Kingston Ferry Faces Challenges, But Stays Afloat

by Susie Oh - The Kitsap Sun

May 24, 2005

The passenger-only ferry between Kingston and Seattle has a lot going for it. The commute is quick, the boat comfortable and the food convenient. Crew members greet regulars by name, refill coffee cups and hand out mints.

But like any startup, Aqua Express, the name of the ferry and the company that runs it, faces a host of challenges. Empty seats on the boat and high fuel costs cut into revenues. Existing riders want expanded service and potential riders are holding out until the service is more established. In June, the number of daily round-trips will be cut from five to three.

Still, officials are quick to assure the public that the foot ferry is here to stay.

"I'm trying to figure out what it is that people want," said Brian Grantham, general manager of Aqua Express. "We'll make it work."

Community members are banking on that commitment after years of waiting for service to Seattle.

"I want to make sure they stay in business," said Marietta Szubski, who takes Aqua Express several times a week with her 9-month-old daughter. "I know they're working hard and they've made such a difference to us."

Commuter Molly Stacy said the state ferry makes people feel like cattle compared to Aqua Express.

"My husband and I both do this and we're much happier people," she said.

Aqua Express costs more than the state ferry, but it's worth it, said Joe Kane, a Seattle firefighter who lives in Kingston.

"The difference between private and public sector is customer service," he said.

Aqua Express hopes to draw more riders away from the Bainbridge-Seattle and Kingston-Edmonds state-run ferries. The state ferry costs $5.70 per round trip. Aqua Express is $5.25 each way, or $10.50 per round trip. Lower parking costs partially offset that difference for Bainbridge commuters because it is $2.50 to $6 cheaper to park in Kingston for a day.

The state ferries have not experienced a visible loss of riders since Aqua Express began service, said Washington State Ferries spokeswoman Susan Harris. A few hundred riders a day would not even be felt by the Bainbridge-Seattle run, which shuttles 7,000 to 8,000 people back and forth each day, she said.

The number of Aqua Express riders has grown over the past four months, but slowly. There were 190 round-trip passengers per day in March, up from 122 in January.

Potential riders are skeptical of the 4-month-old service.

"People want to know we're viable before they switch, but we can't prove that until they ride," Grantham said.

Grantham said the ferry schedule is key to getting more riders. He's searching for that magic combination of departure and arrival times that will give him the 500 passengers a day he needs to get out of the red.

"We can sustain a loss for a couple of years, but not at this rate," he said.

One asset to Aqua Express is its partnership with Kitsap Transit, Grantham said.

Aqua Express has paid for all its infrastructure and startup costs so far, but Kitsap Transit will eventually funnel state and federal funds to the company to allow it to purchase additional boats, said Richard Hayes, director of Kitsap Transit.

The agency is testing new low-wake boats that could cut the commute time between Kingston and Seattle by 5 to 10 minutes. It could purchase one of the boats for Aqua Express to help increase service by fall of 2007.

Kitsap Transit will also eventually pay Aqua Express back for improvements made to the dock at Kingston. Most of the dock is owned by the Port of Kingston, but Aqua Express paid $750,000 to extend it and outfit it for the passenger-only service. Public ownership of the ferry dock makes sense because Kitsap Transit could lease it to other ferry operators interested in other runs from Kingston, Hayes said.

The arrangement has raised some eyebrows, but Hayes thinks the public/private model is a good choice. "If you can get excellent service with low-level public support why not?" he said.

With another boat Aqua Express would be able to expand its service and offer riders more options.

But for now, the company is cutting back, not adding service. Aqua Express will run three daily three round-trips starting June 6, instead of five. Grantham said the changes are a result of a ridership survey and an effort to better accommodate worker schedules and coordinate with connecting transportation service on both sides of the water.

It's also about being more efficient. The change saves $1,000 in fuel and eliminates one run counter to the commute when the boat is nearly deserted.

But the new schedule is already drawing complaints, both from commuters concerned about elimination of the 6:20 p.m. run from Seattle, and from occasional users who thing the morning runs are too early to attract day-trippers.

There is mixed reaction to the ferry's effect on economic development in Kingston, a desired by-product for many business owners.

The ferry is part of the reason for an increase in real estate asking prices, said Gary Henry, owner of Shamrock Realty in Kingston. But while sellers are optimistic, potential buyers appear to be taking a wait-and-see attitude for now.

"The key at this point is the public's perception that indeed the foot ferry is here to stay," he said. "When that becomes locked in place, we'll see quite an impact on pricing. It could be even more expensive than it is now around here."

Downtown Kingston businesses were hoping for additional traffic from the new service. But the traffic hasn't generated many new customers yet.

Debbie Dunehew of Sweet Pea Cottage, a home and garden boutique, had big hopes for the foot ferry, but business has been so slow she'll be closing up shop and moving to Poulsbo.

Susan Rodgers, owner of Design Connection and Cleo's Landing, said she is also disappointed that the foot ferry hasn't had much of an effect on business, but she's upbeat.

"I believe things are going to be changing, it's just going to take some time," she said.

Fast Ferry Prospectus (Kingston-Seattle service)

Target population: Estimated 50,000 within North Kitsap School District; 239,500 in Kitsap County.

Kitsap County median household income: $49,676

Number of commuters: 20,000 people commute to work outside Kitsap County

Median North Kitsap home price: $242,000

Aqua Express ridership: Averaged 122 round-trip passengers per day in January. Averaged 190 passengers a day in March. The company wants an average of 500 passengers per day.

Partnership with Kitsap Transit: Aqua Express purchased the boat, gave it an overhaul, got access to a backup boat and made improvements to the fishing pier at the Port of Kingston for $3 million. Kitsap Transit will pay Aqua Express back about $750,000 for the fishing pier improvements and add to its ferry fleet in the next two years.

Sources: Kitsap Transit, Puget Sound Regional Council, Kitsap Trends Report, State of Washington Office of Financial Management, Northwest Multiple Listing Service

Who is Aqua Express: The company is an equal partnership of Clipper Navigation of Seattle, Argosy Cruises of Seattle, Nichols Brothers Boat Builders of Whidbey Island and Four Seasons Marine Services of Alaska.

Employees: 11

Business: Aqua Express runs the Kingston-Seattle ferry and Everett-Whidbey ferry for military personnel. It was one of two private companies to submit a proposal to serve riders between Southworth and downtown Seattle, but that has been put on hold as the state studies its options.

Web site: www.aqua-express.com

Schedule (Monday-Friday):

The revised Aqua Express schedule will be effective June 6. Kitsap Transit bus schedules will be adjusted to coincide with new departure and arrival times.

Depart Kingston: 5:15 a.m., 7 a.m., 4:35 p.m.

Depart Seattle: 6:05 a.m., 3:45 p.m., 5:30 p.m.

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