Page Three  

08 SEPTEMBER 2004

The view from Toronto:

TODAY'S PAPER

Ferry operator abandons service

Bon voyage: Is the sun setting on The Breeze for the last time?

By KATHERINE HARDING AND JENNIFER LEWINGTON Wednesday, September 8, 2004 - Page A10

The troubled high-speed ferry service between Rochester and Toronto has been abruptly halted, with the private operator blaming governments on both sides of the border. "This is a very difficult decision, but until the other parties involved fulfill their promises and obligations, we have no choice," Cornel Martin, president of Canadian American Transportation Systems, said in a statement last night. The company does not know when the service will resume, but said it wouldn't be later than next April 15. Mr. Martin said that "unnecessary cost burdens" imposed on the Rochester-based company by U.S. and Canadian government agencies would not "give us the opportunity to recover from the losses accumulated during the delay in start-up." The brand-new $42.5-million (U.S.) ferry was supposed to begin sailing last May, but engine problems delayed its launch until late June. The company estimates the delay led to a $2.1-million debt. The company's sudden decision to suspend the ferry service, which wasn't publicly announced until 6 p.m. yesterday, upset passengers at its Toronto terminal. "We just found out about this. I came in to work today to work. Now I might not have a job," a ticket agent told an angry customer who was demanding a refund. The last ferry departed on schedule for Rochester at 7 p.m. One Rochester woman, who was visiting relatives in Toronto and wasn't scheduled to return home until Sunday, managed to get a refund for her ticket. "This is ridiculous. They can't just strand us like this without a good explanation," Antonina, who declined to give her last name, said. Toronto resident Tom Nagel was relieved that he arrived on the last trip sailing from Rochester yesterday. "We didn't even have a clue this was happening until we arrived. I'm really lucky." In a one-page statement, the company primarily blamed Canadian and U.S. customs agencies for its financial woes. "There's a very real business here," the statement read. "It is a shame that there were so many unnecessary roadblocks placed in front of the operation that were totally beyond CATS' control." One of the major roadblocks was U.S. customs agencies' decision not to allow transports trucks on the ferry. Company officials hoped that traffic would help fill the vessel during the off-season. The Toronto Port Authority, which still hasn't firmed up a completion date for a permanent terminal, was also noted as a complication. Company officials declined last night to disclose whether it will lay off employees. Toronto City Councillor Paula Fletcher, whose waterfront ward includes the proposed ferry terminal, commented "Am I disappointed? Yes. Am I surprised? No." She added that the viability of the ferry service "has always been questionable. Nothing's ever gone on time, nothing's ever gone the way it was supposed to." Ms. Fletcher criticized the private operator and the port authority, the federal agency that had pledged to build an $8-million terminal, for failing to share adequate information with the city. Late last night, port authority director-general Lisa Raitt said in a written statement, "We are disappointed that we have received no notice of this action. We have written CATS to ask for a complete explanation of the situation so that we may be able to better understand their action and its implication." In Rochester, city council president Lois Giess said there had been rumblings of financial difficulties for the ferry because of delays in getting approval to carry trucks. "We had heard they were struggling, but that's all," she said, adding that the freight issue had been "one of the biggest disappointments" for the ferry operator. Governments on the U.S. side of the border have pumped public funds into the venture, which has been a dream of Rochester Mayor William Johnson since 1995. The city, the state and the U.S. federal government have collectively pitched in more than $20-million. When CATS came onto the scene in 2000, there were projections that two million people a year would climb aboard two ferries that would crisscross Lake Ontario at least three times a day. Since then, its business case and passenger break-even point have quietly been scaled back three times.

Oh my.  It would appear some Toronto area residents are somewhat indignant that their city is being blamed for the incompetence of a private company.

And rightfully so.  After never whole-heartedly embracing the idea, now Toronto is getting a sound dressing down.

And with $20 million dollar gift from U.S.-based taxpayers, CATS has a helluva lot of nerve pointing a finger at anybody except themselves.  CATS President Cornel Martin pleads with the public to "stick with us... support us..".

Sorry Mr. M; I'd say when the public has just been fleeced of $20 million to help a private company make ostensible wads of cash for itself and its shareholders, we've been 'stuck with' you for far too long as it is.

Just what does the public get in return for their $20 million?  How's that money going to be repaid?  And when?  Or do we just shrug and say, "Oh well.."??

Oh.  Now... about that FORTY YEAR LEASE CATS signed with the city of Rochester for docking and rental space; will CATS be honouring the full term of the agreement -- or -- can they just cut and run if they feel like it?

Do YOU have to honour the terms of YOUR lease agreements?

Rochester is a major embarrassment.

Wednesday, September 8, 2004
		Rochester Time: 3:16 pm

Today's docked ferry riders miffed   File photo The high-speed ferry docks for the first time at the Port of Rochester, in April before it's first commercial voyage to Toronto. Meaghan McDermott, Joseph Spector and Rick Armon Staff writers   (September 8, 2004) — By this morning, it seemed most people who had booked rides for today aboard the high-speed ferry between Rochester and Toronto had learned the service was suspended indefinitely due to mounting debt and bureaucratic battles. Only a few people arrived at the ferry's Charlotte terminal bearing tickets for the cancelled 7:30 a.m. trip. Vanessa Q of Rochester and her sister Lili Roif of Miami had gotten up early and dressed to the nines to prepare for a planned daylong shopping excursion to Toronto. "What are we going to do now?" said Q, adding that she was very disappointed to learn the news. Her husband, Nikolai Goudimenko said he just purchased the two tickets yesterday on the Internet. "I'm surprised they sold us the tickets," he said, shaking his head. Cornel Martin, president of Canadian American Transportation Systems said this morning that ferry employees had been calling passengers to tell them the ship has been docked. Hany Nissiem of Greece didn't get that call. "I think many people haven't had a chance to try the ferry," he said, after being told at the ferry counter that his planned trip was off. "This is too early for this to happen." The highly promoted ferry, which has been in service for less than three months, has been a source of pride for the community and was expected to boost the struggling local economy and tourism industry. Roughly 140,000 people have already ridden it across Lake Ontario, and millions in public dollars have been invested. But now the $42.5 million ferry will sit unused, a devastating blow that could leave a black eye on Rochester for decades. CATS accumulated $1.7 million in debt since service started June 18 and says it can't continue those losses. The ferry's private owners hope to restart service, if they can overcome many governmental obstacles. But it's unclear if and when service would resume. The owners threw out April 15 as the latest service would restart, yet gave no reason for that date. "We can't keep bleeding," said Martin. "We've got to stop it. Every day we go on, it digs us deeper.  "There have always been serious questions about the ship's viability, but officials were shocked it has sunk so quickly. Even with its rocky points, the ferry, named the Spirit of Ontario, seemed to be gaining steam and riders. "This is a tragedy," said John "Dutch" Summers, a head of the Rump Group, a consortium of Rochester business executives. "We were looking for rallying points and things we could be proud of and things that would differentiate us. The fast ferry fell into our lap, and we let it slip away." CATS stopped taking reservations Tuesday afternoon. Tickets already purchased will be refunded, the company said. Laid-off workers on Tuesday night walked out of the new $16 million ferry terminal in Charlotte carrying boxes and desk plants. They declined to comment. The ferry company employed about 200 people. Security shuttered the terminal's doors. Residents and former ferry passengers were dejected by the ferry's demise. "This is surprising," said Bob Mattick, 52, of Pittsford, who recently took the ferry. "It was really nice. I'd do it again." Others say they saw this day coming. "I knew it would happen, but I didn't expect it to happen so soon," said Rabin Salloum, 41, of Rochester. Even more stunning is that the project hasn't come close to reaching its full potential. Toronto just recently started building a permanent terminal on the city's banks. Rochester-area tourism groups were just developing an advertising campaign to draw people from the ferry to Rochester-area attractions. Businesses were counting on the ferry for new customers, and some ventures are still being built inside Rochester's terminal. "I'm ... disappointed in (CATS)," said Louis Bellanca, co-owner of Bellanca's Portside Restaurant on Lake Avenue, near the terminal. He blamed the company "for not communicating with politicians and with their customers. Businesses were really banking on them for future customers." From the onset, CATS has faced scrutiny. The Rochester-Genesee Transportation Authority questioned the company's business plan two years ago, but was eventually cut out of the deal. "The worst part about this is that some people will say, 'I told you so,' and that's the biggest shame of it all," said state Sen. James Alesi, R-Perinton. "Everybody should have been behind this." On Tuesday, the company put the blame on issues outside its control. A last ditch effort Friday to get access to $1.5 million in escrow from financial backer Australian Export Finance and Insurance Corp. and additional money from other private sources failed, Martin said. Contacted Tuesday night in Australia, EFIC spokeswoman Gabrielle Smith said the government agency had just learned that CATS stopped service. She said EFIC officials plan to be in Rochester next week to talk with CATS. Austal Ships, the Australian company that built the ferry and is an investor in CATS, declined comment.The ferry has experienced a string of bad luck. First, it was damaged in a docking accident in New York City as it was being delivered to Rochester. Then, the ship's engines broke down and required $1 million in modifications. Those incidents happened before CATS took ownership of the vessel and delayed the maiden passenger voyage by seven weeks. It was originally scheduled to set sail May 1. Since then, the company says it has incurred unexpected bills: $6,000 per day in pilotage fees, $2,500 in Canada Border Services Agency fees and higher-than-expected fuel costs. It is also losing out on a possible $18,000 in daily revenue because U.S. Customs and Border Protection haven't allowed commercial trucks on the ferry. Otherwise, the ferry, nicknamed The Breeze, would have been successful, Martin said. And if the issues can get resolved, service could be restarted any day, he said. "We had 140,000 passengers over 80 days," he said. "That's more than we need to cover operating expenses."The woes were seemingly compounded last month when the state Assembly rejected a proposal to allow video lottery terminals on the ship. Gambling was expected to aid ridership, especially during slower months. RARMON@DemocratandChronicle.com JSPECTOR@DemocratandChronicle.com MCDERMOT@DemocratandChronicle.com

AHHH yessss.... the 'consortium of Rochester business executives' known (appropriately) as the 'Rump Group' (and no, I'm not making that up).  Such wisdom.  Such foresightedness.  Such business acumen.  Is not the Rochester area truly BLESSED to be the lowly recipients of self-appointed business leaders?

Pompous twits.

These self-aggrandizing Suits live in a world of their own creation.  Insular, exclusive and completely out of touch with the realities of the people they ASSUME will mindlessly and obediently follow their pretentious footsteps.  THIS time however, these pious and smug business Suits have banked on the Little People to make or break their Fast Folly service.  A REAL blunder... because no matter HOW many trips The Suits would make on The Breeze, it still wouldn't be enough to save the service.  The Little People have kicked the tires, taken the test drive and said, "Very nice indeed!  But no sale".

The Suits have failed.  The Suits have not shown (dare I say it?) "Leadership".  The Suits are now the main contenders for the 2004 Most Embarrassing Business Flop for Eastern Canada AND the Northeastern US Award.  ("A big round of applause for these folks!!  They certainly deserve to win this award!!")

Wow.  Cat fights and ever'thin.  Toronto City Council sneers at Toronto Port Authority.

Well... YASSS... we all knew that, didn't we?  City Council was never all that enthused about the project from Day One.  TPA WAS in favour as it looked like a cash cow for the Port.  Sometimes people will buy into the most idiotic of schemes just to make a buck.

And sometimes those greedy innocents get burned.

Toronto City Council : 1       Toronto Port Authority :  0        CATS :  - 20 ... and sinking fast.

Wed. Sep. 8, 2004. | Updated at 04:52 PM

Sep. 8, 2004. 04:11 PM TANNIS TOOHEY/TORONTO STAR The Breeze ferry leaves for Rochester yesterday, possibly for the last time, after the company that runs it suspended service. Miller promises fight to restore fast ferry CURTIS RUSH STAFF REPORTER THESTAR.COM Mayor David Miller told reporters this afternoon that the Toronto-Rochester high-speed ferry, which he called important to both cities, will return to service if he can work with the federal government to resolve the issues that forced the suspension of service yesterday. "I wouldn't call the project failed," Miller said at city hall today. "Toronto's future is intimately connected with its waterfront and if our city is going to succeed, we're going to do it through a rejuvenated waterfront. And transportation is a very important part of that and we thought the Rochester ferry was significant." Miller, who admitted he was "very disappointed" to learn that service on the Breeze was suspended, talked today with Rochester mayor Bill Johnson and tried to get in touch with federal minister Joe Volpe, "but he was in a cabinet meeting." Miller said that the foot-dragging by the federal Toronto Port Authority on building a terminal was instrumental in the decision. He called it "another example of irresponsibility." "Unfortunately, the Toronto Port Authority did not do its job and the people of Toronto have been let down." Miller reiterated that the authority, which is responsible for all the port lands in the city, is "outdated and doesn't belong in Toronto." Asked if the city is doing enough to help out financially, Miller said the city has committed to giving the authority $50 million over 10 years. He also added that the port authority owes the city $20 million in back taxes and Toronto is "not in position to subsidize the federal government or its agencies." The mayor was asked what he and the city could do to restore service. "We can speak up strongly to our federal colleagues." Earlier in the day, the mayor of Rochester told Toronto radio station CFRB that the suspension of the service was "abrupt" and "reckless." "I thought it was much too abrupt to shut this thing down without any warning to the public," Johnson said. He also said the ferry operator, Canadian American Transportation Systems, did not give him or Miller time to intervene to try to correct the problems. "These problems can be resolved. But to just disrupt people's lives as they did (Tuesday) I think was very, very reckless." The ferry company blamed the decision to suspend on start-up delays, unexpected customs charges and high fuel costs, as well as the failure to get a licence from U.S. officials to carry trucks. The company said it was trying to restructure its debt and hoped to resume operations as soon as possible. "The ferry company had indicated that over 140,000 people had ridden the ferry," Johnson said. "It was becoming well-established in people's minds - a lot of the initial scepticism had been overcome." The decision left some passengers stranded on either side of Lake Ontario. "According to reports, (the ferry company) have rented buses to transport people to Toronto and the same buses will bring people back into Rochester, so people won't be trapped," said Johnson. "People don't want to ride a bus to Toronto - they wanted to ride the ferry," he added The company said it had accumulated more than $2.1 million in debt due to a seven-week delay in the delivery of the ship and necessary engine modifications. "We know some private investors that have been talking about putting money into this deal. Whatever the problems are, I think they are fixable and we have to work to get them fixed," Johnson said. In its 80 days of service, more than 140,000 passengers travelled on the Breeze. With files from Canadian Press

And here's a telling item:

Wednesday   September 08, 2004 CATS Rejects Customs Clearance by R News staff  Published Sep 08, 2004 An effort to help revive the stalled fast ferry service has apparently been rebuffed. Since shutting down Tuesday, Canadian American Transportation Systems has said it needs two major bureaucratic issues cleared up to help it resume fast ferry service. One is a daily U.S. Customs pilotage fee . It costs CATS $6,000 a day to have a pilot assist the ferry’s crew in docking the ship each day. CATS is assessed that fee because The Spirit of Ontario flies the flag of The Bahamas. Congresswoman Louise Slaughter announced Wednesday that she has cleared the way for the ferry to fly under the flag of the United States. That would relieve CATS of the pilotage fee. Slaughter’s office said CATS apparently doesn't want that to happen. In a statement, Slaughter said: "My office gained assurance from the U.S. Coast Guard that it was prepared to issue a U.S. flag to the fast ferry today. We have been told however, that CATS asked the Coast Guard to suspend the inspection process." Slaughter said she “can't understand why CATS would say it did not want to sail under the American flag, which would save six-thousand dollars in pilotage fees.” R News is attempting to reach CATS leadership, including President Cornel Martin for a response to Slaughter’s statement. Commander Paul Gugg of the U.S. Coast Guard out of Buffalo said his unit was prepared to arrive in Charlotte Wednesday and deliver a U.S. flag to the Spirit of Ontario. Gugg said while the ferry's inspection and plan review cleared, there was an issue with its documentation.  Gugg said the matter comes down to the ship's ownership and the creditors who’ve bankrolled the company. Meanwhile, the company continues to offer shuttle service to and from Rochester and Toronto to those stranded by the ferry's service suspension. CATS's Martin said Tuesday mounting debt and bureaucratic measures forced the company to shut down temporarily. Martin said early Wednesday CATS remained hopeful it would resume service.

Holy Yellow Journalism Alert!!   Now why would CATS  'reject' the offer to resolve one of the four main issues which is the reason why the ship is sitting idle?  Let's do a bit of logical thinking here (and no, the Gentle Reader should not fear pain at this suggestion). 

The CATS cheerleaders... the ones who still believe (or at least they SAY they do) that the operation can succeed... are using a convoluted form of double-speak which makes no sense to even the dimmest of minds. 

These twits are pointing to the 140,000 passengers saying, "these are sufficient numbers to cover operating costs".  If so, then why is service suspended?

"Wellll... we didn't PLAN on pilotage fees, Canadian Customs charges or increased fuel costs".  Guess what guys?  Those ARE operating costs whether you PLANNED on them or not.  If you screwed up and didn't PLAN on these costs... or resolved these issues PRIOR to the first sailing... then who's to blame?

And obviously, you HAVEN'T realized the number of passengers to cover operating costs... which brings us right back to the main issue first raised here on 08 August 2001; there AREN'T the number of passengers who want to slog down to Rochester to support an operation of this magnitude.

Capacity means nothing.  If there were 10 MILLION passengers... and it STILL didn't cover the operating costs, there'd STILL be the same result: a bankrupt service.  It's simple.

So why would CATS 'refuse'  to re-flag the ship?  CATS isn't... CATS can't.  The US Coast Guard, in seeing it's about to be the target of P.O.'d residents, says, "OK... no problem... here, we'll re-flag the ship.  We just need the ownership papers (ie, title) for the ship and you guys are all set.   You CAN present us with the ownership papers, can't you?"

In a word: No.  The title, if you will, is being held by by the Australian company which lent CATS the money for the ship.  And they're of the mind that this whole project is about to go under... so they're not about to hand over the title if they have to repossess the ship because the loan can't be repaid. (Gee... isn't that just like a bank and a car loan???)  Thus, the US Coast Guard shifts the blame back to CATS... who should have had this resolved prior to the first sail.

CATS has to prove to the Australian loan company that they've gotten past the issues they should have addressed before the 2004 cash grab.  Which they haven't.  And by not doing so, it hasn't shown that it has a bright and cheery future which is what the lenders want to hear.

It doesn't make any difference anyway... there won't be the number of YEAR ROUND passengers no matter whether there was no pilotage fee, customs fee or even a snarky looking Toronto Terminal.  Pull the plug now instead of continue to hemorrhage even MORE money.  How is tapping into an escrow account supposed to resurrect a doomed company anyway?  It would only prolong the demise.

There are lessons to be learned from this whole affair.  Primarily, these lessons need to be understood by the residents of the Rochester area.

But again, I'm not holding out much hope for that.  Traditional, conservative minds tend not to set aside commonly held values to learn much of anything.

Oh, yes.  FerryMania swept through the local area and the business inner circle... delusional and out of touch with the world beyond the Monroe County line... all bought into the Good 'Ol Boy Network's decree that This Will Work.  Guess what?  The Good 'Ol Boy Network was wrong.  Again.  (Can you say, 'High Falls Entertainment District'?  Does the chronically Drowning-in-Red-Ink Frontier Field ring a bell?  Are these Pasty Boys using any common sense by building yet ANOTHER undomed sports venue... to sit collecting snow and litter for over 50% of the time and generating ZERO revenue?)

Wednesday   September 08, 2004

Work is underway at a new port eatery Businesses React To Ferry Shutdown by Veronica Chiesi/Chris Landon File Photo Published Sep 08, 2004 The Port of Rochester houses more than just the fast ferry. Some businesses also plan to open there soon. The Chestnut Tree gift shop is already running. Quiznos, Abbott's, California Rollin' and other businesses are expected to open in the coming weeks. Owners signed a five-year lease anticipating long term success from the fast ferry. Tom Beaman of California Rollin' says he lost $60,000 because he was supposed to open two months ago and hasn't yet. But he says he believes his business can exist in the port with or without the ferry. "God knows that we could use the ferry, but you know that's all a plus,” Beaman said. “I think the sushi bar can operate and bring business executives, college students, lawyers and doctors into this area so they can see this area." California Rollin' plans to open next month, regardless of the ferry's status.

Cry me a river. 

Can you believe these are 'business' people?  Did it never occur to these 'business' people that the numbers 'might' not be there to support the operation?  It occurred to ME...

Rochester... you DO know this major screw-up is being followed around the world?  My website stats are showing a lot of hits from around the world on the search words 'rochester ferry'.  Which brings 'em right to these pages.

The biggest pratfall deserves the brightest spotlight.  Just doin' my part.

09 SEPTEMBER 2004

Thursday, September 9, 2004
		Rochester Time:7:19 am

Signs of hope for ferry emerge amid confusion, dismay Many were caught off guard, but area leaders rally behind a call to resume service.   CARLOS ORTIZ staff photographer The Spirit of Ontario slips away from the Rochester terminal in Charlotte on an afternoon run in mid-August. Ferry service was shut down indefinitely this week in the face of mounting debt, high daily costs and an inability to increase revenue by carrying commercial trucks. What to do Many people wonder what to do if they have tickets for an upcoming ferry trip. Company officials said they would provide refunds for canceled trips or reschedule passengers, but they hope people will hang onto their tickets and use them when the ferry resumes service. If people can't wait, CATS President Cornel Martin said, they can call their credit card companies and have the purchases voided. He said 99 percent of the people who bought tickets purchased them with credit cards. People also can call the company at (877) 825-3774 and leave a message, but many customers have reported not receiving a response. Christine Pritchard, a spokeswoman for state Attorney General Eliot Spitzer, said customers should first try to resolve any dispute with the company. "If a consumer is experiencing difficulty or delay or isn't receiving the response that's adequate, the Attorney General's Office stands ready to mediate," she added. Rick Armon Staff writer   (September 9, 2004) — Confused and disappointed, community and political leaders began rallying Wednesday to restore high-speed ferry service between Rochester and Toronto. But many also expressed dismay that the private ferry company shut down with no warning this week and blamed seemingly everyone but itself for its financial troubles. Canadian American Transportation Systems, the Rochester company operating the new ferry, announced Tuesday that it was suspending service indefinitely because of $1.7 million in debt, high daily expenses and an inability to carry commercial trucks. The ferry project, a private venture that has received millions of dollars in public money from the city, state and federal governments, was billed as the answer to Rochester's slumbering economy and a cash cow for local tourism. But less than three months after starting service, the $42.5 million ship sits idle in the Genesee River at the Port of Rochester. The news caught many — including political leaders who have lobbied for years for the ferry — off guard, especially since the ship had carried 140,000 paying passengers since it started June 18. It also angered and saddened people who had bought tickets for future trips and couldn't get through to the company as they demanded refunds and answers. Web site down The company Web site (www.thebreeze.com) was shut down Wednesday, and many people complained that no one was returning calls left on a CATS answering machine. The sudden announcement has caught the attention of both federal and state officials. The state has invested $14 million in the ferry — $7.4 million as a grant and $6.6 million as a loan. Both Gov. George Pataki's office and state Attorney General Eliot Spitzer's office said Wednesday that they are monitoring the situation. Rep. Louise Slaughter, D-Fairport, a strong ferry supporter, said in a sternly worded statement that she is perplexed. "Local citizens have been so enthusiastic about the ferry and ridership numbers have been high," she said. "With so much support and interest, I cannot comprehend how CATS could suddenly halt service." Politicians from Toronto Mayor David Miller to Sen. Charles Schumer, D-N.Y., said they would do everything they could to restart the service, which linked Rochester and Toronto on Lake Ontario. The ship can carry up to 774 passengers and 238 cars. Mayor William A. Johnson Jr. said he was optimistic. "The thing the public needs to understand is they aren't asking for any more money," he said. "They are asking for regulatory relief." He added that if the current owners "can't make this deal work, I don't doubt there would be other people willing to take it over. This is viable and profitable, and they've demonstrated that. I don't think that this thing will just fizzle and go away." The Greater Rochester Visitors Association urged the community to rally behind the ferry. "This project must be made to succeed," said Craig Curran, chairman of the association. CATS President Cornel Martin said the company has received strong support from some politicians and others in their effort to resume operations. But there also has been much criticism. "It's tough to take the lumps, but the reality is we did what we had to do save the project long term," he said. Refund trouble Mary Poirier of Irondequoit was more interested Wednesday in getting a refund. She had purchased a ticket for a trip later this month. She said CATS withdrew money from her bank Tuesday — the same day it announced service was ending. "Knowing that they are suspending service, they take the money off my debit card?" she said. "That doesn't seem on the up and up." CATS blamed the financial woes partly on the ship hitting a dock in New York City in April on its way to Rochester and then the engines having to be modified. Those problems delayed the maiden passenger voyage by seven weeks, and the company incurred $2.1 million in debt with no offsetting revenue during that idle period. Company officials also pointed a finger at U.S. Customs and Border Protection for not allowing trucks on the ferry, Canada Border Services Agency for imposing customs fees, the Office of Great Lakes Pilotage for higher-than-expected pilot fees and high fuel costs. And they expressed dissatisfaction that the Toronto Port Authority hasn't built a "proper terminal facility" for its passengers there. Those issues, except for the fuel costs, need to be resolved before one of its financial backers, the Australia-based Export Finance and Insurance Corp., will allow the company to access $1.5 million in escrow to keep the ferry going, Martin said. Before it stopped service, the ferry company was losing a possible $18,000 a day in revenue by not having trucks on the ship. CATS officials complained that U.S. Customs originally had cleared them to carry trucks. CATS produced a June 2004 letter from U.S. Customs indicating that the company "complies with all of our requirements to commence operations." While the letter doesn't mention trucks specifically, that was implied in the approval of its overall plan, Martin said. Janet Rapaport, a customs spokeswoman, said the agency has discussed allowing "low-risk trucking" on the ship and had requested that CATS provide the names of companies interested in using the ferry so they could be researched. CATS has not supplied any names, she said. Martin said no local trucking companies CATS knows of meet stringent new guidelines being pushed by customs. Also, because the ship was registered with the Bahamas Maritime Authority and not the U.S. or Canadian government, CATS was required to carry registered pilots on each voyage. Those costs were $6,000 a day, much higher than anticipated, the company said. One issue nearly solved CATS on Wednesday afternoon released a 2003 letter from the Office of Great Lakes Pilotage saying pilots would not be required for docking the ferry and estimated the pilot fees at "$500 for any six-hour period." Company officials said the agency reversed that position. But that issue was close to being resolved, leading some to question why CATS used it as a reason for shutting down. The ship was close to being re-registered with the U.S. government, according to the Coast Guard, meaning CATS wouldn't have to pay any pilot fees. Slaughter said the change of flag was expected to take place Wednesday. Martin said EFIC and not CATS halted the process because of a dispute over how the ship's title would be transferred to U.S. registry. Also, Patrizia Giolti, a spokeswoman with Canada Border Services Agency, said the ferry company was "fully aware" of having to pay the customs fees. CATS also had imposed ticket surcharges to help pay for the customs and pilot fees. RARMON@DemocratandChronicle.com

Optimistic fools?  Maybe.  A few points to consider:

-- The Ferry is like a commercial truck; it makes no money sitting still.  True enough, by suspending service CATS has dramatically reduced its daily operating costs; unfortunately, it's also dramatically reduced its daily income to ZERO.  And every day the Ferry doesn't operate, CATS sinks deeper into debt.  This is an inescapable fact... and at this point, a piddling 1.5 million in escrow isn't going to even clear the debt of 1.7 million already accrued.... and growing larger by each day. 

-- Mayor Bill thinks other business concerns (1)  can come up with the capital to take over a floundering service and (2) can succeed where a specialized business has already failed.  Dream on Bill; nobody loses points for remaining the Eternal Optimist.  They just lose their shirts in good money following bad.

-- Assuming (pretending?) all hurdles are overcome... pilotage fees dropped by re-flagging to a U.S. ship, Canadian Customs fees altruistically dropped to 'pitch in' to Save The Ferry, commercial trucks allowed to cross and a spiffy new Toronto Terminal miraculously springs forth in 30 days... it STILL doesn't address the plunge in ridership due to the lack of interest or seasonal trends.  Can't make much of a profit by switching to a high-speed truck barge... especially when the trucking industry watches tenths of a cent per mile in THEIR operating costs.  And I defy CATS to prove their cost-per-mile for trucks to be any lower than using conventional roadways from Rochester to Toronto.  Saving on gas by paying for pricy Ferry fares doesn't make much sense.

-- Toronto Mayor David Miller is operating in a defensive position.  Rather than voice the Toronto City Council position of 'We told you so', he's shifting the blame to the Toronto Port Authority which pushed for the Fast Ferry project.  Makes sense, no?  There's no love lost between the Toronto City Council and the TPA anyway... let THEM take the heat (even though the City Council dragged its heels to postpone building some white elephant of a terminal like Rochester did... so it could see whether this thing would fly or not.  Smart.  Very smart.)  Now Toronto can choose whether to go ahead and build a terminal which will go unused (by at least the Toronto-Rochester Ferry route) or save the embarrassment and money and leave the Cherry Street facility as is.

The main point to bear in mind: every day the Ferry sits unused in the Port of Rochester is a day deeper in debt.  And considering CATS is financially incapable of even refunding all the unused tickets being held by hapless passengers, that sure sounds like a pretty damn desperate situation. 

Operate the Ferry?  CATS can't even come up with the cash for refunds, let alone gas up.

How far does CATS go before throwing in the towel?  How much more soaking will the gullible public take before saying, "Screw you guys... we've forked over far more public funds to a private company than is either ethical or - possibly - legal?"

"Both Gov. George Pataki's office and state Attorney General Eliot Spitzer's office said Wednesday that they are monitoring the situation."

Translation: 'Start filing court papers, boys; there's going to be a bunch of lawyers getting rich off THIS one'.

And where-oh-where are slick Dominic and Howard?  Last I knew, Cornel Martin was President of CATS (replacing the canned Howard Thomas)... who's the CEO of CATS?

After all the tar-and-feathering is over, I'd be willing to bet Cornel will be giving the universal sign of derision as he hops the first jet back to Louisiana.  In a way, I almost feel sorry for the guy; he got a heaping plate of crap handed to him when he was 'promoted' to the position of President.  A foil, a fall-guy, a patsy.

There's ONE Southern Rebel who won't be singing fond praises of the Great White North. (Not that any Southern sentiment has ever meant anything to a True Northerner.)

Meanwhile, Rochester couldn't be looking any more foolish.  Teary-eyed Rochester area residents valiantly trying to save face while Buffalo and Toronto are cramping up trying not to laugh. 

Smugtown USA lays a big one for all to see.  And in doing so, one can only hope a true lesson in humility is learned.

But -- as noted numerous times previously -- that's doubtful.

"Merle... I think the neighbours are talking about us...."

City&Region Rochester-to-Toronto ferry halted after just three months By JAY TOKASZ News Staff Reporter 9/9/2004 The hard-luck ferry that was expected to revive an ailing Rochester economy while serving as the newest United States/Canada border crossing has been docked, just three months after it was launched. The ship's operator blamed regulatory hurdles in the two countries and mounting debt for the indefinite suspension of service on Wednesday. Despite promising ridership numbers, Canadian American Transportation Systems, the private firm that runs the high-speed catamaran, incurred $1.7 million in losses. "We hope to be back in service in the next few days or the next few weeks at the latest, but if we have to work all through the winter to get these issues resolved, we're going to do that," the firm's president, Cornel Martin, told the Associated Press. The ferry was losing as much as $20,000 per day because it had not yet received approval from U.S. Customs to carry commercial vehicles. "Our lenders said "No, you cannot access the escrow until you resolve issues that are putting a serious financial strain on your operation,' " said Martin. Martin said he was satisfied with ridership - 140,000 passengers over 80 days. Government officials in both Rochester and Toronto were shocked by the company's announcement. Rochester Mayor William A. Johnson Jr. spent much of Tuesday urging company officials to reconsider. "I don't understand. I do believe they were hasty," he said. "These are the kinds of things that leave a horribly bad taste in peoples' mouths, and they're hard to overcome." The ferry's problems seemed "resolvable," Toronto Mayor David Miller said. "Everything indicated that it was doing quite well in terms of passenger traffic," said Miller. "It's clear that there is a viable ferry service" between the two cities, he said. Both Johnson and U.S. Rep. Louise Slaughter, D-Fairport, said the U.S. Coast Guard was prepared to issue a U.S. flag to the ferry immediately, saving $6,000 in pilotage fees, and progress was being made on allowing truck traffic. "Probably the stickiest remaining issue is the construction of the terminal in Toronto," said Johnson. The terms of a major loan to the company required a permanent terminal in Toronto, and Toronto Port Authority officials only recently broke ground on the project, Johnson said. "That has created tremendous problems for (the company)," he said. The ferry, capable of carrying up to 774 passengers and 238 cars, has struggled with bad luck from the beginning. A large gash in its hull while docking in New York Harbor delayed the launch of the catamaran from Rochester by more than a month, and engine problems twice forced the company to load people on buses. The project was greeted with a mixture of hope and skepticism in Rochester, where job cuts at Eastman Kodak Co. have taken their toll. Supporters of the ferry said it would distinguish Rochester from other American cities and help reinvigorate the local economy by bringing Canadian tourists into the area. Detractors said demand for the service wasn't clear and criticized the hefty public subsidy, an estimated $35 million from the city, state and federal governments. City taxpayers alone spent about $5 million toward the project, which included the purchase of the $42.5 million vessel, the building of a terminal and other improvements in Charlotte, the small waterfront section of Rochester. The company was able to counter much of the skepticism over the summer, until Wednesday's docking, said Johnson. "What do they do? They come and snatch defeat out of the hands of victory," he said. The 87 nautical-mile trip between Rochester and Toronto takes two hours and 15 minutes, about 60 to 90 minutes less that the 170-mile drive, depending on traffic. But total travel time, with loading and unloading, usually ends up being about the same. (ed. Hey... where have I read that before??) Some passengers also complained about the price, $56 round trip per adult without a car or $120 round trip for one adult and a car. e-mail: jtokasz@buffnews.com

(OK... cue the paranoia music...)

Now... the best way to trigger Instant Indignation to a Rochester-area resident is to casually mention that "Rochester is a suburb of Buffalo".  Ouch.  The petty little Rochester attitude gets riled up in a flash.

The article above makes no illusion of cynicism.  'Rochester-to-Toronto ferry halted after JUST three months'?  (No editorial comment there, eh?) Maybe if there had been more skeptical and cynical opinions expressed three years ago, the Rochester area would have been spared a boatload of money and bargeful of humiliation.  Instead, the spotlight has only highlighted the foibles, follies and dirty laundry of the area and Rochester business credibility has taken a direct hit.

It's fun actually, as Rochester has always tried to imitate The Other Guys in pretty much every local community initiative.  Buffalo gets a downtown ball park; Rochester follows suit.  Syracuse builds a Mondo Mall; Rochester tacks on additions to an existing mall.  Niagara Falls catches casino fever; Rochester pauses, but opts to be a 'Family Friendly Destination' (as if Niagara Falls Ontario or New York have sunk into sordid pits of debauchery).

Toronto is über-cool; Rochester tries... but is fundamentally incapable.  Doesn't stop it from trying though.

It's all well and good to have a positive and realistic self-image and pride in one's own community.  "AND" realistic.  That's where navel-gazing Rochester has always had a problem.  It's come back to bite some Rochester butt this time.

OK... so Rochester slaps up everything from new suburban malls (which begin to languish from the day they open) to undomed sports venues (which collect trash and snow for 50% of the year).  Idiotic?  Well, YES, but at least it only affects the whiny taxpayers who can't see that sprawl has devastated their own community (and yet they clamour for even MORE).

But when a major Rochester flub starts affecting other communities, that's when the Rochester community needs to slapped upside the head and told to shut up and sit down.  Toronto bears a fair share of the blame since all it would have taken would have been a polite and firm "Thanks, but no thanks".  End of fiasco.

Buffalo, after years of being looked down upon by the arrogance of the Rochester community, finally gets its comeuppance and can't help but exercise a touch of schadenfreude.  Right on, B'flo.

Politician Potshots Time

"The worst part about this is that some people will say, 'I told you so,' and that's the biggest shame of it all," said state Sen. James Alesi, R-Perinton. "Everybody should have been behind this."

WHY should 'everybody' have been behind this if they felt the concept was destined to failure?  Does that make any common sense at all??  Is Following The Crowd so engrained into the Rochester-area psyche that even the feeblest of ideas is supported simply to keep step with what ostensible community 'leaders' say?

Local politicians need to remember who's boss around here.  One too many ill-fated taxpayer-supported initiatives and the voter will be looking for alternative solutions to status quo problems.  This Republican stronghold might just be finally waking up after decades of Business As Usual and a touch of a left-leaning attitude might send voters to the Democratic side or even <gasp> the Green Party.  Sprawl is solidly addressed by the GP platform and no community needs to examine that issue like the Rochester area.

State Senator Alesi needs to can the preaching and tend to the job he's been assigned to do.  Like pass a State Budget on time for the first time in decades.  People who can't manage to perform their own affairs have no business proffering advice to those who appointed them to their position in the first place.  In short: "Shut up Jim and get back to work".  I don't need some overfed suburban conservative telling me how I should think, thank you very much.

Something's becoming abundantly clear here: the tidy little world the Rochester community has worked so desperately to concoct is finally starting to unravel.  Local businesses with over 90 years of history are closing shop.  The venerable employer giant is a mere shadow of its former self and the massive layoffs of the past combined with the additional 15,000 planned within a year will be the proverbial straw that breaks the camel's back.  The gap between the have's and have-not's has never been so wide and liveable waged jobs are becoming non-existent.  The much touted health care system has broken down to assembly-line patient care where physicians are forced by the HMO's to pack as make appointments in a day as possible to maximize profits.

All this is nothing new.  It's simply been a façade which has been maintained until the reality smashes the illusions... and the house of cards collapses.  This is the end of nothing; it's the beginning of reality for the Rochester area.

More indictments of who's REALLY to blame for the trashed venture:

TODAY'S PAPER Flurry of finger-pointing surrounds ferry shutdown Miller takes swipe at port authority, which says cost of terminal an issue By KATHERINE HARDING With a report from Jennifer Lewington Thursday, September 9, 2004 - Page A15   The finger-pointing about who caused the sudden stoppage of a new ferry service between Rochester and Toronto continued yesterday, with this city's mayor squarely blaming the Toronto Port Authority. "They've been working on this for six years and failed," Mayor David Miller told reporters. "That's not acceptable, and it's another indication why the port authority is outdated and really doesn't belong in Toronto." On Tuesday evening, the ferry's private operator, Canadian American Transportation System (CATS), pulled the plug on the high-speed service indefinitely. The company said it is battling a $1.7-million (U.S.) debt, despite carrying 140,000 passengers since its maiden voyage on June 18. Cornel Martin, the Rochester-based company's president, has primarily blamed unexpected customs fees in Canada, high fuel prices and continued delays in getting permission from U.S. customs officials to transport large trucks as reasons for its financial woes. He estimates the company could generate about $18,000 daily in truck-traffic revenue, describing this issue as "very critical too us." Company officials said they tried to restructure its debt, but financial backers warned them on Friday that these issues needed to be resolved before they could access a $1.5-million escrow fund. CATS officials have also blamed the Toronto Port Authority for not finalizing a firm date for the completion of a permanent terminal in Toronto. The federal agency announced last month that the $10.5-million (Canadian) project would be completed by next January. CATS president Mr. Martin denied yesterday that the abrupt cancellation was designed to win government concessions to keep the ferry service afloat. "It's not a tactical move," he said. "It's trying to be honest with our passengers and potential customers as to what the reality is." Mr. Martin confirmed the layoff of 200 employees. Federal Human Resources Minister Joe Volpe said he's disappointed that the company has suddenly made a major issue out of the customs fees without talking to him or other cabinet ministers first. "I reject categorically that the government of Canada has anything to do with undermining the business operation of this enterprise," he said. Mr. Volpe said that CATS knew that he was working on possibly bringing down the fees, which he added are low to begin with, and that "this is out of the blue." He said that it's also "completely off base" to blame the port authority for not properly supporting the ferry, nicknamed the Breeze. Ken Lundy, the Toronto Port Authority's chief of operations and engineering, has requested an emergency meeting with CATS, but as of yesterday afternoon, the agency hadn't been officially contacted by CATS about the shutdown. He said the ferry terminal still isn't completed because the port authority didn't receive financial support from any level of government and had to pay for it itself. Mr. Lundy is unsure about the future of the new terminal, located at the foot of Cherry Street. "Until we get to the bottom of what's happening with CATS, we won't be able to make a decision," he said. Rochester Mayor Bill Johnson told reporters that he wants the ferry sailing again as soon as possible. He plans on lobbying the U.S. federal government to help. Mayor David Miller has made a similar pledge to lobby Ottawa. However, he ruled out giving money to either the port authority or CATS. In Rochester, news that the ferry had quit running disappointed a community that was depending on it to help revive its sagging economy. "The ferry must not sit idle," an editorial in the Democrat and Chronicle newspaper stated. "Too much community spirit and money, public and private, are at stake." Rochester, New York state and the U.S. federal government have collectively pitched in more than $20-million (U.S.). No Canadian governments have directly given money to the ferry operator.

Any question of which government is more fiscally responsible should be obvious.

Naturally, the local fishwrapper feels obligated to offer its expertise in d'affairs du monde:

Thursday, September 9, 2004  Home > Opinion > Editorials   Rochester Time: 8:49 pm     Hurdles that have stopped the ferry must be cleared   (September 8, 2004) — The announced suspension of the Rochester-to-Toronto high-speed ferry is shocking evidence of how close this operation has been running to the financial shoals since its launch in June. It was critical then that the ferry be able to carry commercial trucks to supplement passenger traffic, and it is obviously more critical now. That's an estimated $18,000 a day that the operation has been missing. Even an established, fiscally strong business would find it hard to cover that kind of hole in its business plan. Local, state and federal officials have to pull out all the stops now to win a commitment from the U.S. Customs and Border Protection to allow truck traffic in a way that serves both security interests and those of the ferry company. With such a commitment, the ferry's lenders should allow the company to access an escrow fund created to sustain it through tough times. It's essential that the ferry keep going, even on an abbreviated schedule. If it stops for any length of time, the push to resolve the bureaucratic issues could halt as well, making it more difficult to resume operations. There's public money on the line — the Charlotte terminal, state and federal grants. To keep sailing is not just an imperative for the ferry folks. It's important for this community's self-esteem. To lose such a heralded — and in many ways, successful — venture just 80 days into its life would be a psychological blow for a region that was initially skeptical but came to be believers — cautious believers but believers nonetheless. Ridership on the ferry has been strong in recent weeks as people on both sides of Lake Ontario came to enjoy the fun and luxury the vessel provides. Via the ferry, more Canadians have experienced the best of this region, and the positive effect on tourism and on cross-lake relations has been considerable. And that was just the beginning. Or so it seemed until this stunning development. The ferry company has been tight-lipped about its fiscal woes. If openness had been the byword a month ago, the problems might have been fixed by now. The ferry must not sit idle. Too much community spirit and money, public and private, are at stake.

This mainstream monopoly of a newspaper should be renamed the 'Presumptive-Times'.   The indiscriminant self-appointed 'voice of the people' churns out gross generalizations and outright assumptions which it takes as the true sentiment of the local population.

"It's essential that the ferry keep going, even on an abbreviated schedule."

Oh yes.  Sound reasoning.  Let's see: passengers are knowingly pissed off and wouldn't buy a Ferry ticket if it came with a white hot and a beer because they have no assurances that they'll even sail on the date of their intended departure.  Send a ship out, fractionally filled, with passenger fares not even able to cover operating costs and accelerate the rate of debt.  Sure, THAT makes sense to try and Save The Ferry.

To the D&C editors: If CATS wasn't able to eliminate its debt load during the peak of the Ferry season, what makes you think even a twice-daily schedule is going to help in this OFF-season?  An 'abbreviated' service would only COMPOUND the problem; not solve it.  Even if the daily $6000 pilotage were dropped, CATS still doesn't have the sufficient numbers in the off-season to cover expenses ... or the humongous monthly mortgage payment.

And if the earliest (if indeed, ever) the Toronto terminal can be built is January, watcha gonna do to raise money for the next three months when the debt is doing nothing but building?  HMMMM???

If the Ferry were even partially 'successful', why is it not sailing today?  By what virtue does the Democrat & Chronicle presume to state this was "...a region that was initially skeptical but came to be believers — cautious believers but believers nonetheless"?  Who said anything about people seeing the Great White Light and suddenly 'believing' the Ferry project would be a long-term viable business?

They sure didn't see that in THIS website.  My main contention has been... all along... that while the project may indeed get off the ground, it didn't stand a chance in hell of lasting more than two years.  And so far, that's been proven correct.

"Oh, don't hold a post-mortem quite yet", they say. "There's still a chance it can work".

MMM-hmmm.  One does not need a PhD to know when a body is dead.  And for those who require an official death certificate to be issued before they'll accept the passing of a doomed venture, they might wish to explore some Case Studies in Denial.  Can't believe something which had locals waving Old Glory less than four months ago is now suffering an ignominious demise?

Believe it.

There may be a reprieve here and there, but history will record this past week as the beginning of the end... if not the end itself.

Gee whiz.  Now even the Nation's Capital knows about the mess.  ("Shekon à l'Outaouais!")

Rochester Mayor Bill Johnson: "...the Canadians won't risk an international embarrassment by delaying the start of the service".

Au contraire, mon ami.  (1) It's not 'The Canadians' who are embarrassed now and (2) there's an adage which goes something like, "Poor planning on YOUR part does not constitute an emergency on MY part".

Mayor Bill, you'll just have to do better than that if you want to pin the blame on 'The Canadians'.

Ohhh NOOOO!!  Hate mail from a local logically-impaired!!

I'm insulted!  I don't even rate a 5-second spell check??  Oh, sorry - my mistake.  I assumed people capable of reading English were capable of spelling English.  A grievous error on my part.

I'll go out on a limb here and suggest I've lived in this area for a 'few' years longer than the above author has been alive (Good Lord... at least I HOPE this is the case.)

But it's a very telling indictment of the Follow The Crowd mentality of this community.  Which has resulted in a real dearth of original thought around here.

"leftist buddys"? <rolls eyes> And the Rochester community can't understand why Toronto residents aren't swarming the Port of Rochester?  Now what would lead this linguistically-challenged mental midget to believe Canada was 'leftist'?  How could this person tell what a 'leftist' is or isn't considering the local area is so far to the right-of-centre it makes Pat Robertson look downright risqué?

No matter.  Sour grapes are best served with crow.  And there's going to be a lot of crow consumed around here in very short order.   A sagging Rochester economy?  Compared to the gloomy outlook, these are the GOOD times.

Oh... and part of my reply to the above enlightened one:

Alternative views in the Rochester area?  Just keep on movin'.