Recent reporting underscored my great concern for the welfare of the Island and for those who live here. Our fragile supply chain and the financial condition of the Steamship Authority (SSA) are two facets of the same very concerning problem. The lack of foresight and the financial mismanagement of past leadership of the SSA and the board of governors have created this situation. Much of this was identified in the Massachusetts Inspector General’s report.
The 2025 financial report shows $99,492,976 in bonds payable. This results in the requirement for $10,855,000 in principal payments and $4,206,126 interest for a total obligation of $15,061,136 in 2026. That is to say, the SSA started the year more than $15,000,000 in the hole.
There was a modular functioning terminal building in place. It is reasonable to assume that adding additional modules could have provided, at a minimum, a larger ticketing/waiting area and space for operations at a fraction of the cost of the Bob Davis Taj Mahal and additional Woods Hole building, both overdesigned and disruptive to orderly operations. How many dollars could have been saved? The best information I can find indicates the cost for those buildings so far is $50 million, with an additional $10 million to complete!
About $5 million was wasted on a misguided attempt to replace the reservation system. There were obvious early signs that this was not going to work, but the general manager and his board persisted in pursuing this misguided project.
The “new” freighters were clearly a mistake. Shortening of the vessels apparently created a totally transformed hull shape, which affected the efficiency of the boats. They burn more fuel, are slow, and as single-enders, use up time and fuel. Did anyone plan for the large cost overruns in the alterations? Did anyone hire a consultant who could have, using computer modeling, predicted the inefficiency of the altered boats? The question is, In the years of use, how much money will be saved over building new vessels? Could the system function with one new, efficient vessel now, and another in the future to spread the cost?
Why did the retired general manager receive a raise and an 18-month contract from the board? Will they also extend this contract while the SSA faces financial struggles? The board has approved hundreds of thousands of dollars for a needless contract!
What is the effect of this past mismanagement? Fares have gone up, particularly for freight-carrying trucks, which are being charged about 20 percent more. The great majority of everything sold on the Island comes on the SSA boats. Food, clothing, fuel, medical supplies, building materials, and all sundry items are more expensive as carriers raise their prices. The negligence of the management has increased the cost of living for all Islanders. In addition, the SSA treasurer wants to raise excursion costs to Islanders!
Past management has spent whatever they wanted to, and raised fares and parking fees to cover it all. Even a freshman in an economics course learns that if you raise prices beyond a certain point, the quantity of purchases for your product will go down, and despite the increase, you bring in less money.
The past cannot be changed, but it can be learned from. Every effort should be made to lower costs and spending at the SSA. There should be a person on staff whose primary job is to find grants and other funding from state and federal agencies.
Most companies plan for worst-case scenarios, try to accumulate funds for such emergencies, and plan spending to operate in a financially sound manner. The SSA has not done that.
I wish Alex Kryska good luck and fair winds. He has inherited a mess.
Bob Zeltzer is a Chilmark resident.
