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Local News

Local passenger boats respond to high fuel costs

Surcharges, other measures being put in place

By DAN SCHNEIDER, DMG Writer
POSTED: June 10, 2008

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HOUGHTON — Local passenger boat services are taking various approaches to dealing with continuing high fuel prices.

Rates are up on the U.S. National Park Service’s Ranger III ferry service to Isle Royale and the Keweenaw Star sightseeing boat while the Isle Royale Queen IV out of Copper Harbor has put in place a $4.50 fuel surcharge for adult passengers.

“This is the first time we’ve had to do that and we reset it every 15 days,” Isle Royale Queen IV captain/owner Don Kilpela Sr. said. “So far it’s been very nominal but we have no idea where it’s going to go.”

The Ranger III increased one-way fares from $56 last year to $60 this year. Freight rates per 100 pounds increased from $8.80 to $9.

The price of a cruise on the Keweenaw Star went from $20 last year to $22 this year.

“We tried not to do too much, we don’t want to put them into sticker shock,” Keweenaw Star owner Kraig Funkey said.

Kilpela said his fuel costs increased significantly since last year.

“We burn about 420 gallons a day and our fuel went up $1.80 a gallon since a year ago,” he said.

Ranger III Captain Bill Hanrahan said fuel has gotten more expensive since the Ranger’s 2008 season started, going from $3.85 per gallon in April to $4.25 per gallon as of Friday. The National Park Service buys the Ranger III’s fuel by the tank truck load.

Kilpela said the federal government approves the passenger rates on the Queen IV and also approved the surcharge.

“We were authorized by the government to add it, but not to make money on it,” he said.

He said the surcharge is not a profit-boosting measure.

“It’s not a windfall for us ... this is survival,” he said.

Isle Royale National Park superintendent Phyllis Green said her staff is working through the process of putting a fuel surcharge in place for the Ranger III.

Both the Keweenaw Star and the Ranger III have taken additional measures beyond price adjustments.

“We had to cut back on a few of our cruises,” Funkey said. “I won’t go out unless we have at least 25 people on board.”

Hanrahan said he is taking extra care in manipulating the Ranger III’s ballast.

“I try to get it trimmed out as much as possible to even keel, so the bow’s maybe 3 inches higher than the stern,” he said.

This maximizes the efficiency of the boats movement through the water.

Hanrahan shuts down one of the Ranger III’s two diesel electric generators when the vessel is on open water.

He tries to keep the boat’s RPM levels at maximum fuel efficiency, as well.

Funkey said the Keweenaw Star is doing several promotions this summer to try to boost passenger numbers.

He is also hopeful the Star will see additional customers as fuel prices impact local recreational boaters.

“Because of the high fuel prices, they might not be able to go out and use their boat, but for $22 they can go out and enjoy a ride with us for two and a half hours,” he said.



Dan Schneider can be reached at dschneider@mininggazette.com
 
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