The Massachusetts Senate advanced a proposal that would raise the Steamship Authority’s borrowing limit, which could better help the transportation agency electrify its fleet.
During the fiscal year 2024 (FY24) budget debate last week, the Senate adopted an amendment filed by Massachusetts Senator Julian Cyr (D-Truro) to increase the Steamship Authority’s statutory bond authorization capacity by $50 million, to $150 million. The current limit is $100 million.
If sustained in the final FY24 budget, the increase will allow the Steamship Authority to purchase a fourth sister ship freight vessel, help complete terminal restoration projects, and plan for vessel electrification.
The proposal would need to clear House approval before going to Gov. Maura Healey for her approval.
“The Steamship Authority serves as a lifeline for Martha’s Vineyard and Nantucket, linking islanders to goods, services, and resources on the mainland,” Senator Cyr is quoted in a release issued by his office on Wednesday. “In recent years, the Steamship Authority has made considerable effort to update and modernize both its fleet and terminals to best serve Islanders and our visitors. An increase in their bond limit provides the authority with the capability to invest in a reliable fleet, safeguard each island’s economic livelihood, and decarbonize in a changing climate.”
Steamship officials have also voiced support of the proposal.
“We are beginning a critical project to simultaneously convert three new-to-us vessels for use in our fleet,” said Joseph Sollitto Jr., port council chair, Oak Bluffs. “This additional bonding will allow us to pursue the purchase of a fourth sister ship, and to further increase our operational efficiency while continuing to provide lifeline services to the people of Martha’s Vineyard and Nantucket.”
To modernize the fleet, the Steamship Authority has purchased three identical freight vessels, with the option to purchase a fourth vessel. However, escalating costs to retrofit the freight vessels and other needed capital improvements have presented challenges. The cost to retrofit the vessels was much higher than expected, at roughly $15 million dollars per vessel.
“As a public instrumentality of the commonwealth that is totally funded by its fare box, having this additional flexibility to fund our capital projects is vitally important to the ongoing improvement of our organization,” said Robert F. Ranney, board chair, Nantucket.
The Steamship Authority’s current bond limit under statute is $100 million, and was last raised, from $75 million, in 2014. As of March, the Steamship Authority had $58,230,000 in bonds and $33,000,000 in anticipation notes, totaling $91,230,000, Cyr’s office said. The current remaining borrowing capacity of $8,770,000 is insufficient to fund a fourth freight vessel or other necessary projects, the release further states.
Senator Cyr’s office says that raising the Steamship Authority’s bond authorization to $150 million will provide greater flexibility to help cover costs in the coming years.
“Our thanks to Sen. Cyr and his staff for their work on this very important amendment to our bond authorization limit,” Robert Davis, Steamship general manager, said in the release. “I appreciate, as always, his hard work and partnership with the Steamship Authority.”
The Senate FY24 budget will be reconciled with the House FY24 budget in a conference committee before going to the governor’s desk in July.
This is the beginning of another MBTA. They are hardly the lifeline to the islands (MV anyway). They cant keep the fleet they have as being dependable with all the issues and breakdowns. If I remember correctly they said recently they wont be able to staff a vessel due to uncertified crew.
Start the bridge or tunnel. The island has already gone to hell. Bring back the 70’s and 80’s population
Thanks from one of those of the 70’s population. I stumbled ashore in 1970, and don’t often leave, fortuitously. In June we need to leave for a medical appointment, and not being able to get back that day, we’ve decided to make an adventure of it, and stay off-Island until we can get a rez back, 4 days later. That’s assuming the boats we’re on run. I understand from people far more conversant with the secrets of reservation-making that there’s a way to do this exactly one week before we really want to come back, but that seems overly complicated. Senator Cyr is quoting from the rationale for the SSA existence “serves the people of the Islands.” I’ve long thought that that’s not their primary rationale, surely?
The SSA exists to provide transportation to and from the Islands,
The vast majority of their customers are not Islanders.
Who provides better service than the SSA?
The SSA belongs to the year arounders of the islands.
Why is the State sticking it’s nose in our business.
If the SSA needs more money we will just pass the hat.
We take care of our own!
Comments are closed.