WOODS HOLE, Mass. — The Steamship Authority could run out of funding by the end of May due to a decline in ridership, according to the ferry service’s general manager, Robert Davis.
COVID-19 travel restrictions have prevented people from going to and from Martha’s Vineyard and Nantucket, Davis alleged, causing an estimated $1 million loss in revenue per week.
Between March 17 and April 14, Davis reported a $2.99 million loss in revenue compared to 2019. The financial hit prompted the Steamship Authority to contact the governor’s office for assistance on Thursday.
“This hasn’t happened since 1962, that we’re checking at a deficit to the point that we’d be needing to seek state assistance, so this is all new territory to most of us here,” Davis said Saturday.
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Davis told Boston 25 News that even after cutting down the number of ferry’s in service and the number of trips they’re taking, the Steamship Authority is still coming in at a deficit. He said that more than 1400 trips, or 52%, have been canceled.
Ridership has also severely dwindled.
According to statistics released, passenger traffic is down 85%, vehicle traffic is down 79%, and truck traffic is down 64% compared to this period in 2019.
“We’re seeing a drastic decline in our ridership. We’re looking at about 15% of what we normally would be carrying in terms of passengers at this time of year,” Davis said. “There’s a distinct possibility that we could be looking at a $40-50 million deficit at the end of the year.”
Davis sent this letter to Governor Charlie Baker requesting financial help in order to make it into the month of June.
“We’ve heard that they’re working on it and acknowledged the receipt of our letter and are looking to see what measures they can take,” Davis said.
While the Steamship Authority is expected to receive nearly $10 million in financial assistance from the CARES Act in mid-June, Davis said that he believes it will be too late and will merely serve as a band-aid to a long-term problem.
In a board meeting this coming Tuesday, he said the Steamship Authority is hoping to get approval to request a line of credit from one of their banks in order to secure funding in the meantime.
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“We’re obviously concerned that we’re able to provide services to the islands,” Davis said. “There’s a lot of people that depend upon us.”
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