The Steamship Authority foresees another tough economic year ahead, with its 2010 preliminary draft budget projecting a further decrease in operating revenue.
The draft, presented at Tuesday’s meeting of the board of governors on Nantucket, expects passenger revenues to decline 2.1 per cent and freight revenue to fall 4.6 per cent.
Even when offset by an expected 11.4 per cent rise in rent revenue from barge operations, the overall decline is expected to be 2.1 per cent. Total operating revenue is expected to be just over $81 million.
A longstanding dispute between the Steamship Authority and Ralph Packer’s barge operation over the annual transport of rental cars to the Island for the summer appears set to be fought out in court before this year’s tourist season.
For several years now, Mr. Packer’s Tisbury Towing and Transportation has moved cars for the Hertz rental company to and from the Island, much to the chagrin of the SSA, which has a legislated monopoly over the movement of people, vehicles and freight to and from the Islands.
In the face of legal action by the Steamship Authority, Ralph Packer has finally agreed to stop the unlicensed transport of rental cars to Martha’s Vineyard on his barges for the summer tourist trade.
Passenger traffic to the Vineyard on Steamship Authority ferries fell to its lowest level in more than a decade in March, more than 11 per cent below that for the same month last year.
Not since 1997, said SSA general manager Wayne Lamson, had fewer people visited for the month. And it was not only passenger numbers which plunged. The number of trucks coming and going — another key indicator of economic activity — was down almost eight per cent on the previous March.
The Steamship Authority is set to hit travelers to and from the Vineyard with fare increases totaling more than $1 million next year.
Boat line management proposed the fare hikes on the Vineyard route, as well as increases of $1.5 million on the Nantucket route, as part of the 2011 draft budget at this week’s meeting of the SSA governors on Nantucket.
Frequent travelers off-Island will have more offsite parking options this off-season as the Steamship Authority voted on Tuesday to approve a $225 parking permit option that would run from January to May.
After more than a decade of planning and almost three years of construction, the Steamship Authority’s new Oak Bluffs terminal was officially opened on Wednesday, just in time for the start of the boat line’s seasonal service.
The chairman of the Oak Bluffs selectmen, Duncan Ross, flanked by the SSA’s general manager, Wayne Lamson and Martha’s Vineyard’s representative on the SSA board of governors, Marc Hanover, cut a red ribbon strung across the front door of the new building.
