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Ferry
service on course for 2004 |
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Tuesday,
June 24, 2003
Muskegon Chronicle
Dave Alexander
It's full speed ahead for ferry service between Muskegon
and Milwaukee in 2004.
The U.S. Maritime Administration has granted Lake Express LLC
a $14.5 million federal loan guarantee to construct a new high-speed
ferry boat. That ferry is expected to begin Muskegon-Milwaukee
operations early next summer.
The news hit Muskegon Monday afternoon, prompting community
leaders to reach for superlatives as they began reacting to
the Lake Express announcement.
"
This is another great day for the Muskegon community," Muskegon
Mayor Steve Warmington said.
The "commitment letter" received Monday by the ferry
service developers at Lubar & Co. in Milwaukee is the word
Muskegon officials have been waiting for since 1970, when the
Milwaukee Clipper ceased operations. Restoration of cross-lake
ferry service has become Muskegon County's No. 1 economic development
objective.
"
We are pleased to announce that we have received the commitment
letter and are reviewing the terms," Lake Express principal
David Lubar told The Chronicle late Monday from his Milwaukee
office. "If we are able to accept those terms, we will
have formal press conferences (in Muskegon and Milwaukee) in
the next 48 hours to make the announcement."
The Muskegon announcement is expected to be made in conjunction
with Thursday's Muskegon Economic Forum luncheon at the Muskegon
Country Club, featuring an address by Gov. Jennifer Granholm.
At that time, Lubar said his company should be able to determine
the timing of the ship construction and the beginning of the
high-speed ferry service.
"
We have full expectation that it will be good news," he
said.
Plans are for Lake Express to use the federal loan guarantee
to secure private sector funding for the $18 million launch
of a new ship and cross-lake service. The federal loan guarantee
should provide Lake Express with more favorable interest rates
from a private lender.
Lake Express will build a 191-foot catamaran jet boat at Austal
USA in Mobile, Ala. The Australian-designed twin-hulled aluminum
boat should carry 250 passengers and 46 vehicles.
The new ferry should be capable of speeds of 35 mph crossing
Lake Michigan, making a dock-to-dock trip in two hours and
20 minutes, according to Lake Express officials. Lake Express
plans three-round trips a day with a season from May to November.
The existing Lake Michigan Carferry's operation of the SS Badger
between Ludington and Manitowoc, Wis., can carry 620 passengers
and 185 cars. The Badger makes two round trips a day at speeds
of 18 mph with a four-hour crossing. Fares between the two
services are expected to be comparable.
One remaining question is where a high-speed ferry will dock
in Muskegon. The city will lease a ferry dock to Lake Express
but that location has yet to be determined.
Lake Express officials have attempted to come to an agreement
with the West Michigan Dock & Market Corp. for its downtown
Mart Dock. The backup dock location for the Mart Dock is city
land adjacent to the Hartshorn Municipal Marina.
Receiving a "Title 11" loan guarantee was no easy
ticket for Lake Express and their supporters in Milwaukee and
Muskegon. The federal ship-building assistance program had
run into a political buzzsaw in Washington with conservatives
calling it "corporate welfare."
The program -- which provides federally funded guarantees if
the loans were to go bad -- had several loans fail, some major
ones for construction of huge ocean-going cruise ships. Title
11 is designed to assist the U.S. ship-building industry, which
has trouble competing against foreign shipbuilders due to labor
costs.
At the same time, interests in Ludington and Wisconsin lobbied
hard against the Lake Express application in support of the
only cross-lake operation, Lake Michigan Carferry and its SS
Badger. Lake Michigan Carferry officials thought the federal
loan guarantee was "unfair" competition and that
Lake Express would threaten the Ludington service.
Lake Michigan Carferry President and co-owner Bob Manglitz
was dejected Monday when he learned of the Maritime Administration
decision.
"
We think it is extremely unfair for the U.S. government to
compete against us," Manglitz said.
Maritime Administration spokeswoman Robyn Boerstling said the
Lake Express application had to be reviewed by the U.S. Department
of Transportation's Inspector General's Office. Congress has
put restrictions on the Title 11 program rules that had to
be reviewed by the Inspector General, she said.
In deciding the federal loan guarantee, Maritime Administration
officials concluded that Lake Express and the Lake Michigan
Carferry offer two different experiences providing two different
travel products geared toward different markets. Ludington
supporters say there is one, limited market.
About eight weeks ago Lake Express received positive signs
from the Maritime Administration and decided to begin construction
of the ship. Lubar said construction began in design and initial
hull work but it was stopped when the political hurdles for
the application arose.
Lubar said his company now must work out schedule details with
Austal.
Relinking Muskegon and Milwaukee will be a huge boost to Muskegon
and West Michigan tourism, community leaders predict. A Muskegon
Area Chamber of Commerce analysis shows that 150,000 passengers
a year will bring $26 million in additional economic activity
to Muskegon. Lake Express is expected to create 50 permanent
jobs.
"
This is the most fabulous announcement I have heard in my career," said
Joanne Hatch, tourism development director for Muskegon County. "This
will double the tourist interest in our community and all of
West Michigan."
Chamber Board Chairman Russ Strong said the cross-lake ferry
service will "put us on the map." Besides bringing
more people through town, the ferry service will improve Muskegon's
image throughout the entire West Michigan region, he said.
Muskegon County government -- which in 1987 put a bond issue
before voters for renovation of an existing ship for a cross-lake
ferry system -- has been promoting resumption of cross-lake
ferry service for decades. County Board Chairman Paul Baade
said he was "thrilled" with the news.
"
All I have heard my whole life about Muskegon is potential,
potential, potential," Baade said. "Doggone it, we're
now going to realize that potential."
© 2003 Muskegon Chronicle. Used with permission |
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“On
August 11, 2001, we celebrated 50 years in Western Michigan.
You don’t do that without excellent relationships
with everybody.”
Mike Pepper,
General Manager
Howmet Corporation
an Alcoa Business |
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