- the native canadian

Brian Sharp
Staff writer

(March 18, 2006) � A newly formed company in England reportedly is negotiating to buy Rochester's high-speed ferry for service on the English Channel.

At least four separate media outlets in England and France linked Navmed Limited and the Rochester-controlled Spirit of Ontario in stories late this week. Navmed reportedly is interested in a ferry to run between Dover, England, and Boulogne, France. The ferry would be part of a three-ship operation to start in May between multiple ports.

Rochester spokesman and ferry board member Gary Walker said, however, that the city is not in final discussions with any company, and he left the validity of Navmed's claim in doubt.

What's at stake

Your money. The higher the sale price for the ferry, the less remaining debt will be assumed by the city to be repaid with taxpayer money. For previous stories about the ferry.

"We've got movement. We've got interest. We've got serious talks with persons interested in the ferry," Walker said. "But we've got no done deal yet. ... We haven't entered into the end-game negotiations."

Mayor Robert Duffy decided Jan. 10 to end the Rochester-to-Toronto service and sell the ship after the operation lost $10 million in 10 months. The city-run Rochester Ferry Co. was broke and manager Bay Ferries Great Lakes LLC covered $3.2 million in expenses. Debt from the ferry venture exceeds $40 million, including the expense of buying the ship. The vessel remains docked at the Port of Rochester.

Navmed and its financial backers plan to invest more than $52 million (U.S.) in a plan that includes two other high-speed ferries crossing between Dover and Calais, France, and possibly other ports, the media reports said. The previous Dover-to-Calais service shut down in November, citing financial losses. The Dover-to-Boulogne route would duplicate a service in operation since May 2004, according to the respective company Web sites.

Navmed, also called Navmed-Highspeedferries and based in Folkestone, England, did not respond to an e-mail Friday. (One can only wonder, 'Why not?') Attempts to locate a telephone number were unsuccessful.

Tom Richards, Rochester's corporation counsel, has said that he would not discuss details until a ferry deal is final.

City Councilman and ferry board President Benjamin Douglas also declined comment, saying the matter is "within the realm of whatever delicate negotiations are going on."

Should the ship be sold to a location outside the Great Lakes, it would be taken out through the St. Lawrence Seaway, which opens for the season Thursday. Seaway officials said the city has not contacted them about moving the ferry. (That would tend to indicate there may be no destination to move it to, no? As in, nobody's interested?)

Walker said the city has no specific timetable for the ferry. (Well, OK. But the payments are still due.)

BDSHARP@DemocratandChronicle.com

Brian Sharp
Staff writer

(March 22, 2006) � An overseas investor interested in Rochester's high-speed ferry said he is willing to pay more than the $30 million he offered for the ship earlier this month, but the city does not appear interested.

"As it looks like right now, they are not going to give it to us," John Paul Airs, CEO of Shikara Holdings LLC, said in a phone interview. "I think it's become too political now, and I think they're looking for a blue chip operation. We're a new company ... but you've got to start somewhere."

Shikara is the investment arm of Navmed Limited, based in Folkestone, England. How city officials view Navmed's bid for Rochester's Spirit of Ontario ferry is unclear. But the company's vocal interest mirrored in the foreign press has sparked a flurry of media attention here. Navmed plans a three-ship operation crossing the English Channel, with the Spirit of Ontario tagged for a route between Dover, England, and Boulogne, France.

What's at stake

Your money. The city needs to recoup as much out of the ferry venture as it can. The higher the sales price, the less the remaining debt assumed by the city that would be repaid with taxpayer money.

City officials have declined to comment on specific interest shown in the ferry. Mayor Robert Duffy said Tuesday that the ship has not been sold but the city continues to negotiate with several potential buyers. He has said the city is not negotiating with Navmed, which would be the ship operator, but it is unclear whether Shikara has a seat at the table.

"We are having a lot of activity," Duffy said. "We certainly have negotiations going on with a number of parties. ... I really can't put a timeline on it. The deal has not been finalized yet � any deal."

The city backed a $40 million loan last year and created Rochester Ferry Co., which bought the ship in February 2005 for $32 million. But ticket sales for the resurrected Rochester-to-Toronto service lagged and the venture lost $10 million in 10 months.

Duffy announced Jan. 10 that the city was pulling the plug and would sell the ship, which remains docked at the Port of Rochester.

Airs, who also is Navmed's CEO, said he signed and submitted a $30 million bid to the city more than 10 days ago to meet a city deadline but the city has yet to respond.

"We have never snubbed or directly not answered an offer from a serious buyer," city spokesman Gary Walker said, describing the city's negotiating efforts as professional, forthright and honest.

"But we can't really control how other folks or other entities characterize this."

Airs said he has "proven" to the city his company has $30 million available, and to Port of Dover officials that it has the equivalent of $54 million (U.S.). Shikara formed in April 2005 and gets its money from Middle Eastern investors, Airs said. Navmed formed last month.

He said the Spirit of Ontario is "like a pair of Italian shoes, handmade and a perfect fit."

"We would like to discuss our bid," said Airs, who has yet to inspect the ship but claims to have reviewed all pertinent documents and drawings. He planned to come see the ship once he was on solid footing with the city.

"We're waiting. I keep hearing they (Rochester officials) are going to write."

One broker who claims to have spoken with Duffy and Corporation Counsel Tom Richards says there should only be one qualification: "Money. M-O-N-E-Y," said ship broker Bill Mollard with Jacque Pierot Jr. & Sons in New York. Mollard said he last spoke with Richards on Feb. 2 but has not heard back. Selling the ship should take 30 to 60 days, he said.

"It isn't complicated. It's a piece of steel that's sitting on Lake Ontario," he said, adding that the ship's attributes and good condition would make for a quick sale but buyers must be able to deliver the money up front.

Overseas, Navmed is reportedly one of two potential operators � the other reportedly a company called Fidentia � vying to start up a new service at the already busy Dover port. Keith Southey, spokesman for the Port of Dover, said discussions have been ongoing for some time with unresolved details that include berthing slots to dock the ships.

"When this sale is done, and we're counting the money ... we'll be willing to share every step of the negotiations with the public and the media," Walker said. (Uh-huh. This sounds vaguely familiar.)

"But we're not going to share that information in the middle of negotiations. It's too important ... we want to get the most we can for this boat."

BDSHARP@DemocratandChronicle.com

Includes reporting by staff writer James Goodman.

(March 23, 2006) � The lady is attractive and available and the suitors are lining up � calling, writing, some with more ardor than others. But she'd be smart to stay cool and collected amid the attention � a rush into romance often ends badly.

The lady in this case isn't a lady but the Spirit of Ontario, Rochester's sleek ferry now out of the lake-crossing business. Given the quality and relative newness of the vessel � a catamaran designed to hold nearly 800 � the city has been wise thus far to assess the interest, and bank accounts, of potential buyers but not to leap too soon.

The goal, obviously, is to get the best price possible from a buyer who has resources beyond a convincing spiel. An England-based company has made an impressive bid but later complained that the city wasn't sufficiently appreciative of its generous offer.

The bidder apparently is feeling rather snubbed. Better a snubbed feeling or two among bidders than a snookered feeling in Rochester, having sold the ship to a business that can't make its payments.

The deal-making can't go on too long, however. Even a docked ferry brings costs, and the goal should be to sell the ship before the city has to dip again into the taxpayers' pockets. Obviously, too, buyers are looking to land a ferry before the summer season unfolds.

But Mayor Robert Duffy has a team � former Rochester Gas and Electric Corp. CEO Tom Richards stands out in this regard � experienced and able enough to find real love among the pretenders. (Oh my, yes! The local utility extortionist has a sparkling track record at looking out for the best interests of the consumer.)