Page Six  

23 SEPTEMBER 2004

Thursday   September 23, 2004

A fan of The Breeze expresses her views (ed. Catchy slogan.) Mayor "Optimistic" Ferry Will Sail by Cristina Domingues Published Sep 22, 2004 After meeting with the fast ferry's lenders, Rochester Mayor Bill Johnson said Wednesday he is cautiously optimistic the ferry will resume service. The mayor said he can't disclose many specifics from the meeting because all had to sign confidentiality agreements. He did say the boat is not being sold and the flagging and trucking issues are within a window of resolution. The mayor said the lenders will try to resume fast ferry service if it makes financial sense. He says the lenders want to see if the ferry is a viable operation. “That's what the lenders are motivated by,” Johnson said. “This is not a charitable work here on their part. Do not misconstrue me: they want their money back. But they understand that a boat sitting here in this harbor cannot make their money back. There's nobody out there in Buffalo or Oswego in the Great Lakes that wants to buy this boat." Johnson says CATS is looking to find other investors and says some have expressed interest in the ferry. The lenders now head back to Australia. They will report their findings and decide what steps to take. The mayor expects to hear from them in a week.

Bill... enough of the shifting of responsibilities.

It's not up to the lenders (EFIC) to make sure the Ferry project is fiscally successful.  I can see this coming; if EFIC denies CATS access to the $1.5 million in escrow, great accusations that "EFIC was the cause of the Ferry's demise" will thunder across the local media outlets.

That would be like a car owner blaming the bank because they can't repay their car loan.

Does EFIC have an interest in seeing the Ferry project succeed?  Of course.  But as a business, all EFIC is primarily concerned with is: a fat loan repayment cheque is in their office by the monthly due date.

"...There's nobody out there in Buffalo or Oswego in the Great Lakes that wants to buy this boat."

HEY there.  Is anybody surprised?   This isn't some modest little pleasure craft trolling the waters of some balmy waterway.  This is a state-of-the-art, $42.5 million ship whipping across some of the most unpredictable and treacherous system of lakes in the world.  There are more than 6,000 ships that are now resting in heaps on the bottom of the Great Lakes.

Winter is no time for ANY ship to be plying the Great Lakes... regardless of technology.  If the largest Great Lakes ore carrier of its time, the Edmund Fitzgerald (711.2 feet in length, 75.1 feet in breadth) could disappear within minutes in November, how much arrogance would it take for the same to happen to the Breeze (284 feet in length, 78 feet in breadth) in January?

Passenger ferries are fine when the alternatives either don't exist or there's a clear and significant benefit to the passengers as in greatly reduced travel time... or cost.

The Breeze meets none of these requirements.  By CATS' own admission, "The Breeze Fast Ferry has been designed not as a replacement for driving but as an exciting new alternative. It will provides a safe, reliable and stress free method of traveling, all year round."

"An exciting new alternative".  That's IT??  That's the reason for using this service that 'millions' of passengers are (ostensibly) demanding??  See the profound error in corporate judgment?  The 'Well-I-Like-and-Can-Afford-Polo-Ponies-So-That-Means-EVERYBODY-Likes-and-Can-Afford-Polo-Ponies' mentality.

As for no interested buyers on the Great Lakes, that should come as no surprise either.  With cross-lake bridges, tunnels and high speed expressways (as well as planes for the TRULY impatient) there's dubious need for a dedicated service which touts itself as 'an exciting new alternative'.  Other communities around the Great Lakes have so far agreed by their lack of rushing to buy a Ferry tied up in the Port of Rochester.

That's not to say there's NO need for a Fast Ferry on the Great Lakes... the Lake-Express High Speed Ferry between Muskegon Michigan and Milwaukee Wisconsin appears to be enjoying marginal success.. enough that it's still in operation, anyway.  It forms a link between I-94 in Wisconsin and I-96 in Michigan and saves car travelers time and headaches by avoiding Metropolitan Chicago.   A quick look at a road map shows the obvious link between Wisconsin and Michigan:

2-1/2 hours crossing time.  Still doesn't explain winter crossings or whether there will be enough demand to support the operation, but at least there MAY be some justification for the service from a geographical perspective.

The same can't be said for a Toronto-Rochester link.  The time-savings aren't there, neither is cost-effectiveness to either the passengers OR the Ferry operators.  And as it's been repeatedly pointed out here, expecting Torontonians to flock to the Rochester areas attractions just isn't based in a lot of reality, so the Rochester-As-A-Destination theory doesn't hold water.

'Exciting new alternatives' may be fine for amusement parks, but they stink when taxpayer money, investor loans and long-term business plans are concerned.

24 SEPTEMBER 2004

Friday   September 24, 2004

Ferry Truck Traffic Cleared by R News Staff Published Sep 23, 2004 CATS confirmed Thursday night that there is a U.S. Customs plan being prepared to allow The Spirit of Ontario to carry commercial truck traffic. CATS President Cornel Martin said an e-mail is circulating saying commercial vehicles will be able to board the ferry even if they don’t meet the requirements. The ferry operator had counted on truck traffic to make the business work. Stiff regulations prevented The Breeze from carrying trucks. CATS said it lost tens of thousands of dollars in potential commercial truck traffic during the 80 days the ferry was up and running. The company cited the loss of that money as one of the reasons why it was forced to suspend service two weeks ago. Martin said the change in U.S. Customs involved two matters for which CATS is still awaiting final details. “They (the U.S. Customs Department) will allow trucks that didn’t previously meet the requirements they had set forth earlier to use the ferry. There still seems to be a couple of questions in an e-mail. One is that it says if trucks do not meet the requirements, it will have to go to a customs examination center,” said CATS President Cornel Martin. “We're not quite sure where the center will be located, or which center they're going to be required to use,” added Martin. “And they say that the cost of that will have to be paid by the importer. Meaning the person bringing the product into the country.” Martin was unaware of the actual cost to the hauler, or whether that cost would discourage haulers from using the ferry. Martin said the commercial truck traffic news fueled CATS "cautious optimism" that ferry service would resume. CATS continues to search for private investors to help it recover from $1.7 million dollars in losses during its first few months in business. (ed.  Not to mention the added debt from a few weeks of sitting tied up at the dock.) CATS is also awaiting word from the Australian lender EFIC. Officials from EFIC spent the last week in Toronto and Rochester gauging CATS viability as a ferry operator. It will weigh the company's future in deciding whether CATS can access $1.5 million in an escrow account that would provide capital to restart the service. (ed.  Oh, so that's a 'free' $1.5 million which doesn't have to be repaid?  That says to me, $1.7 million in debt PLUS $1.5 million in another loan for a total of $3.2 million in debt.  These guys are a walking advertisement for Di-Tech.com.)

WHEW!  Wotta relief!!

Hey, now that the commercial truck traffic has been allowed to use the Ferry, all our problems are solved.  No need to have confident consumer passengers... yup, those truckers are just going to line right up at an unknown customs examination center to pay an unknown amount of examination fee chargeable to either the importer, the hauler or both (we're just not sure right now).

Sound business plan.  A concise course of action.  A bureaucratic snafu unraveled.  'Leadership' personified.

Only...

Nothing's been solved.

But the locals are grasping at straws and this one's too seductive to ignore.  So dust off those pom-poms and hand-scrawled 'Save Our Breeze' placards...

We've got us a high-speed truck barge.

Friday   September 24, 2004

Ferry Backers Leave Town by Seth Voorhees Published Sep 23, 2004 After a week of meetings, the Australian lenders who backed the fast ferry finally left Rochester Thursday. CATS, the ferry's operator, wants access to a $1.5 million dollar escrow account. CATS suspended ferry service between Rochester and Toronto two weeks ago, amid mounting debt. The lenders, from the Export Finance and Insurance Corporation, EFIC, spent a week scouring CATS' financial records, and meeting with local and Canadian leaders. CATS president Cornel Martin told R News even if the lenders say yes to CATS, more private investment is needed to ensure the ferry's future. Given the ferry's shaky, short history, who would take the risk? “It depends on how strongly you feel about the community and the desire of the community to move forward,” said Martin. “There is some upside, but it's gonna be far away.” Martin says he has been contacted by potential private investors, but wouldn't name them. He says CATS won't contact those potential investors until after the lenders make their decision. That's expected to happen by the middle of next week.

"...who would take the risk?"   “It depends on how strongly you feel about the community..."

Wotta crock.  Wotta load of nonsense.

Tell you what, Cornel.  You feel so 'strongly' about this community, why don't you 'invest' 50% of YOUR income into the project.  I'm quite sure the $15,000 would help pay for at least ONE day of a Ferry crossing.

What's that?  You mean you earn MORE than $30,000 a year as President of CATS?  How MUCH more than $30,000?

$10,000?  $50,000?  $100,000?  Just how much ARE you being paid?  Do YOU have enough wherewithal to potentially lose hundreds of thousands of dollars and not go under?  No?

What makes you think investors will be lining up to do the same?  Pathetic.

Friday   September 24, 2004

Failure could lead to "risky" reputation Ferry Could Impact New Development by Anthony Pascale photo by Helen Moore Published Sep 23, 2004 If the fast ferry doesn't get back up and running, some fear it could hurt Rochester's future prospects for attracting new businesses. President of the Rochester Downtown Development Corporation, Heidi Zimmer-Meyer, says Rochester could be viewed as a risky place to do business if the ferry fails. (2) “It's bad psychologically for a region,” said Zimmer-Meyer. “The ability for us to be proud of ourselves and that sort of message gets telegraphed every time you're dealing with a lender or an investor or a business that may potentially locate here,” she said. "I would hope that this would be looked upon as an individual project that perhaps what we needed to do was more care, more closer scrutiny in terms of what the business plan looked like,"(1) said Sandra Parker, President of the Rochester Business Alliance. Both Parker and Zimmer-Meyer say they are optimistic the ferry will resume service. Rochester Downtown Development Rochester Business Alliance

"If the fast ferry doesn't get back up and running, some fear it could hurt Rochester's future prospects for attracting new businesses."  "...Rochester could be viewed as a risky place to do business if the ferry fails."

Need other examples of some rather succinct observations in this website?

".. perhaps what we needed to do was more care, more closer scrutiny in terms of what the business plan looked like.."

(1) September 15 : "That's why it's so critical to approach a private company's request for investment with a cynical eye and an in-depth examination of EVERY last detail from EVERY last perspective.  That means taking a look through the eyes of the people who are the intended customers... NOT simply listen to a bunch of SUITS who say, "Build It and They Will Come"."

(1) September 11 : "Gov. George Pataki's office has said the state is monitoring the situation.  (ed. Seems to me with dumping $14 million of State funds into a private company, there should have been a 'touch' more scrutiny BEFORE 'investing'.)"

"... Rochester could be viewed as a risky place to do business if the ferry fails."

(2) June 10 : "Thursday, June 17, 2004.  That's the final deadline.   Either that tub hits the waves - or your credibility... and quite probably, the venture - will be sinking faster than you can say, "But...".  Both the public and the media are sharpening the skewers."

(2)  June 17 : "Hey, Governor Pataki... you keeping track of all this money down the toilet?  Congresswoman Louise Slaughter... how many ill-fated Rochester ventures are you going to go to bat for before saying, "you've spent all your allowance... now either you pay for it yourselves or it doesn't get built"?"

Yup.  Not only has CATS put its credibility on the line, by extension so has the entire Rochester community for not taking a stand and calling The Breeze nothing more than a a very quick White Elephant.  If such a blatantly obvious business blunder was able to be given the public's nod, that alone speaks volumes about the judgment of the community in general.  Any community foolish enough to buy into a boneheaded idea like this surely can't have much business acumen.

Federal and State grants and loans?  For what?  There hasn't been a very good track record of these public monies being spent prudently or giving a semi-decent return on the dollar.  Now there are rumours about replacing a perfectly functional interstate bridge over the Genesee River downtown with a 'signature' bridge à la the Peace Bridge between Buffalo and Fort Erie.

Rochester, New York.  The city which can never seem to see itself as it is.  The great poseur always in search of an image.

Pathetic and sad.  Truly pathetic and sad.

26 SEPTEMBER 2004

Sunday, September 26, 2004
Home > News > Local News	Rochester Time: 6:15 pm

Ahhh yes.  This is where Collective Amnesia takes hold... or at least so community and business leaders, Ferry supporters and key political  figures are hoping.

"Sweeping the mess under the carpet."  "Out of sight, out of mind."  "Let's not talk about it."

"Moving on."

NOPE.  Not THIS time.  One major screwup can slide by; a litany of multi-million dollar community projects which start to tank from the day they open is too much to simply forget.  This has gone on for far too long and it's got to stop.

If only Rochester area residents were getting the financial shaft, it would probably be just business as usual.  But when ALL New York State residents are left holding a very empty bag, it's time to cancel the allowance and tell Rochester "No more freebies".

And if Dominick Delucia thinks laying low and 'declining comment' is going to shift responsibility, he's wrong.  VERY wrong.  Of all people who need to be held accountable for the ill-conceived concept, the fiscal incompetence and the inevitable demise of a publicly-funded private company, it's Delucia.  Incorporation laws prevent creditors from attaching liens on  personal property of corporation boards of directors... a real injustice considering the taxpayer will lose THEIR property if they fail to pay their taxes... which fund the boneheaded projects... of which they had little to no input in the first place.

Will the Rochester community rise up, demand culpability and hold those responsible for this Fast Fiasco accountable?  Probably not.  Such a humiliating flop after such pompom-waving enthusiasm might be preferred to be forgotten faster than it took to fail.  "Let's not air our dirty laundry on an international scale", right?

WRONG.  This is ONE time smug Rochester pretentiousness isn't going to be allowed to gloss over such a high profile screwup.

From the paper which brought you the Heroine of Lake Ontario, Jan Wong:

TODAY'S PAPER Ferry's failure leaves Rochester reeling City wonders about mismanagement; investors consider more funding By KATHERINE HARDING Monday, September 20, 2004 - Page A8 ROCHESTER, N.Y. -- Joseph and Julie Fischette were supposed to ride the high-speed ferry to Toronto this weekend to see Mamma Mia. Instead, the only trip they made was to the deserted ferry terminal to get a glimpse of the $42.5-million (U.S.) boat that has turned this beleaguered city inside out. "We wanted to see it before it is gone for good," Mr. Fischette, 88, said as he sat on a bench in front of the recently renovated terminal. "You never shut down something that is making money. You just don't," he said. "These people didn't plan properly. It's a real shame our money was used." "These people" are the owners and senior management of Canadian American Transportation Systems, a private Rochester-based company that unexpectedly pulled the plug on the three-month-old operation this month. Despite claiming to have carried 140,000 passengers in 80 days, the majority from Canada, CATS said it is broke: $1.7-million in the hole. The ferry project has received about $35-million in loans and grants from the city of Rochester, the state of New York and the U.S. government. CATS blamed high fuel costs and bureaucratic battles on both sides of the border for its financial woes. The Toronto Port Authority was blasted for not being even close to having a permanent ferry terminal built. Canada Customs was criticized for charging the company about $2,500 a day in fees. And U.S. customs officials were blamed for not allowing CATS to transport large trucks. The company estimates that could generate about $18,000 daily in revenue and help get it profitable during the quieter winter months on Lake Ontario. CATS officials say they need to resolve all these issues before they can tap in to a $1.5-million emergency fund controlled by one of its lenders, Export Finance and Insurance Corp., an Australian government agency. The ferry's top investor is the boat's maker, Austal Ships of Australia, which has about a 25-per-cent stake in the project. Officials from EFIC were in Toronto from Australia last week on a fact-finding mission to figure out what went wrong. This week, they will wrap up closed-door discussions in Rochester before heading back to Australia, where a final decision will be made about giving CATS more money. A source participating in those discussions said that EFIC officials expressed "grave concern" about how the multimillion-dollar operation could shut after only three months. The government agency has backed high-speed ferry projects valued at $1.5-billion in more than 30 countries. Michael Jackson, the agency's chief operating officer, wouldn't talk about the ferry's future because he's bound by "strict confidentiality rules." Cornel Martin, CATS president, told Rochester reporters recently that he was hopeful the ferry could be operational by Oct. 1. However, most of the company's 200 employees were let go last week. He also denied that the company's problems are due to mismanagement. Mr. Martin wouldn't respond to a request for an interview. A CATS spokesman said he was waiting until EFIC wrapped up its meetings to discuss the ferry service's future.  (ed. Strange.  Mr. Martin seemed to be available to local Rochester media requests.  Could it be Mr. Martin only wanted to reply to a perceived 'friendlier' hometown media and public, now could it?  Toronto business doesn't suffer incompetence with too much gentility.) A senior CATS source told The Globe and Mail that the company is currently "playing a high-stakes poker game. "We need concessions, and we need them badly," he said. "Nobody wants to see this fail. The congressmen, the senators, the mayor [Rochester's Bill Johnson], they all need to make this work." The source added that he expects EFIC will demand that a new operator be brought in to start operations up again in the spring. Figures submitted by CATS to New York state officials in 2002 indicate the company said it expected to lose about $1-million during its first year of operation. It speculated it wouldn't be in the black until the sixth year of operation. Aaron Reali hopes that, whatever happens, The Breeze will sail again. Mr. Reali, general manager of Nola's BBQ, a restaurant and bar close to the ferry terminal, said The Breeze brought much needed excitement to the depressed area. "Before, Toronto seemed so far away. The Breeze changed that." He said there are many theories being floated in Rochester about why the ferry shut down. However, like a lot of people here, he primarily blames CATS management. Since the boat stopped running, Mr. Johnson has unsuccessfully campaigned to have CATS open its financial books to the city and state. He's looking for answers about how this venture could have sunk so quickly, despite receiving significant government funding. "The fact of the matter is, CATS consistently keeps their cards close to their chests," he recently told a Rochester newspaper. "One of the things I want is a straight answer at some point, because it doesn't add up."

The Gentle Reader is respected enough to be able to detect journalistic 'flavour' when they read it.  The Globe & Mail... that venerable national Canadian daily... is more than qualified to print a story from a Canadian perspective.  The reader is urged to read between the lines to gain an appreciation of the Canadian sentiment towards the CATS debacle.

And that's all I need to say about THAT.

And then there's the Toronto Sun:

Sun, September 26, 2004   Soooooo, what's up, Dock?   MARK BONOKOSKI FOLLOWS THE BREEZE'S WAKE TO A LARGE LAND DEAL IN THE ROCHESTER HARBOUR   By MARK BONOKOSKI   THE HIGH-SPEED ferry, The Breeze, hasn't turned a screw since the first week of September, and can today be found floating at its U.S. terminal in Rochester like a massive $42.5 million bathtub toy -- its future now dependent upon whether its Australian lender will agree to a bail-out. Eighty days of operation was all it managed. Its owners, Canadian American Transportation Systems (CATS), blame the sudden scuttling of its Rochester-Toronto ferry service on a myriad scenarios -- its $2.1-million debt reportedly caused by everything from bureaucratic cockups on both sides of the border, high fuel costs, the lack of a permanent terminal in Toronto, Coast Guard piloting costs, overzealous Canadian customs fees, and U.S. customs' refusal to let it provide 18-wheeler highway rigs with a shortcut across Lake Ontario -- the last being a roadblock lifted last week with an announcement that pre-approved commercial trucks will be allowed aboard. Nonetheless, CATS president Cornel Martin argued The Breeze was still a success -- carrying some 140,000 passengers during the 80 days its screws actually turned. "That number clearly exceeds the number of passengers per day needed to cover operating costs," said Martin. "The people of Rochester and Toronto have proven that they want a high-speed ferry service across Lake Ontario." MISCONCEPTIONS In the midst of all this, however, certain misconceptions have arisen which the corporate attorney for the City of Rochester wants cleared up -- some of which involve the lease agreement CATS signed with Rochester. Deep in the Licence, Lease and Management Agreement between CATS and the City of Rochester -- Article 5, Paragraph 18 -- is a clause which appears to allow CATS to continue land development in the Port of Rochester even if its ferry service is terminated, regardless of reason. According to the City of Rochester's corporate attorney, however, "subsequent documents" between CATS and Rochester clear up any misconceptions here, and the so-called development land is really nothing more than the "footprint" for the terminal building and its parking lot. "(But) if the ferry does not fly, and we all hope it does, then CATS is out," says counsel Linda Kingsley. A Toronto lawyer, who asked not to be named, and who is counsel to a Canadian company approached by CATS to tender a proposal for specific concession rights told The Sun that, judging by her interpretation of the lease agreement, the ferry service had the appearance of being "merely window dressing for the master development plan." The ferry could be sold at minimal loss, the Toronto lawyer argues, offering that the lease agreement left her with the impression that the real money is in the land, not the ferry. It is an interpretation, however, which Rochester's chief lawyer Kingsley categorically nixes. Back in October 2003, a press release issued by Rochester Mayor William Johnson announced that a joint venture called The Charlotte Harbour Group was selected to serve as master developer for approximately 10 acres of land near the ferry terminal in Rochester. Development plans were for a mix of residential and commercial properties with an estimated price tag of $100 million. Charlotte Harbour is a joint venture between Maplestar Development Co., a start-up operation, and the internationally-prominent Lehman Brothers of New York. Maplestar is a sister company of CATS. 10 ACRES But, like the aforementioned lease agreement, Rochester's corporate attorney says Charlotte Harbour's selection as master developer for the surrounding 10 acres has also led to faulty conclusions. "Council may have chosen (Charlotte Harbour), but an agreement with the city has never been signed because (we) have never come to terms. I'm corporate counsel for the city. I should know," says an agitated Kingsley. What it comes down to, she believes, is a case of too many people being willing to believe too many things. Almost from the onset.

" Ouch "

Oh My Goodness.  I guess I should just leave the above story to speak for itself.  (Yeah... like THAT'S gonna happen...)

What's so interesting about this wonderful piece of literary muckraking is the in-depth examination of the legal tidbits which point to major manipulation of public sentiment and public financing.

Thanks, Mark.  One would have thought (well... at the very least, hoped) the local Rochester media would have delved deeper into the organizational monkeyshines instead of leaving it to a Canadian journalist -- once again  -- to point out the behind-the-scenes truth. 

(Gotta be careful about those Canadian writers... you just never know when they'll do something audacious like print the reality.)

Hats off, Mr. B.  You sir, are an accomplished reporter trying to sort out fact from the far more abundant stupidity.

28 SEPTEMBER 2004

How IGNOMINIOUS.

Tuesday   September 28, 2004

The ferry now under watch. Ferry Impounded After Lawsuit Filed by Lynn Wesley and Lisa Carino File photo Published Sep 28, 2004 The company that supplied the Spirit of Ontario fuel filed a lawsuit that's led a federal judge to order the fast ferry impounded at the Port of Rochester. The lawsuit, filed in U.S. District Court by Amerada Hess Corporation, was something Canadian American Transportation Systems recognized could happen. CATS believed it could head the lawsuit off. The development caught City of Rochester officials, including mayor William Johnson, by surprise. The fuel supplier filed suit claiming CATS owes it more than $370,000 for sulfur diesel fuel it supplied for the ferry service. Federal judge Michael Telesca ordered U.S. Marshals to impound the ferry. The move enables to the government to prevent the ferry from moving from the port before the lawsuit is resolved. An attorney for Amerada Hess would only say that they do not comment on pending litigation. The Breeze has been sitting idle in Charlotte at the Port of Rochester for the past three weeks with what owners are calling financial problems. Johnson and city leaders met with CATS co-owner Dominc DeLucia regarding the recruitment of potential private investors. All involved are still determining what impact, if any, the lawsuit and impounding of the ferry will have on efforts to restart ferry service.

And the local fishwrapper, no stranger to sensationalism, offers this juicy tidbit:

Tuesday, September 28, 2004
Home > News > Local News	Rochester Time: 10:31 pm

Judge impounds ferry: $370,000 debt Suit: 'Spirit of Ontario, her rigging, tackle, apparel, furniture, engines, etc. may be condemned and sold'   JAY CAPERS staff photographer James and Grace Battaglia from Greece, walk away from the fast ferry at the Port of Rochester. The couple say they visit the ferry, "every other day, it seems like," many times with their granddaughter Anna Grace Baxter, 3, who says, "let’s go see the ferry; I hope it’s moving." Gary Craig and Rick Armon Staff writers (September 28, 2004) — A federal judge today impounded the high-speed ferry, the Spirit of Ontario, after a fuel supplier sued the ship owners for what it claims are more than $370,000 in unpaid bills. U.S. District Judge Michael Telesca today ordered that the ferry be locked down so it could not leave the jurisdiction until the litigation is resolved. Telesca ordered the U.S. Marshals Service to take steps to ensure that the ferry does not leave the Port of Rochester. The decision was news this afternoon to Canadian American Transportation Systems, the private ferry operator.  “That’s one we had not heard,” CATS President Cornel Martin said, adding that he would investigate the issue. Amerada Hess Corp., which supplied fuel for Rochester’s high-speed ferry, filed suit Tuesday in U.S. District Court against Canadian American Transportation Systems, the private ferry operator. Amerada Hess says the ferry company owes $372,868 in unpaid fuel bills. The fuel supplier, which is headquartered in New York City, “has a maritime lien against the vessel,” according to the suit.  Geoffrey Ferrer, a New York City-based attorney for Amerada Hess, declined comment. “It’s our policy that we don’t comment on pending litigation,” he said. Amerada Hess has demanded to be paid, “but payment has been refused and no part thereof has been paid,” according to the suit, which also asks that the “Spirit of Ontario, her rigging, tackle, apparel, furniture, engines, etc. may be condemned and sold to pay such judgment.” CATS abruptly suspended the ferry service three weeks ago, saying it had financial problems and couldn’t continue operating. The shutdown occurred after only 80 days in operation and after carrying about 140,000 passengers. Since then, CATS and its financial backers have been discussing how to resume service. It’s unclear how Telesca’s decision will affect those discussions. The Amerada Hess suit is the second filed against CATS in the last week. Corporate 800, a Tampa-based telecommunications company, filed suit last week in state Supreme Court, alleging that the ferry company has paid only $38,043 of a $55,022 bill. Many other creditors, including landscapers and travel agents, also have said they haven’t been paid.

Angst and Worry.  But not to worry!

Just need a few of the local gang to come up with anywhere between $2 million to $10 million to get the Ferry service started again (with the operative word here being ' started ').

There are a string of conditions which need to be met before the boat is untied... paying creditors is only one of them... and it's expected that EFIC will add a few hurdles of its own if.. IF... they decide to open the escrow.

The World's Most Expensive Band-Aid might be used to try and close a massive wound.  Just as a quiet little voice of reason, getting the Ferry started does nothing to obviate the fact that there aren't enough passengers to make the entire service profitable.  Just as it's been pointed out here ad nauseum.

But hopeful locals are quick to say a few hundred Torontonians 'had a good time' while on this side of the lake... and if a few hundred Torontonians were all that were needed to keep the boat afloat, all would be peachy.

Obviously, a few hundred... or even a few thousand Torontonians aren't going to keep the service profitable.  Literal millions of passengers are required.  Millions... not hundreds and not thousands.

But many locals are in such profound denial, they'll use the weakest of rationale to show the Ferry would be successful.  Saying, "They like us" is a ludicrous argument when a multimillion dollar highly specialized service is floundering in Red Ink.

OK.  Here's an example of how Rochester-area business needs to keep an eye on the community they wish to attract; it's a related item which has some very relevant meaning (or damn well SHOULD) to... oh, I dunno... say CATS.

Tue, September 28, 2004   Port agency lost $5.3M last year   SAYS ISLAND AIRPORT DOWN $2M By ROB GRANATSTEIN, CITY HALL BUREAU THE TORONTO City Centre Airport is drowning in a lake of red ink and the only life preserver is a bridge, the Toronto Port Authority said yesterday. The agency this week released its financial statements for 2003 showing the island airport lost $2 million last year. "It's a lot," said Lisa Raitt, the authority's CEO and harbour master. The situation is getting worse, she said. In 2000, the airport had 115,000 passengers fly in and out of the island. In 2003, the number plummeted to 45,000. Raitt expects only 35,000 passengers this year. "The bridge is the answer for us," she said, adding access is the key to making the downtown airport viable. AIRCAN CUTS BACK Another huge issue has been Air Canada. The carrier -- the biggest revenue generator at the airport -- is down to four round trips to Ottawa a day. Flights to Montreal were dropped last year. Regional Airlines is suing the city for $500 million for its decision to halt the bridge to the airport, Mayor David Miller's first big victory last year. FLIGHT SCHOOL CRASHED The island airport also lost the ATI flight school, the biggest at the airport, due to bankruptcy last year. Raitt couldn't say what would happen to the island airport as losses mount and the bridge -- with $8.3 million spent on planning and steel so far -- looks less likely. Overall, the port authority lost $5.3 million in 2003, a result its biggest critic, Community Air, the group that wants the island airport shut down, called "miserable." Raitt said there were big costs associated with getting the Rochester ferry going, and with settling a legal dispute with the City of Toronto. There were also costs associated with downsizing. Port business also suffered after imports of steel arriving from the U.S. fell by 87%.

Toronto Port Authority?  Now where have we heard of that before?

Oh, yeah.  That's the Toronto agency CATS was dealing with in the development of the Ferry service... that's the agency which warmly opened its arms and said, "Oh my yes please come to Toronto and it'll only cost you x-amount of dollars and we'll set up a slick terminal on this side of the lake because we love Rochester and this will help us both in raising desperately need cash to save our asses".  THOSE guys.

Now it's important to remember the Toronto City Council, headed by Mayor David Miller, is the Big Cheese in the city of Toronto.  City Council and the Toronto Port Authority are at loggerheads... City Council wants to get rid of the TPA and manage the Port of Toronto itself.  The TPA naturally, is in self-preservation mode... employees usually are motivated to protect their jobs for some reason.

Thus, when some out-of-town outfit approaches the TPA,  dollar signs light up and the TPA sees a way to stem it's hideous bottom line of red ink.  City Council says, " Rochester??  Two or three daily round trips year round?  Get real."

OK.  See why CATS reports back to Rochester that 'Toronto is enthusiastic' about initiating Fest Ferry service?  CATS should have cheered 'The Toronto Port Authority is enthusiastic".  Toronto couldn't care less... the TPA couldn't care more.  Intent and motivation are pretty key issues here.

The Toronto City Council versus Toronto Port Authority feud is nothing new and had more Rochesterians been aware of this, they might have been a tad more skeptical about the whole deal.  At least the media might have raised a few concerns about the City Council-TPA relationship (although the local navel-gazing nature extends most definitely to... or because of... the local media).

But it should warm Rochester cockles to know their community had a hand in driving the Toronto Port Authority into oblivion as the Toronto City Council uses this fiasco to add to the list of reasons why the TPA should be dissolved.  Well done!

Now 'Rochester' will be synonymous with 'failure by association'.  A fine tradition to build on.