Boat Line Fares Set to Go Up

Steamship Authority Governors Review $78 Million Budget; Managers
Say Tariff Hike Needed to Cover Costs

By JAMES KINSELLA
Gazette Senior Writer

Passenger fares are expected to rise more than eight per cent on the
Martha's Vineyard route under a set of across-the-board rate hikes
proposed Tuesday by Steamship Authority managers.

For the second year in a row, Authority managers are requesting $4
million in rate increases, $3 million of which would be assessed to the
Vineyard route and the remaining $1 million to the Nantucket route.

Among the proposed rate hikes: one-way passenger fares on the
Vineyard route would rise 50 cents to $6.50, and the off-season round
trip excursion car fare for Islanders will go up $7 to $52.

The $4 million rate hike is part of a proposed $78.3 million
operating budget for the coming year outlined by boat line managers at
Tuesday's boat line meeting at the Hyannis terminal. The budget is
8.5 per cent higher than this year's budget of $72.1 million.

Senior managers presented the proposed fare package and operating
budget for consideration by SSA governors. The board is scheduled to
vote on the actual fares and budget for next year at the Oct. 26 meeting
in Vineyard Haven.

In other developments this week, the Authority's two new
ferries - the passenger and car ferry Island Home and the
high-speed ferry Iyanough - may be arriving weeks later than
scheduled. Carl Walker, director of engineering, reported that the
shipyards building the vessels are encountering delays.

Under a possible scenario, the Island Home, originally slated for
delivery Nov. 29, might not appear until mid to late January. The
Iyanough, scheduled for delivery in mid-November, may not arrive until
early to mid-December.

But Falmouth governor and board chairman Robert Marshall emphasized
that the contracted delivery dates on the vessels have not changed.

SSA general counsel Steven Sayers said the shipyards - VT
Halter Inc. in Moss Point, Miss., which is building the Island Home, and
Gladding-Hearn in Somerset, which is building the Iyanough - can
be subject to penalties if they fail to deliver the vessels on time.

Following the conclusion of Tuesday's public session,
governors went into executive session to discuss, among other matters,
possible litigation concerning the delivery of the vessels.

As for next year's budget, higher depreciation, insurance and
vessel fuel oil costs are leading Authority managers to anticipate the
need for higher fares.

SSA treasurer Robert Davis anticipates operating costs will rise 4.9
per cent over the current year. Mr. Davis said he expects that
depreciation costs will rise by $2.6 million or almost 50 per cent,
based on the introduction of the Island Home and Iyanough ferries as
well as other Authority capital projects. The boat line also anticipates
that vessel fuel oil will cost nearly $900,000 more, an increase of some
15.7 per cent, and that employee health costs will increase by over
$800,000, or 7.4 per cent.

And all these added costs come amid a trend of declining passenger
and automobile traffic.

Mr. Davis said the boat line needs $4 million in rate increases to
meet the Authority's operating expenses and to have enough money
to meet debt service and fund the equipment replacement account.

Of the $3 million to be raised on the Vineyard route, $950,000 would
come from passengers, $1.25 million from automobiles, $750,000 from
trucks, and $50,000 from higher parking rates.

Authority managers have proposed raising one-way adult passenger
fares from $6 to $6.50. With the 50-cent port embarkation fees charged
by both Falmouth and the Vineyard ports of Vineyard Haven and Oak
Bluffs, the rate increase effectively translates into a $14 round-trip
cost.

Boat line managers also have proposed raising the one-way child or
senior citizen rate by 25 cents to $3.25; the 10-ride book by $4 to $52;
and the 46-ride monthly commuter book by $10 to $120.

Round-trip excursion rates in the off-season would rise to $52 for
vehicles under 17 feet, and to $72 for larger vehicles.

Summer excursion rates would increase by $10 to $83 for vehicles
under 17 feet, and by $10 to $103 for larger vehicles.

One-way rates for vehicles are also scheduled to go up.

Commercial freight rates for trucks under 20 feet will increase the
same as for automobiles, with trucks 20 feet or longer paying 8.5 per
cent more.

The cost of an annual parking permit at Woods Hole would rise $50,
to $800, and the annual permit at Palmer avenue would increase $25, to
$575.

Of the $1 million to be raised on the Nantucket route, $300,000
would come from passengers, $150,000 from automobiles, $535,000 from
trucks, $10,000 from barge unloading fees and $5,000 from higher parking
rates.

The SSA does not plan to increase fares for the high-speed ferry on
the Nantucket route, where the boat line is trying to win back market
share from Hy-Line, a private company that also operates a high-speed
ferry on that route. Including embarkation fees, the SSA charges $59 for
a round trip on the fast ferry.