PUBLIC LANDS HIGHWAYS DISCRETIONARY PROGRAM - …



FERRY BOAT DISCRETIONARY (FBD) PROGRAM

PROJECT APPLICATION

Please review the program information document pages 6 to 8 for required information.

1. State: Ohio

2. County: Erie County and Ottawa County

3. U.S. Congressional District No.(s): District 9

4. U.S. Congressional District Member’s and Senators’ Names: Congresswoman Marcy Kaptur, Senator Sherrod Brown and Senator Robert Portman

5. Project Title: Kelleys Island Ferry Boat Project (State Ranking #1 of 3)

6. Location (Service Termini and Ports): The Kelleys Island Ferry Boat Lines, Inc. (“KIFBL”) has been in existence since 1989 and is the sole vehicular/passenger ferry service to Kelleys Island, Ohio. The ferry boat line is part of the National Highway System. It operates a regularly scheduled service on Lake Erie between Marblehead, Ohio and Kelleys Island, Ohio, connecting State Route 163 and State Route 575, which are collector highways. These highways are part of the Lake Erie Coastal Ohio Trail, which is part of the National Scenic Byways program. Along with the regularly scheduled service, on-demand service is provided into all of the other US Lake Erie islands. KIFBL also provides service into Canada when the demand warrants it. As the other Lake Erie islands and areas experience the growth that Put-in-Bay and Kelleys Island have experienced, additional ferry services would be needed and become a regular service route for KIFBL as well.

7. Ownership/Operation: KIFBL is considered to be publicly operated and therefore qualifies to apply for funding through FHWA’s Ferry Boat Discretionary (FBD) Program. Since KIFBL is the sole vehicular/passenger ferry service to Kelleys Island, Ohio, the general public receives substantial benefit for their federal dollars being used to construct this vessel and for it being placed into service. Environmental benefits are one way the project gives back to the public through the use of modern technology in construction and outfitting the vessel. Also Tier 2 diesel engines would be used which reduce emission from the current Tier 0 engines by approximately 40 - 45%. A third benefit would be the usage of alternative energy. Another benefit for the public is through the economic impact of the project on the nation, which is achieved in a couple of areas. The construction of a new vessel brings economic benefit to the shipyard and community where the vessel is being constructed. Not only will the construction help preserve jobs, but would create additional jobs as well. Economic benefits would also be realized by KIFBL as the new vessel would be able to haul greater quantities of passengers and vehicles than the currently utilized vessels. This means less vessels are needed to do the same amount of work, cutting down on overhead. With that benefit, KIFBL will be able to pass the savings on to the customer. The project also has a larger picture benefit for marine commerce. The construction of this new ferry boat has an impact on advancing intermodal transportation that would best serve the country. The new vessel would be able to replace two vessels and those ferry boats could then be placed into service as part of the marine branch of intermodal ports along Ohio’s coast line servicing Ohio, Michigan, Pennsylvania, New York and Canada. By investing a few million dollars in a new ferry boat, the door can be opened to cross lake ferry service, saving billions of dollars in road repairs and bridge construction from the current spending by the federal government. This is done by reducing the long haul trucks on the highways that cross into Canada, changing the service to shorter hauls by a truck and utilizing the natural resource of Lake Erie. This expansion would initially create 40 -100 new jobs with just the vessels that would be freed up by the construction of the one new vessel.

8. Controlling Public Entity: Kelleys Island Ferry Boat Lines Inc. is under the operating authority of the Public Utilities Commission of Ohio (PUCO). An annual report for the ferry boat operations is submitted to the PUCO each year as part of their oversight. Also as the controlling public entity, the PUCO oversees all rate structures and fares charged for passage, meeting the criteria outlined in 23 USC 129 (c)(4). All revenues derived from the fares for passage are solely applied to actual and necessary costs of operation, maintenance and repair, debt service, negotiated management fees, and for a reasonable rate of return to the private partner KIFBL.

9. Current and Future Traffic: Kelleys Island, Ohio is a popular tourist destination and has experienced tremendous growth in the past 15-20 years. It is the largest of the U.S. Lake Erie islands with natural beauty, family orientation, state park lands, private and public campgrounds and a sprinkle of night life mixed in. It is on the Lake Erie Coastal Trail and on the National Historic Register of Historic Places. The world’s largest examples of glacial grooves are found on Kelleys Island as well. Kelleys Island and the state park beach located on Kelleys Island were identified as one of the top ten of “America’s healthiest beach and lake getaways” in a 2009 CNN Health Magazine article. There are numerous festivals and events occurring throughout the season; Kelleys Island holds something for everyone. As people have discovered all that Kelleys Island has to offer, the word has spread. This is why it is a popular destination and retreat receiving visitors from all over the country and internationally, but this is also why KIFBL is feeling the strain of providing services to the year-round and summer population which has increased by over 200% since KIFBL began operations. With the increase in population and visitors brings the demand for expanded infrastructure and services. Currently, three to four ferry boats are needed to keep up with demands that have been placed on KIFBL. These demands not only are from the increased traffic associated with the residents and visitors traveling to Kelleys Island, but from the transport of supplies associated with increased demands for goods and services that are warranted by the increased population. Also an expansion in residential construction on Kelleys Island is occurring due to necessary infrastructure updates. KIFBL is carrying more construction equipment, trucks carrying stone and dirt, and semi trucks carrying modular houses than it ever has before. It is projected that the growth will not plateau for decades as this island has not realized its full development potential.

KIFBL provides service seven days a week approximately 17 hours a day, except in the off-season, when the service drops to approximately 10 – 11 hours a day. Ferry boat service is provided as long as Lake Erie is not covered in ice. The lake is normally open ten to eleven months a year. The current and future traffic for KIFBL consists of both commuter and recreational passengers, passenger vehicles, and all truck traffic from pickup trucks through semi trucks. These vehicles carry any and all supplies to Kelleys Island including, but not limited to, food for the grocery stores, restaurant and bar supplies, construction equipment and supplies, modular houses, all freight such as UPS, and fuel such as gasoline, diesel, heating oil and propane. All trash and recycled goods are removed from island via KIFBL. The State of Ohio has a popular State Park and Campground located on Kelleys Island. Also, a 4-H Camp and a Christian Camp are located on Kelleys Island as well. The current traffic for the Kelleys Island Ferry Boat Lines consists of 175,000 passengers and 60,000 vehicles. The five-year traffic projection is 325,000 passengers and 115,000 vehicles.

10. Proposed Work: The project is to construct one ferry boat and it is a stand-alone project. Once the vessel has been constructed, it may be immediately entered into service. The new ferry boat will be 160 feet in length, with a holding capacity of 35 vehicles and 400 passengers. This ferry boat will be built with U.S. steel and will utilize state of the art and “GREEN” technology whenever possible, from construction material and new paint technology, to solar arrays and scale-appropriate wind turbines. The solar arrays would be placed on the superstructure in the best location to capture the sun's rays, thus helping to operate the generators and other electrical systems in the vessel. Also, smaller wind turbines could be placed on the vessel to assist with the operation of the electrical systems as well. State of the art construction material and new paint technology also assist in energy efficiency. The new material reduces the overall weight of the vessel than material used 10 to 15 years ago. Since the overall weight of the vessel is lighter, it takes less energy to propel the vessel through the water, thus reducing fuel consumption.

The engines used to operate the new vessel are Tier 2 engines. Bio-diesel could be utilized in the new vessel as the engine manufacturer continues to warranty the engines for up to 20% bio-diesel consumption. Another consideration is for the use of hydrogen infused engines through retrofits. The hydrogen retrofits are not fully developed, but would be something that could be added to the vessel through a research and development project and then the usage could be continued once the technology is fully developed.

11. Total Project Cost: The cost of ferry boat construction is estimated at $6,000,000. Various components of the budget include shipyard usage and wages, purchase of U.S. produced steel used in the construction of the hull and superstructure, operational systems, electronics, engines and alternative energy components that would be integrated in the completion of the vessel. All administrative, engineering and marine architectual costs are not part of this request and are covered outside of the grant proceeds, though required construction oversight may be part of the request, if funding is available to assist in this area. The ferry boat would be delivered to Kelleys Island, Ohio terminal facility to be placed into service upon receipt.

12. Amount of Federal FBD Funds Requested (up to 80% of project cost): This request is for consideration of up to $2,800,000. It was indicated in the FY 2010 application that a request would be made during FY 2011 funding cycle in the event that an amount less than $3,000,000 was able to be awarded towards the project. The project received an award of $2,000,000 in FY 2010. .

13. Commitment of Other Funds: Kelleys Island Ferry Boat Lines has committed the additional funding necessary to construct the vessel.

14. Previous FBD Funding: This project received $2,000,000 award in FY 2010 funding cycle.

15. Future Funding Needs: No additional funding would be necessary to allow for the ferry boat to become operational on the existing route if the funding of $3,000,000 is received. The terminal facilities are in place to permit the usage of the vessel as soon as it has been constructed.

16. Project Purpose & Benefits: The purpose of the project is to construct a ferry boat for use on the sole vehicular/passenger ferry service between the mainland and Kelleys Island, Ohio. This service connects State Route 163 to State Route 575 as there are no bridges that connect Kelleys Island to the mainland. It is also not feasible in the foreseeable future to construct a bridge to Kelleys Island from the mainland due to the costs associated with it and the fact that the South Passage of Lake Erie, where the ferry boat crosses, is a shipping lane for lake freighters. A tunnel is not feasible either. Lake Erie is the shallowest of the Great Lakes and there is not sufficient water depth for freighters to pass above a tunnel between the mainland and Kelleys Island.

The new ferry boat will ease the pressure placed on KIFBL allowing demands to be better met, which permits the general public to experience an even greater level of service. The new ferry boat would be able to replace the need to have an extra two ferry boats running, saving money, for both the company and the customer, along with the benefit of easing pollution by reduced emissions from the vessels. This is due to how the new vessel is constructed, the type of engines used and the fact that fewer vessels are needed to do the same amount of work.

The construction of this Class C type of ferry boat also brings in added benefit as it is rated to travel through ice. The design of the ferry is that of a true double-ender with a two-drive propulsion system, so the vessel never has to back and spin around to get under way. The two-drive propulsion system enhances safety as lines are not typically required when docking. Thus, deckhands are not subjected to potential safety hazards as was the case on another ferry line when a deckhand had his foot instantly amputated due to a line entanglement accident.

The construction and operation of the one new ferry boat will create or retain between 40 - 100 jobs. The economic benefit for the need to run fewer vessels will be realized by the ferry boat company and will be able to pass the savings on to the customer. With the new vessel and the ability to provide improved services, there is also a ripple effect on the economic benefits. For instance, supply companies that provide goods and services to Kelleys Island’s businesses will receive economic benefit. For instance, there would not spend as long in lines waiting to catch a ferry boat to and from Kelleys Island. With the wait-time being reduced, supply trucks would be able to be back on the road for additional mainland deliveries. This benefit would also be realized by any construction company that would be supplying services to Kelleys Island as well.

The vessel construction would have economic development benefits in the larger picture of marine commerce and job creation as well. With the freeing of two vessels on the current route with the construction of one vessel, ferry services can expand into other markets and ventures on Lake Erie, creating additional jobs in the area. This includes expanding services as the marine branch of intermodal ports along Ohio’s coast line servicing Ohio, Michigan, Pennsylvania, New York and Canada. By investing a few million dollars to open the door to cross lake shipping, billions of dollars will be saved in road repairs and bridge construction from the current spending by the federal government by reducing the long haul trucks on the highways and across into Canada, changing the service to shorter hauls by a truck and utilizing the natural resource of Lake Erie. This would advance intermodal forms of transportation to best serve the country.

17. Project Administration: The ferry boat construction and engineering/naval architect oversight will be administered by the Ohio Department of Transportation along with KIFBL.

18. Project Schedule: The plans for the new vessel have been updated by marine architect and submitted to the US Coast Guard for approval. Since this is a ferry boat construction project, a categorical exclusion has been issued by ODOT during the environmental review process and there would not be any additional time necessary for environmental reviews as could be the case in other types of projects. The project is ready to begin as soon as an award is made. The funds would be obligated after official notice is received from Federal Highways and/or the Ohio Department of Transportation. This would take approximately 30 days. Once a contract has been entered into with the successful bidder, the ferry boat construction would take approximately one year. The anticipated timeframe for the vessel to be placed into service would be by March 31, 2013. It could be slightly earlier, but ice cover on Lake Erie would dictate the beginning of the service date.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download