The Steamship Authority’s borrowing limit will grow to $150 million.
Massachusetts Gov. Maura Healey signed the state budget on Wednesday, August 10. And included in the budget was a bill passed by both the Massachusetts House of Representatives and Senate that upped the Steamship’s bonding limit by $50 million, up from $100 million.
Steamship Authority officials are praising its passage, saying the new limit will be critical for maintaining a reliable fleet.
“As a self-funded public agency, increasing the bond limit is a crucial step in being able to undertake several pending and planned capital projects,” Steamship Authority General Manager Bob Davis said in a statement issued Wednesday.
The borrowing limit allows the Steamship to finance capital projects, new vessels, and any other future expenditures.
State Sen. Julian Cyr initially proposed the $50 million boost in a bill filed earlier this year in the state Senate. Cyr told The Times earlier this month when the bill passed the House and Senate that the primary need for the increase is to fund the Steamship’s purchase and conversion of a fourth vessel. Because each of the agency’s current vessels has a completely different configuration, the Steamship is faced with challenges when it comes to swapping out boats for maintenance or operational reasons, Cyr said.
Additionally, the bond increase allows more funding for terminal-related projects, like ongoing portwork. And it could eventually help the Steamship convert some vessels to a hybrid model of electric and fuel.
The Steamship’s bonding limit was last raised from $75 million to $100 million in 2014. Officials said in Wednesday’s release that since the limit was last raised, the Consumer Price Index has risen approximately 26 percent. The Steamship says that while they have unused bonding capacity currently, that capacity is not projected to be sufficient for future projects.
In 2022, the Steamship started a project to replace its aging fleet of freight vessels with the acquisition of three offshore supply vessels, with the possibility to buy a fourth. The Steamship says that once converted, the three freights will be capable of transporting required freight and supplies.
“On behalf of the Steamship Authority, its port communities, and the members of its board and Port Council, I thank our legislative delegation for their support in this effort, including State Sens. Julian Cyr and Susan Moran and Reps. Dylan Fernandes and Kip Diggs, as well as the entire Cape and Islands delegation,” Steamship board chair Robert Ranney said in a statement.
What is the ratio of of the SSAs debt limit to revenue ratio relative to other government run ferry operations?
Again not good news please tell me when they get a $50M grant
Should the SSA operate with zero debt?
When was the SSA’s last increase in borrowing limit?
This is just going to drive ferry rates up. The Islands should subsidize the SSA to keep the rates reasonable for everyday for hard working patriotic families.
Baker would have signed it too, he’s a Republican, not a MAGA!!!
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