Steamship Authority's bond limit gets $50 million boost from Legislature

In finalizing the fiscal 2024 state budget Monday, the state Legislature raised the bond borrowing limit for the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority to $150 million.

The limit got a $50 million boost, a move that officials say could go a long way in helping the agency complete major capital projects, such as acquiring another vessel for its aging fleet.

Along with purchasing and converting another vessel for ferry use, electrification and constructing the new Woods Hole terminal are vital projects the Authority needs to complete, said state Sen. Julian Cyr, D-Truro, who filed the bill responsible for raising the bond limit.

“As the Steamship Authority is the lifeline to the Islands, this helps safeguard each of the Islands’ economic livelihoods,” Cyr said. “Hence, why we arrived at increasing the bond limit.”

The House voted to approve the budget earlier on Monday, and then sent it to the Senate, which sent it to Gov. Maura Healey’s office. Healey is expected to sign the budget within 10 days.

The Steamship Authority purchased three vessels

In 2022, the Steamship Authority purchased three identical vessels from marine services company Hornbeck Offshore Services, with the ultimate aim to upgrade and homogenize its fleet — whose vessels have an average age of 34 years old.

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Cyr said a fleet of identical vessels helps out with maintenance costs and operational processes.

“Part of the real challenge with the Steamship Authority’s operations and its fleet is that each of the boats are unique and different,” he said. “If you have a cancellation, especially on the freight boats, and you have to rebook someone on another boat, the configuration is different. It's a pretty intricate jigsaw puzzle.”

The bond limit was last raised in 2014, from $75 million to $100 million.

'Helpful' to have champions at the Statehouse

With terminals in Hyannis and Woods Hole, the Steamship Authority is a ferry service providing trips to and from the Cape and Islands for passengers as well as vehicles — cars to large freight-carrying trucks. Passenger ridership was around 2.9 million in 2022, according to a recent annual report.

The Massachusetts Legislature created the Steamship Authority in 1960 to provide for “adequate transportation of persons and necessaries of life for the Islands of Nantucket and Martha's Vineyard.”

More: Steamship Authority's new vessels named M/V Aquinnah and M/V Monomoy

The Authority operates mainly from money from its fare box, which includes passenger and vehicle ticket sales, with no money coming directly from the state.

Steamship Authority General Manager Robert Davis said more money will continue to be needed and other methods of funding, such as federal grants, are being sought out as well.

Without the bond limit increase, he said, the Authority would not have been able to even consider buying a fourth vessel.

“We appreciate all the attention that the delegation gave to this,” Davis said in reference to the bond limit increase. “It’s been helpful to have people up at the Statehouse championing it for us.”

Walker Armstrong reports on all things transportation and the Joint Base Cape Cod military base. Contact him at WArmstrong@gannett.com. Follow him on Twitter: @jd__walker

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This article originally appeared on Aberdeen News: $50 million bond borrowing boost will help Steamship Authority