Voters Should Ask: What Benefit Would Justify Public Investment in Ferries?

2010-09-09 / Opinion

To the Editor:

Recently making news in this area is the City of Mackinac Island's consideration of the following:

(1) The purchase of docking facilities in three Great Lakes ports (St. Ignace, Mackinac Island, Mackinaw City).

(2) Granting one ferry operator a monopoly in bringing passengers and freight to Mackinac Island.

(3) At sometime in the future, the City of Mackinac Island may feel the need to become the owner/operator of this ferry monopoly.

While this news may inspire visions of the future of Mackinac Island tourism, such as hundreds (instead of the present thousands) of visitors enjoying a trip on THE Cityapproved ferry, a meal at THE Cityapproved restaurant, riding a bicycle rented from THE City-approved bicycle rental, buying souvenirs from THE City-approved gift shop, and perhaps staying overnight in THE City-approved hotel, I hope Mackinac Island voters and taxpayers will ask: What benefit to the community would justify such an investment?

There are many examples in our country's history of government promotion of, investment in, and ownership of transportation systems and facilities. Harbor and water transportation facilities have been developed publicly over our entire history. In the 1800s, railroads were subsidized to the extent needed to develop a coast-to-coast transportation network using the best available technology. In the 1900s, development of air travel required public investment in and ownership of airports, which individual airlines couldn't afford to develop. And, of course, there's the example of our extensive road system.

I haven't heard of any developmental need of the current Mackinac Island ferry service requiring public investment.

Many communities have invested in mass transit systems, including bus, rail, and boat. This public investment in mass transit was a result of the drop in use of mass transit as autos became more affordable and road systems were developed. As providers of mass transit quit the business (as it became unprofitable), public ownership and operation of mass transit [took over from] private ownership.

I haven't heard of an impending disappearance of ferry service due to the unprofitability of the ferry business, requiring public investment to keep ferries operating.

What compelling need of the Mackinac Island community would justify the use of its resources to purchase docking sites in three Great Lakes ports? Maybe it's just not apparent to lay people.

I don't need to dwell much on negative aspects of transportation monopolies. Notice how public transit monopolies have had to respond to rising costs. Most public transportation entities have been faced with the necessity (often multiple times) of cutting costs by cutting services. Being monopolies, their service reductions aren't compensated for by a competitor's services. Their reductions in service translate into a spiral of reductions in passenger traffic, resulting in further service reductions, resulting in less traffic, etc.

Contrast that with our local example of the benefits of having multiple ferry service providers. Our three local companies responded to rapidly rising fuel costs (with corresponding depressed passenger traffic) by making slight service reductions. Since the multiple ferries didn't all have to reduce trips at identical times, passengers experienced minimal inconvenience from those reductions. Prices rose, but so did all transportation and related costs during this time.

There are examples of public ownership of ferry systems. There are small systems such as the Eastern Upper Peninsula Transportation Authority (operating the Drummond, Sugar, and Neebish Island ferries in addition to bus service), and large systems such as the Washington State ferry system, which provides a water "highway" system serving multiple communities. If public control or ownership of the ferries is needed, perhaps it would be better if it weren't controlled or owned by a single municipality. Maybe the Michigan State ferry system should be born again (operating the Beaver, Mackinac, Bois Blanc, Drummond, Neebish, Sugar, and Grand Island ferries).

Of concern to Mackinac Island's neighbors (St. Ignace and Mackinaw City) is to what extent the City of Mackinac Island's choices will negatively affect them.

(1) How much loss of tax revenue will St. Ignace and Mackinaw City experience if the City of Mackinac Island purchases Arnold/ Union Terminal Piers property? Should the City of Mackinac Island decide to take this valuable property off its own tax rolls, that's its privilege. But is it fair for Mackinac Island to impose such a removal from tax rolls of the mainland communities? This purchase would be for Mackinac Island's own interests, not those of the mainland communities. What's the probability of Mackinac Island reimbursing the mainland communities for their loss?

(2) Will the City of Mackinac Island consider any interests other than its own when selecting a monopoly ferry line? Mackinac Island could choose as its monopoly a ferry service regarded by one of the mainland communities as its poorest "citizen" among the ferry lines (one that provides less employment or whose operation is more intrusive or less attractive in some way). If the necessity for a monopoly ferry exists, shouldn't all the communities directly affected by the selection of that monopoly ferry have a voice in that selection? Maybe the three communities should each grant franchises for ferry service. In the future they each might choose a different monopoly service so none could dock in either of the other communities.

(3) Will the City of Mackinac Island require a monopoly ferry line to use the City-owned facilities on the mainland, regardless of how a mainland community wishes to control its ferry-related traffic? Potentially, at least, ample opportunity for the City of Mackinac Island to impose its will on other communities would result from Mackinac Island's purchase of mainland docking facilities.

Not being a voter in the City of Mackinac Island, I can't vote for or against candidates based on this issue. To prevent the City of Mackinac Island from negatively impacting the tax bill for my property in the Village of Mackinaw City, all I can do is vote for state legislative candidates who support a new state law prohibiting cities surrounded by water from owning docks.

Daniel Robbins Mackinaw City

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