Star Island Ferry

What was the decision?
Why was it necessary?
What does it mean for ISSCO customers and the community?
What does it mean for Star Island customers and staff?
History of ISSCO and the Star Island Ferry

What was the decision?

“When you come to a fork in the road, take it” .~ Yogi Berra ~

Dear Friends:

Making a business decision based on the facts should be a simple process, but more often then not this is not the case particularly when history and tradition are involved. When I informed Star Island management and Shoals Marine Lab management last spring of my decision not to renew the ferry contract this season, it was a very difficult decision to make. But, it had become a necessary business decision. Over the past several years factors had been accumulating that were making being the ferry more challenging and cost prohibitive for us, Star Island and all our passengers. Considering the emotions attached to such an historic decision, and out of respect for relationships that have been built over the past 20 years, I thought it might be helpful to further explain the processes behind the decision. And, although logistics will change for those needing ferry service to Star Island, many things will not. I sincerely feel change, while not always welcome, does lends itself to positive possibilities, opportunities and new relationships for everyone.

I would like to thank the US Coast Guard, the NH Port Authority, the Star Island Corporation and all of our guests past and current for all your support.

Best wishes for a great summer!

Warm Regards,

Robin Whittaker, Owner

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Why Was It Necessary? 

Factors Supporting the Decision

There was a lot more to being the Star Island Ferry then most people are aware of. The difference between the Isles of Shoals Steamship Co (ISSCO) ferry role and that of other ferry operators is that since Star Island is a privately owned island, therefore, ISSCO was ineligibility for city, state or federal transportation subsidies that other ferry services rely on. While revenues were generated from the purchase of roundtrip tickets by the Island 's Conference guests, this revenue alone did not cover the costs of the required ferry runs necessary to sustain Star Island 's operation or cover the costs of the access fee charged by Star Island. As a result, the ferry service had been subsidized by other revenues - predominately by the general public/tourist.

While there are always uncontrollable factors in any business, businesses must do their best to try to control as many factors as possible. But when the basic business principals of supply and demand are not being met, and controllable factors are not being controlled, then it becomes a simple fact of affordability. Affordability is the main factor behind the decision to discontinue the ferry contract. The Isles of Shoals Steamship Co. could simply no longer afford to be the ferry, and neither could Star Island or our passengers.

Factors Leading to the Decision

Revenue Streams supporting the ferry service – (non guaranteed and inconsistent based on the economic and emotional environment, and weather conditions)

• Ticket Purchases

1. Hotel conference guests
2. Guests visiting Island conference guests
3. Staff and guests going to the marine lab
4. Students going to the marine lab
5. ISSCO generated sightseeing ridership
• Walkabout – created by ISSCo
• Stopover – “island day tripper"
• Afternoon sightseeing passengers (non-disembarking)

• Other Revenue Streams

1. None

Uncontrollable Factors

• The unforgettable date of 9/11 forced necessary and uncontrollable changes which resulted in increased operational expenses and reduced revenues.

1. Insurance costs
2. Homeland Security costs
3. Reduced revenue from decreased conference, marine lab and tourist attendance

• Weather – the necessity to operate to deliver needed water and supplies to support the island when no revenue was generated to cover the cost of the trip.

1. Poor weather = no tickets sales. No revenue = ferry runs at a loss
2. Extended poor weather = unrecoverable revenues = substantial run losses

Controllable Factors that became uncontrolled resulting in less revenues to support the ferry service

• Required reduced ferry fares for Island conference guests and lab attendees.

• Greater reduced ferry fare for family and friends of Island staff and lab attendee

• No ferry fares for island staff, vendors and contractor

• Marine lab using their new boat to transport students instead of ferry

• The addition of a required sizable access fee paid to Star by ISSCo for exclusive island access for day tripper

• Lack of exclusive access resulting in reduced ferry usage

1. Island advertised public to visit via their own boats
2. Other commercial operators were permitted to bring visitors to Island for evening “Walkabouts” - a Tour created by ISSCo
3. “Non-Profit” day camp was permitted to use their own boats to do day visits to the Island instead of using the ferry

• No financial compensation for loading and transporting supplies to the Island.

• (Two trips per day including 5,000 gallons of drinking water, food, linens, and operating supplies.) Amount of supplies needed increased over the years as the Conference Center expanded its capacity resulting in increased ferry labor costs.

• Increased requests for reduced or free ferry passage and/or supply services from a variety of entities. It appeared a common assumption grew that since “we were going anyway” we could afford to accommodate these requests.

End Results: Lack of affordability.

There is a point where rate increases reduce rider ship.

There is a point where increased demands on staff forces customer service to suffer.

There is a point where change must occur.

Conclusion: Change is not always easy. But with change comes new opportunities and new partnerships. It is important to acknowledge that Star Island has been simultaneously up against some very tough operating and regulatory challenges as well. Therefore, it is hoped that the outcome of this decision, results in increased affordability, customer service and satisfaction, and benefits for all.

For current information about the Star Island Conference Center and ferry services, please contact the Star Island Corporation www.starisland.org 603-430-7262.

Homeland Security

It is important to clarify that Homeland Security and our United States Coast Guard did not force this change upon us. However, it was indeed a final determinate in making a needed decision that had been growing for a while. I would like to acknowledge the amount of hard work and assistance that the local Coast Guard provided us while we worked through Homeland Security requirements. I commend them for their perseverance, patience and willingness to help us. I must also commend the hard working efforts and patience of my staff, the Star Island staff and all our guests as well during this time. It certainly was not an easy process.

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What does it mean for ISSCO customers and the community?

We are excited about changes for the upcoming season. I sincerely feel change, while not always welcome, does lend itself to positive possibilities, opportunities and new relationships for everyone. I truly embrace these changes, as we can now focus even more than ever on the quality of our product and customer service.

We are pleased to assure you that the Isles of Shoals Steamship Co. continues it's commitment of giving back to the community. We will continue our complimentary community cruises for Children's Day and the United Ways Day of Caring, and we will continue our cruise donations to hundreds of New England non-profit fundraising programs. Additionally, we have expanded our “Dedication to Education” Fieldtrips series that now align state curriculum requirements with new on board interactive activities, and we continue to offer our F.R.E.E. (Fundraising for Educational Experiences) program. We have also expanded our Special Addition Lighthouse Cruise Series that will help support local associations who are working hard to save our area lighthouses.

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What does it mean for Star Island customers and staff?

Although logistics will change, please be assured that the Star Island staff has been working diligently with area passenger vessels to ensure your Star Island experience remains unchanged: For additional information contact:

Star Island Corporation www.starisland.org 603-430-7262.

Shoals Marine Lab www.sml.cornell.edu 607-255-3717.

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History of ISSCo and the Star Island Ferry

Isles of Shoals Steamship Company history

Star Island Ferry history

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