Post by markkarj on Aug 9, 2008 3:48:19 GMT -8
An interesting piece. My big question is that now that the Washington Marine Group's plans to run the fast cats as an alternative to BC Ferries is clearly out of the picture (as indicated in the column), what might happen to the ships? Would they have a date with a cutting torch?
www.canada.com/vancouversun/columnists/story.html?id=32d9f23f-2cd3-4db5-92fa-0e198b5bc8d6
B.C. government plan to privatize ferry routes has been cast adrift
Vaughn Palmer, Vancouver Sun
Published: Saturday, August 09, 2008
VICTORIA - When the B.C. Liberals remade the coastal ferry service in 2003, one of their stated goals was to encourage competition.
The Liberals said the drive for "alternative service delivery" (ASD) would mean more choice for the public, more pressure on the government-owned monopoly to innovate.
Critics saw ASD as a step toward dismantling the publicly owned service and delivering the routes to private operators.
But it hasn't worked out as either the government or its opponents envisioned.
BC Ferries provided an update on the search for alternative service providers in a report last week to the independent ferry commission.
After five years, there's been no dismantling and no end to the monopoly. Nor is there any more choice for the public, nor competition to spur BC Ferries.
Ten of the two dozen or so ferry routes have been considered for hand-offs to private operators.
The ferry corporation actively sought alternatives for the Mill Bay to Brentwood Bay route near the provincial capital. Two potential operators responded; one later withdrew.
Ferries subjected the remaining proposal to internal and outside reviews, then concluded that it was better able to operate the service in a cost-effective manner. "The process is now complete."
A private operator approached BC Ferries with a proposal to take over the Denman Island and Hornby Island services on a trial basis. The corporation did explore the possibility for a time. However, "the arrangement was terminated in February."
All four routes serving the North Coast and the Queen Charlotte Islands were announced as possible candidates for outsourcing. After the sinking of the Queen of the North in 2006, "BC Ferries elected to devote its finite resources to restoring service to the northern routes and ensuring timely acquisition of replacement vessels."
It has since purchased one ship, contracted with a German yard for a second, and remains in discussions with the province regarding a possible third.
"These discussions will need to be finalized before the ASD process can be restarted for the northern routes."
The company also prepared a "strategy" regarding the possibilities for the two routes out of Powell River, one linking to Comox, the other to Texada Island.
That was submitted to government in September 2005, and Ferries has no intention of proceeding further until "a response is received from the provincial government to the strategy."
So, one possibility rejected outright, two terminated in unexplained fashion, four back-burnered for more than two years, another two awaiting the next move from Victoria after almost three years. Which relegates the grand experiment in alternative service delivery to a single test case, and a tiny one at that.
BC Ferries did go with a private operator for the service out of Langdale, linking to Gambier and Keats islands.
But that route is scarcely representative, as it is the sole passengers-only service.
You hear a variety of explanations for why BC Ferries has been able to maintain an iron grip.
The provincial subsidy, which exceeds the total take from fares on some routes, is regarded as an unfair advantage by any would-be competitor. But the government insists the same subsidy would be available to private operators, if they chose to take on one of the subsidized routes.
Over the years, the ferry corporation has been able to build up advantages in terms of experience, resources and back-ups, whereas one of the few private operators to enter into direct competition discovered what happens when you venture into these waters without sufficient backup.
Harbour Lynx, a foot-passengers-only service from downtown Nanaimo to downtown Vancouver, failed in 2006 after an engine breakdown put its one and only vessel out of service.
The Washington Marine Group has looked at establishing a rival service using the three fast ferries it built for the previous New Democratic Party government.
The company was proposing to run the three on a route from the Vancouver waterfront to a site south of Nanaimo.
But three years after the marine group first floated that possibility, the three Fast Cats remain tied up on the North Vancouver waterfront.
Apart from all the longstanding advantages enjoyed by Ferries, there's the aggressive stance taken by president and CEO David Hahn. When Hahn was brought in from the U.S., he was thought to be part of the Liberal privatization plot. Instead, he has proven to be a jealous protector of company turf -- and surf.
Nor do the Liberals seem to mind that their plan for alternative delivery of ferry services has been sidelined. The governing party has lost much of its enthusiasm for privatization, as evidenced by the lack of pressure on BC Ferries to give up even a small piece of the action.
www.canada.com/vancouversun/columnists/story.html?id=32d9f23f-2cd3-4db5-92fa-0e198b5bc8d6
B.C. government plan to privatize ferry routes has been cast adrift
Vaughn Palmer, Vancouver Sun
Published: Saturday, August 09, 2008
VICTORIA - When the B.C. Liberals remade the coastal ferry service in 2003, one of their stated goals was to encourage competition.
The Liberals said the drive for "alternative service delivery" (ASD) would mean more choice for the public, more pressure on the government-owned monopoly to innovate.
Critics saw ASD as a step toward dismantling the publicly owned service and delivering the routes to private operators.
But it hasn't worked out as either the government or its opponents envisioned.
BC Ferries provided an update on the search for alternative service providers in a report last week to the independent ferry commission.
After five years, there's been no dismantling and no end to the monopoly. Nor is there any more choice for the public, nor competition to spur BC Ferries.
Ten of the two dozen or so ferry routes have been considered for hand-offs to private operators.
The ferry corporation actively sought alternatives for the Mill Bay to Brentwood Bay route near the provincial capital. Two potential operators responded; one later withdrew.
Ferries subjected the remaining proposal to internal and outside reviews, then concluded that it was better able to operate the service in a cost-effective manner. "The process is now complete."
A private operator approached BC Ferries with a proposal to take over the Denman Island and Hornby Island services on a trial basis. The corporation did explore the possibility for a time. However, "the arrangement was terminated in February."
All four routes serving the North Coast and the Queen Charlotte Islands were announced as possible candidates for outsourcing. After the sinking of the Queen of the North in 2006, "BC Ferries elected to devote its finite resources to restoring service to the northern routes and ensuring timely acquisition of replacement vessels."
It has since purchased one ship, contracted with a German yard for a second, and remains in discussions with the province regarding a possible third.
"These discussions will need to be finalized before the ASD process can be restarted for the northern routes."
The company also prepared a "strategy" regarding the possibilities for the two routes out of Powell River, one linking to Comox, the other to Texada Island.
That was submitted to government in September 2005, and Ferries has no intention of proceeding further until "a response is received from the provincial government to the strategy."
So, one possibility rejected outright, two terminated in unexplained fashion, four back-burnered for more than two years, another two awaiting the next move from Victoria after almost three years. Which relegates the grand experiment in alternative service delivery to a single test case, and a tiny one at that.
BC Ferries did go with a private operator for the service out of Langdale, linking to Gambier and Keats islands.
But that route is scarcely representative, as it is the sole passengers-only service.
You hear a variety of explanations for why BC Ferries has been able to maintain an iron grip.
The provincial subsidy, which exceeds the total take from fares on some routes, is regarded as an unfair advantage by any would-be competitor. But the government insists the same subsidy would be available to private operators, if they chose to take on one of the subsidized routes.
Over the years, the ferry corporation has been able to build up advantages in terms of experience, resources and back-ups, whereas one of the few private operators to enter into direct competition discovered what happens when you venture into these waters without sufficient backup.
Harbour Lynx, a foot-passengers-only service from downtown Nanaimo to downtown Vancouver, failed in 2006 after an engine breakdown put its one and only vessel out of service.
The Washington Marine Group has looked at establishing a rival service using the three fast ferries it built for the previous New Democratic Party government.
The company was proposing to run the three on a route from the Vancouver waterfront to a site south of Nanaimo.
But three years after the marine group first floated that possibility, the three Fast Cats remain tied up on the North Vancouver waterfront.
Apart from all the longstanding advantages enjoyed by Ferries, there's the aggressive stance taken by president and CEO David Hahn. When Hahn was brought in from the U.S., he was thought to be part of the Liberal privatization plot. Instead, he has proven to be a jealous protector of company turf -- and surf.
Nor do the Liberals seem to mind that their plan for alternative delivery of ferry services has been sidelined. The governing party has lost much of its enthusiasm for privatization, as evidenced by the lack of pressure on BC Ferries to give up even a small piece of the action.