[Congressional Record Volume 143, Number 86 (Thursday, June 19, 1997)]
[Senate]
[Pages S6004-S6005]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE (for himself, Mr. Gorton, Mr. Kerry, Mrs. Murray, 
        and Mr. Breaux):
  S. 941. A bill to promote the utilization of marine ferry and high-
speed marine ferry services; to the Committee on Commerce, Science, and 
Transportation.


                      high-speed marine ferry act

  Mr. INOUYE. Mr. President, I rise today to introduce legislation, 
cosponsored by Senators Gorton, Kerry, Murray, and Breaux to promote 
the use of marine ferry and high-speed marine ferry services.
  The marine ferry system of the United States provides an invaluable 
component to the transportation requirements of our Nation. As a 
Senator from an island State, I appreciate the need for passenger/
vehicle ferry services. In general, marine ferries require minimal 
costs as compared to the costs of new infrastructure such as highways, 
bridges, and tunnels. In addition, marine ferries are one of the most 
environmentally friendly modes of transportation.
  In coastal urban centers, marine ferry service can provide low-cost, 
environmentally friendly transportation to areas suffering from 
congestion. In rural coastal areas, such as barrier islands, marine 
ferries have been utilized as the sole source of transportation to 
connect coastal communities to the mainland. While States with marine 
barriers such as rivers or lakes have utilized marine ferries as low-
cost alternatives to highway bridges or additional roadways. Marine 
ferries have also been used to provide transportation in areas 
devastated by natural disasters and floods. Ferries were used in the 
aftermath of the earthquakes in northern California to provide 
transportation across San Francisco Bay.
  States such as Washington, Alaska, North Carolina, and Delaware have 
invested, with great success, in State-run marine ferry services. While 
other States such as New York, New Jersey, and my own State of Hawaii, 
are exploring incentives to induce private ferry operations in order to 
fulfill certain transportation objectives. Private ferry operations and 
high-speed marine passenger vessels used for dinner cruises and tour 
excursions, have contributed to the tourism potential of certain areas 
as well.
  I am particularly hopeful that the Marine Ferry and High-Speed Marine 
Ferry Act will help us to fulfill our Nation's potential for high-speed 
marine technology. In the early 1970's, Boeing Marine pioneered the 
development and construction of commercial passenger hydrofoils capable 
of operating at 45 knots. Boeing built 25 hydrofoils for high-speed use 
on the Hong Kong-Macau route before licensing production to Kawasaki 
Heavy Industries of Japan in the early 1980's, and by 1989, only one 
high-speed marine passenger/vehicle ferry of significant size was in 
operation.
  The international and domestic high-speed marine passenger vessel 
market has recently seen a dramatic expansion, and currently over 60 
high-speed marine passenger/vehicle ferries are in service or under 
construction. Fast ferries, until recently, have been primarily used in 
short sea services on protected routes, but recent advances in design 
and materials have allowed for the construction of larger vessels 
capable of being operated on longer open sea routes. New technologies 
have also opened possibilities for high-speed cargo-carrying 
operations.
  The United States has benefited from a number of recent high-speed 
projects, and from the establishment of a shipyard specifically 
designed for high-speed marine passenger vessel construction. The 
Maritime Administration's ``1996 Outlook for the U.S. Shipbuilding and 
Repair Industry'' indicates:

       New orders for ferries should also continue to provide work 
     for the second-tier shipyards. The enactment of ISTEA 
     continues to provide a significant boost to new ferry 
     projects. In addition, MARAD has a Title XI application 
     pending for the construction of two passenger/vehicle ferries 
     for a foreign owner, valued at more than $171 million. Demand 
     will come from continued promotion of states of ferries for 
     use in their tourist industries, as well as in 
     transportation/commuting, as an alternative to building 
     infrastructure projects such as highways and bridges. The 
     recent award of a $181 million contract to Todd Seattle for 
     three 2,500-passenger ferries and the solicitation for 
     proposals for two additional 350-passenger ferries by the 
     State of Washington, is an added sign that the ferry industry 
     is strong. On the private sector side, there is a demand for 
     the deployment of high-speed, high-tech ferries in the 
     passenger excursion industry.

  The Marine Ferry and High-Speed Marine Ferry Act will build on 
previous enactments aimed at promoting marine ferry operations. The 
bill would reauthorize section 1064 of ISTEA, at levels consistent with 
past years, to allow State-run ferry programs to apply for Federal 
grants for the construction of ferries, and/or related ferry 
infrastructure. The bill would also initiate a new program to help 
provide loan guarantees for private marine ferry operators. A number of 
States have decided not to operate their own ferry vessels, but 
instead, have encouraged the private sector to establish marine ferry 
operations. The provision of loan guarantees to qualified applicants 
will allow private sector operators to contribute to legitimate public 
sector transportation needs by providing favorable financing through 
federally guaranteed loans.
  The bill would also require DOT to report on existing marine ferry 
operations and to make recommendations on areas that could benefit from 
future marine ferry operations, and directs DOT to meet with relevant 
State and local municipal planning agencies to discuss the marine ferry 
program. The bill also directs the Marine Board to study high-speed 
marine technologies, and potential utilization of such technology.
  I hope my colleagues can join in to continue our support of marine 
ferry operations. For a relatively small investment, we can leverage 
State and private operations to address our pressing infrastructure 
demands.

[[Page S6005]]



                          ____________________