) will have to find money within months — raising the question of some direct taxpayer subsidy. So far, the ferry has operated with a line of credit that is to be repaid from income derived from the service. Last week, the ferry company released a generally optimistic progress report, despite the losses. It is certainly true that the ferry had its share of bad luck — starting with some expensive engine work that delayed the planned June 17 startup. But it's also true that the ferry, with reduced service in December and a winter shutdown in January and February, will have debt service and other fixed costs, but little or no money coming in. "We're sifting through the data and we expect to submit a budget for 2006 to the City Council in December," says Ben Douglas, a council member and president of the ferry company. "We have to have a full season of service in place to prove what we can do." I'm still nervous. I have supported the fast ferry since it was half-wish, half-vague idea. I remain confident that the service can generate a lot of traffic through Rochester and help redefine Rochester as a port city — a crossroads for upstate New York. What's distressing is that everyone connected with the ferry has known from day one that success depends on an aggressive marketing effort aimed at the millions of travelers going between Toronto and western New York. That means selling the ferry to people in Ontario, the Southern Tier, the New York City metropolitan area, Pennsylvania, perhaps parts of New England — people who cross the border and might enjoy the ship as an alternative to a longer drive. The ferry is not a necessity; it can only be sold as fun, as a way to kick back and leave the driving to someone else.  (Oh, I get it, Mark.  Like Mom, Dad and the kids hiring a limousine for a weekend trip up to and back from Toronto?) Bay Ferries, the company that runs the service, has certainly done some advertising, but its marketing efforts have been slowed by service delays that made it impossible to book tour groups well in advance. But the fact is, reaching out to the target demographic has been slow and ineffective. And time is running out. The ferry company has enlisted Normal Communications to assist in the marketing. That's a good thing. A successful campaign must reach out to travel agents, tour booking companies, visitors agencies. It will partner with media groups, offering special ticket deals on television and newspaper Web sites, for example. It will create a pricing structure that better reflects the market realities — cheaper seats during the week, perhaps, and more expensive seats on weekends. It will find ways to partner with sports teams, theaters and hotels in Toronto. It must be creative and exhaustive. Or the ferry service will find itself looking for more subsidies without evidence that it can and will live up to its promise. The ferry is a huge opportunity for Rochester, a window to a new and different future. But it will only be as successful as its marketing plan allows. It's not time to panic, but it's starting to look as if the ferry is down to its last chance.

"A successful campaign must reach out to travel agents, tour booking companies, visitors agencies. It will partner with media groups, offering special ticket deals on television and newspaper Web sites, for example."

Hey.  What did I just get through saying yesterday, Mark?  Weren't you listening?

"Tourism is dependent on tourists... people.   Not advisory boards, corporate 'experts' or community initiatives.  It is the public's desires, motivation and dollars which drive tourism, not a bunch of suits sitting around tables noshing on Starbucks and fruit danish."

That most definitely includes marketing and advertising hacks.

Let's grind on the advertising world for a bit.  The purveyors of consumerism and the pimps of the stretched truth, marketers are like cult leaders for the masses.  It's weird; nodding their heads as they ask if the public if they want to buy some hopelessly redundant and expensive trinket, the advertising world are masters of assumption and generalizations.  Demographics are their tools and even though the 'average composite' of what constitutes the typical consumer is rarely 'average' or 'typical' they ignore the reality and push on.

I look at it this way; are the ads I see being targeted anywhere close to me or my lifestyle?  Now granted, my demographic is so tiny it's completely ignored... the ad folks are going after the big markets... not my little slice of society.  That's fine.  I don't feel shunned if my vehicle doesn't have 15 molded plastic indentations called cupholders as 99% of the time, I'm the only passenger.  Frankly, I don't even use the two in my car as it is.

(Mayor Bill is speaking live on WXXI about ferry marketing right now.  He's not making much sense either.)

I ignore advertising.  No, really I do.  It's all spam to me regardless if it's on the tube, the radio, printed media, the internet, billboard or milk carton.  It's nothing less than a blatant grab for money... you, know... like a pimp telling a hesitant customer, "You need this".

That's what ferry advertising is about.  Telling people they either need or want to take the ferry when all the time the public is largely saying, "No, I neither need or want to take the ferry".

"Yes, you do".  "No, I don't".  "Yes, you do".  "No, I don't".  "Yes, you do".  "Pound sand, Jack".

"The ferry is not a necessity; it can only be sold as fun, as a way to kick back and leave the driving to someone else. "

This is elitist and obscene.  It's tantamount to urging people to take a private jet to Spago in Beverly Hills for dinner.  The moneyed crowd simply assumes some middle-class newspaper columnist in a backwater burg in Upstate New York can afford to hop on the Lear jet to the West Coast for a night of 'fun' over one of Wolfgang's signature pizzas.  After all, THEY can afford it... you mean people like Mr. Hare CAN'T??  Well, why not?

Now, of course the ferry fares are more within the affordability of more people than that of a private jet, but it's the assumption and arrogance which is pretty appalling.  Mark Hare took the wife and kids on a ferry ride, so he should be well aware of the entire cost associated with the 'fun' of whipping up to Toronto.  Tack on an extra 18% of that cost and maybe the 'fun' and 'excitement' starts to lose its lustre.

It's called 'currency exchange', Mark.  I know it doesn't mean anything to you... you get a discount on everything you pay money for on the Canadian side... but that not the way it works for Canadians spending THEIR money on the U.S. side.  American-centric mentality is showing... and as usual, it's just plain offensive.

Marketing campaigns are needed, but there shouldn't be stock placed in them.  People know about the ferry and aren't going to be swayed all that much by the marketing.

"But it will only be as successful as its marketing plan allows."

There you go again.  It will only be as successful as the PUBLIC allows.  Marketing dollars don't boost the ferry revenue; the PUBLIC'S dollars do.  It's not the will of the marketers which will save the ferry; it's going to be the will of the PUBLIC.  Advertising would help boost numbers marginally, however, considering the enormous gap between the actual passenger numbers and the number needed to break even, all the creative marketing in the world isn't going to make any difference.  Crash and burn.

10 NOVEMBER 2005

Begging the question "Why?"

Wednesday   November 09, 2005

Outgoing Mayor Supports Ferry   by Molly Cort Published Nov 08, 2005   Outgoing Rochester Mayor William A. Johnson stands by his belief that the fast ferry is good business for Rochester. “I think it’s good for this community," Johnson told R News on Election Night. "All we have to do is to insure that the ferry will have a full year of operation on a full season of ten months.” Johnson feels that Rochester has to market the ferry right and get the money out of the state of New York. He intends to work with the incoming mayor to secure funding before he leaves office. “We need to get those kind of funds committed so that this boat can be properly marketed… and find the kind of customers who are out there to ride it,” he said. Johnson stated, “there is still a question of whether or not we need to infuse public funds through some kind of subsidy… and the community has to have an honest discussion about this.”  (Why start now?) He would like to see the community move forward and establish the viability of this venture. City of Rochester

Why are ferry supporters so fixated with the marketing angle?

Why is Mayor Bill so convinced that the ferry business needs to "find the kind of customers who are out there to ride it"?

Blindly turning an eye to the real issue of why the general public isn't taking the ferry, ferry supporters are seemingly in abject denial of the root cause of why passengers aren't packing the boat in the numbers needed to sustain the business.  It's as if they can't... or won't... accept that people aren't all that interested in their pet project or community.

"All we have to do is to insure that the ferry will have a full year of operation on a full season of ten months.”

No, Bill.  Propping up the ferry for a full season isn't the way to ensure long term economic viability.  Giving the public a reason to WANT to take the ferry IS.  Right now, Canadians are taking a major yawn at the ferry premise and did so when CATS owned the boat... fundamentally to the market, the only thing that's changed since then is the decal on the side of the boat.  The service is the same, so is the route and the fares haven't changed all that much either.  To the public, nothing's changed and marketing, as it were, is an expensive fanfare with trumpets proclaiming the Big News that... "The Sky is Blue".

Earth-shattering revelation, there.  It's as if the ferry supporters are convinced nobody knows about the service and all that's needed to make the thing profitable is to bombard the public with advertising.  It's not that people don't know.  It's just that people don't care.

The public not caring or being interested in the pet project is a crushing blow to the people who're excited and thrilled about it.  Unable or unwilling to accept the hard truth, these plucky supporters push on anyway and make up excuses for the dismal showing as they go along.  At one point, it was 'bad luck'.  At another, it was the bureaucratic red tape of flagging and customs.  Then it was Toronto's fault for dragging its heels.  Then the high cost of fuel.  Then the residual ill-will left behind by CATS.  Why look for excuses when the only important thing to do is to look for the real reasons?

Look, I don't care if the city of Rochester takes out full page ads in the Globe and Mail and USA Today; all that would accomplish is to inform more people of the existence of the Toronto-Rochester ferry.  Certainly, that would have the effect of boosting sales -- maybe even a streak of sell outs -- but for how long?

Marketing ain't cheap either and the additional money that's spent on marketing only means that there's even MORE pressure to get MORE paying passengers on board to cover that additional cost.  It's another bill that winds up on the desk of the ferry accountant to pay from the dwindling reserve.  Nobody can predict the future of course, but as an example: if for every marketing dollar spent it yields 80 cents in revenue, that's still losing money.  $100,000 in marketing costs yielding $80,000 in revenue leaves $20,000 which is gone.  A negative gain.

Why?  Why is marketing going to work when all else has failed?  That's a question I'd pose to ferry supporters.

Not that they're listening.  Last night, a simple proposition on the ballots of the city voters would have settled the question fairly efficiently:

Proposition Three: Should the City of Rochester continue to pursue a ferry business?

If the vote had been 'yes', the Ferry Board and supporters are off the hook.

If the vote had been 'no', then it would be criminal to keep sinking more public money into it.

Then there's the position that not even asking the question is fairly undemocratic as well.  The Great Unwashed aren't so much asked as they're ordered... which begs the question, "Who's REALLY in charge?"

Hmm.  An editorial cartoon in a blog from Toronto:

Damn... there's that annoying blunt honesty again.  "Go away, blunt honesty..."

As for the cartoon, that's not a very nice portrayal of the Pride of Rochester, is it?  A rather innovative use, perhaps.  A tongue-in-cheek suggestion, maybe.  But recommending the ferry be turned into a garbage scow is really ludicrous.

Who needs to move garbage THAT fast?  That's just plain silly.  The ferry could be used as a garbage scow at half the speed and save money.  Just a suggestion.

Here's a thought from Toronto about the prospect of commercial trucks unloading at the Cherry Street terminal:

Question: Did ANYBODY having ANYTHING to do with this ferry concept study ANYTHING other than how to turn a quick buck PRIOR to the first sailing?  Cherry Street doesn't simply become an access ramp to the Gardiner and the DVP.   For that matter, having commercial trucks rumbling through Rochester city neighbourhoods might not be such a hot idea either.... and the Lake Ontario State Parkway is closed to commercial traffic, making access to the expressway system a fairly circuitous route.

Damn... there are those pesky details again.  "Go away, pesky details..."

See?  The folks in Ohio know about the ferry!  Not exactly in a glowing light, but as they say, "Bad publicity is better than no publicity at all".  Sort of.  Well, maybe it's not a ringing endorsement...

"Despite all of the initial hoopla over the ferry becoming an economic engine for the city, the reality is a public money pit that requires roughly 1,230 passengers a day just to break even."

"Public money pit"??  That's not a very charitable sentiment.  As a matter of fact, it's a pretty valid skepticism.

Damn... there's more of that valid skepticism.  "Go away, valid skepticism..."

See?  No need for publicity in Philadelphia either:

Home / Travel / Travel Domestic / Northeast After 80-day run, high-speed ferry going nowhere — for now By BEN DOBBIN Associated Press   ROCHESTER, N.Y. (AP) — It was a one-season wonder: a deluxe catamaran that zipped across Lake Ontario at 55 miles an hour, connecting a Canadian metropolis with a midsize American city that has seen better days. Will there be a revival? For almost two months, the $42 million ferry has been docked at the Port of Rochester. The private operator, laden with debts of $1.7 million, abruptly suspended twice-a-day roundtrip crossings to Toronto on Sept. 8, and the Spirit of Ontario looks to be going nowhere fast. The prospect of losing such a unique attraction — only three other high-speed car ferries operate in the United States — unloosed varying degrees of cynicism, sadness, bewilderment and yearning in every corner of this faded industrial city of 220,000 people in western New York. For a mix of emotions, look no further than Stan and Karen Dernoga, who drove to the pier on a weekday afternoon in search of “some solitude.” The vast parking lot, jammed with traffic all summer, was dotted with a few dozen cars — patrons of a fledging gift shop, hamburger joint and ice-cream parlor inside the sparkling, $16 million port terminal. Stan Dernoga, 66, a retired engineering manager, doesn’t think the ferry, which boasted a ridership of 140,000 in 80 days of sailing, can be resurrected. “Most of this community was perked up, and now we’re all very disappointed,” he said. “If they couldn’t do it the first time out, what in the world is going to be the magic the second time out, especially with the winter coming?  (We're still waiting for the answer.) “There’s such a thing as ironing the bugs out, but this was just one big bug.” “I’m the dreamer of the family,” piped in his wife, once she was done chuckling. “In the beginning, I was very, very skeptical. Now I’m a believer. I’ve always believed that something good comes from something bad.” After a Murphy’s Law-like debut, Canadian American Transportation Systems decided “it just couldn’t dig itself out of this hole” without first halting service, straightening its finances and tackling a maze of cross-border regulatory hurdles, said its president, Cornel Martin. “Our goal is to get it up and running again as soon as possible,” Martin said. “We have always viewed this as a temporary suspension.” The 284-foot-long, five-story-tall vessel, which can load 774 passengers and 220 cars, could be gliding across the lake again within weeks if its main financial backers in Australia and Holland give the go-ahead, Martin said. New investors recently climbed on board and a revised business plan was being negotiated, Martin said. Even if a deal can be worked out quickly, however, it’s unclear whether the ferry would relaunch right away or stay in port until next spring. Civic boosters hope a year-round ferry service will open up a popular international gateway, prop up tourism on both sides, create 1,300-plus jobs and ease traffic tie-ups along the Golden Horseshoe, the densely populated region straddling Lake Ontario’s western shore.  (Create 1,300-plus jobs?  Is that for real?  If it is, that makes the lack of those jobs even more astonishing.) The 171-mile road trip to Toronto usually takes three to four hours, and far longer when there are backups at the border near Niagara Falls. The ship got there in two hours, 15 minutes. Built in Perth, Australia, it was supposed to be the first high-speed car ferry plying the Great Lakes, but its April 30 launch was scrubbed after it sideswiped a pier in New York City near the end of its round-the-world voyage to Rochester. Doubts were momentarily set aside when the patched-up ship, nicknamed The Breeze, was cheered on its arrival here by 2,000 onlookers. Then came word of a $1 million engine overhaul, and another delay. In the meantime, the 40-mph Lake Express car ferry was launched June 1 on Lake Michigan, cutting in half a five-hour road trip between Milwaukee and Muskegon, Mich. The Breeze’s maiden voyage finally came on June 18, but a series of mechanical breakdowns wore down the public’s patience and the early passages were often half-empty. Finally, in July, the ship picked up steam. Helped by half-price, one-way fares of $16 on three weekdays, it carried 60,000 passengers in August alone. The success came too late, though, and now much of Rochester is holding its breath. Compounding the misery, a federal judge impounded the vessel Sept. 28 when a fuel supplier sued the owners for $370,000 in unpaid bills. In Charlotte, a port-side city neighborhood crammed with hotels, bars and amusement parks during its heyday at the close of the 19th century, a swift retailer revival is now on hold. “We’ve spent too much money — it’s got to come back,” pleaded Stacy Hildebrand, 38, a waitress at the Leadbelly Landing, which had three afternoon customers instead of the usual packed house when the boat came in. Just as waterfront revitalization lifted cities like Cleveland, Baltimore and New Orleans, the ferry is seen by some as a potential economic catalyst, much like Eastman Kodak Co. was a generation ago. The photography firm now employs 20,000 people here, down from 60,400 in 1983. “This is really the most exciting thing to happen in this region in probably several decades,” Martin said.  One major hindrance, he said, had been the failure to get approval from U.S. Customs to carry commercial traffic, which could generate up to $18,000 in daily revenues. That issue has now been largely resolved — trucks will be allowed on board under certain restrictions. But the biggest asset for Rochester, Martin said, would be developing a strong link with the dynamic Toronto area, which is home to nearly five million people. On both sides, “curiosity was just starting to develop,” he said. Not everyone shares his optimism. “In Toronto, they have the opera, they have Broadway and a million other things,” Stan Dernoga said. “In Rochester, they roll the streets up on Sunday. I wish this was Chicago, then you’d have a shot, you’d have a balance there. “Being a Mickey Mouse little town, the ferry generated a lot of interest, but then reality set in. Even if they bring it back, you don’t want to get your hopes up again.” For the latest updates on prospects for resuming service, visit The Spirit of Ontario at http://www.catsfastferry.com/. October 26, 2004 1:59 PM

From Ohio to eastern Pennsylvania to Ottawa and all around Lake Ontario, so far we've seen that the residents of these areas are well aware of the ferry.  Not really interested in taking it, but well aware.  With the latest craze among the ferry supporters being the marketing angle, it rings hollow even before it's started.  Strange.

11 NOVEMBER 2005

False optimism.

Friday   November 11, 2005

For Rent: Fast Ferry     by Cristina Domingues photo by Bryan Beard Published Nov 10, 2005 With the ferry $4.2 million dollars in the red after its first quarter, ferry operators are looking for new ways to bring in revenue. Thursday night it hosted the first party on board the ferry while it was docked at the Port of Rochester. The Hilton women's soccer teams decided the Cat would be the perfect location for their annual banquet. No surprise, organizers say more people than ever signed up to come to the event this year. The ferry has already hosted other group meetings and business presentations. Many on board thought this was a great use of the ferry. "There's going to be time when the boat is going to be docked here and not be able to go out on the lake,” said organizer Dianna Sherwood. “Why not use it for other ideas, celebrations, parties …" "We'd love to enhance the revenue. This is another way we can do that,” said Glenn Gardner, Bay Ferries. “To the extent that the vessel is available and we can hold these in port, that's what we'd love to do." The ferry is available until the end of the year. It will undergo maintenance work in January and February. No set prices have been determined for using the boat for parties. Gardner suggests calling for a quote.

Glad the ladies had a great time.  Imagine a party house, conference centre, restaurant/hotel/retail complex built on a huge pier out from Charlotte Beach à la Santa Monica or Galveston.  THAT would be a great time as well and would be using the project for its intended purpose. 

But OK, money's money and we'll take it any way we can get it even if we rent the boat out at $1,000 an hour (catering not included?) for parties.  Considering the daily overhead and operating costs (staff, loan repayment, etc), that's got to be a fair price.  The Hilton ladies soccer group must have some stiff dues to be able to afford the $3,000 for a three hour soiree.  It WAS $1k an hour wasn't it?

I mean, if we're getting all squishy about a few hundred bucks coming into the ferry bank account, that's going to do diddly-squat to keep the boat from being repo'd and hauled away because the business tanked.

"The ferry is available until the end of the year. It will undergo maintenance work in January and February."

Two months of maintenance work?  Wow.  No income and all expense entered into the ledgers.  And not even a kiddy birthday party during the downtime.  Is this the plan of the ferry corporation for every year?

14 NOVEMBER 2005

Yeah, right.

There's a saying in Canada which makes Americans squirm: The Good of the Many comes before the Good of the Few.  Business interests in the States hate that sentiment as it threatens their ability to ride the coattails of the public cash cow.

Lee Selover and his merry band of merchants could care less about the public losing tens of millions of dollars as long as the ferry is allowed to operate in order to pad their own bank accounts.  Hey Lee?  It may be time to look into another profession... one which doesn't require public money to prop up private ventures.

The ferry terminal merchants are in the same sinking boat as well and would have been wise to stop and think about the viability of some unrealistic proposal BEFORE thinking about how to rake in easy money.

There's so much whining going on around here it makes tired, cranky kindergarteners look like the Optimists Club.

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Dragging our heels, are we?  It's now the third week in NOVEMBER and the September ridership numbers are just being released.. and when the financial results through September will be released is anybody's guess.  It's not as if we're talking about some complex annual financial report of a Fortune 500 company here; it's a ferry for cryin' out loud.

No problem.  A few months ago I wrote the ferry corporation would do everything possible to stretch out the season until the boat was taken out of service for its two month hiatus.  Remember?  That way the slings and arrows of ferry naysayers won't be as fierce and the controversy will cool considerably in the two months.  So the theory goes.

But if the ferry supporters think this website's tirade is going to chill out and fade away, all I can say is: Fat Chance.  I'm in it until the boat sails out of the Port of Rochester for the last time.  The more they withhold from the public, the worse the backlash is going to be when there aren't any more rocks to hide behind.  Should be fun.

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November 15, 2005 6:41 AM

Ferry Ridership Down For September (Rochester, NY) 11/15/05 -- As expected, the number of people who rode Rochester's fast ferry in September did not meet projections. The ferry carried 26,000 passengers for the month. Leaders were expecting 17,000 more than that. Mayor Bill Johnson blames the reduced trips in September and the ferry's delayed start in late June for the shortfall. However, Johnson also said the numbers are somewhat encouraging and that ridership was closer to target in September than in the previous months of service. He said he remains optimistic, but the numbers will have an impact on revenue. Johnson also says any projection made in the original business plan should be thrown out. He said next year's business plan--which is due out shortly--will address that problem. (Oh, why not?  Everything else about the city ferry plan have been tossed aside... why not the ridership projections?) "Our projection numbers have no factual basis… didn't have anything to gauge them on. Our hope was to have a strong season," Johnson said. (A total fabrication.  The city of Rochester's ferry ridership projections were based on the CATS' model... which the city said were too ambitious.  Gotcha again, Bill.) Revenue numbers for September were not available. If there is a shortfall, the city would have to dip into a reserve fund to help offset costs.  (I like that; "If" there's a shortfall....) While the mayor says the ferry corporation is spending the reserve fund more quickly than expected, he does say next year's business plan includes ways to replenish it. (I'll BET.)

'Next year's business plan' is completely worthless even before it's released.  It means nothing as the market demand -- or lack thereof -- will determine the fate of the service.  Bill Johnson's days as mayor are coming to a close as well; a lame duck mayor can say pretty much anything he or she wants.  Once they leave office, their 'plans' become part of the 'former administration' and not worth the time to take seriously.

Bob Duffy hasn't ruled out saying, "Put a 'For Sale' sign on the boat; we're outta THIS fiasco"... in which case "next year's business plans" become "next year's candidate for the paper shredder".

Unless some private organization with massively deep pockets steps up and hands over a few tens of millions of dollars, I say chances are pretty good that "next year's business plan includes ways to replenish it" means dipping into public money... taxpayer funds.   Here's a question: How does the public say 'No'?  Or doesn't the American system of government allow the citizen the option of saying 'No'?

People get the government they deserve.