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Published August 2, 2010

The advancement of the modestly priced transportation choices between North America, Central America and South America that I have described will do more to improve the Western Hemisphere cohesion and stability than any other single thing that could be done.
Just for a moment, picture yourself with a small 3 ship ferry operation at the point in history when relations normalize with Cuba. –serious profits and expansion- Also envision the evolution of a cohesive Hemispheric logistics system with central distribution points in Cuba and ferries of different sizes and purposes steaming off like a compass star. It would permit immediate transportation systems to develop using current and older equipment, trailers, rail cars etc. It would also require that countries get along better to work out equipment interchanges, uniform vehicle licensing, safety requirements, etc. What I have been discussing could conceivably be the basis of stability in our part of the world.
As President Regan said, “There he goes again”. As much as I try to distance myself and retire, the passion still exists.
I have tried to start with a concept so obvious that the uninitiated can see the potential. It seems that compared to Mediterranean Europe, there are fewer, in the U.S. regular conventional business financial world that understand the commercial risks and how to allay them. The result has been that it is very difficult to find startup financing for even a single ship operation in conventional places.
The maritime practices of Flag of convenience, a separate corporation for ownership of each vessel to be leased to an operator and a third to manage the vessel operations can easily confuse many investors.
We need a facility to put this all in perspective and demonstrate what the Europeans have been depending on for years, only here we have developing economies all around a central pond and we are just starting the integration Europe is completing.
The purpose of these writings is to suggest a beginning that will demonstrate the “what could be” to potential customers, with the least initial expenditure that will result in a clamor for the additional services. This will make it easier to work out port facilities, priority of docking, and how the authorities deal with the service. We even have some difficult situations in our laws and practices.
Several of the issues were first identified in our first introduction of the concept in my paper entitled A Ferry Service Between Texas and Honduras, presented to, The Society Of Naval Architects And Marine Engineers, at the 1997 “Transportation Operations, Management and Economics Symposium” from May 14-15, 1997.
“The government of Honduras initially classified the vessel as a freight carrier, as they had no classification for a ferry. This resulted in the requirement to pay higher port charges than would be required had the classification been as a passenger type vessel. After about four weeks the government operated port authorities identified the service as a tourist passenger vessel and reduced the charges accordingly.
The U.S. Federal Maritime Commission was petitioned for an exemption from rate filing due to our operation as a ferry; carrying passengers and their personal conveyances and commercial conveyances, not “cargo”.
Subsequently relief was achieved when the FMC determined that any accompanied conveyance would not be considered cargo and would not need a rate filing.
The United States still has yet to recognize this kind of operation in the Gulf of Mexico as a ferry, even though special laws were written to define ferry operations exclusively as they exist between the U.S. and Canada in the States of Washington and Maine.
Homeland Security still views the ferry as a cargo carrier and because of the commercial interest in the ferry as solution to many low cost transportation problems, issued a document entitled “Guidelines fo Ferry Operations”.
Of particular interest is how Homeland Security deals with “Ferry” vessels.
Taken from Customs law and regulation:
(1) The term “ferry” means any vessel which is being used—
(A) to provide transportation only between places that are no more than 300 miles apart, and
(B) to transport only—
(i) passengers, or
(ii) vehicles, or railroad cars, which are being used, or have been used, in transporting passengers or goods.
Exceptions
(A) Except as provided in subsection (a)(5)(B) of this section, no fee may be charged under subsection (a) of this section for customs services provided in connection with—
(i) the arrival of any passenger whose journey— (I) originated in—
(aa) Canada, (bb) Mexico, (cc) a territory or possession of the United States, or (dd) any adjacent island (within the meaning of section 1101 (b)(5) of title 8), or
(II) originated in the United States and was limited to—
(aa) Canada, (bb) Mexico, (cc) territories and possessions of the United States, and ..(dd) such adjacent islands;
(ii) the arrival of any railroad car the journey of which originates and terminates in the same country, but only if no passengers board or disembark from the train and no cargo is loaded or unloaded from such car while the car is within any country other than the country in which such car originates and terminates;
(iii) the arrival of a ferry, except for a ferry whose operations begin on or after August 1, 1999, and that operates south of 27 degrees latitude and east of 89 degrees longitude; or
It would definitely appear that a special legal definition was granted by Congress to “Ferry Operations” between the U.S. and Canada from the states of Washington and Maine at the expense of Texas and other southern States especially as to receive benefits the arrival must comply with the certain map coordinates above.
The change in the definition of a “ferry “ to “to provide transportation only between places that are no more than 1200 miles apart, and” would provide for a more equitable definition and encourage closer trade relationships that can only improve national relationships as well.
I feel that it is clear that the use of the concept of the “Ferry vessel” to develop the Pan American Maritime Highway could be an so important in returning the economies to cycles of growth and enhanced national security for the entire hemisphere that we have allocated three columns to it.
I look forward to seeing a comfortable “Ferry” trip to Central America in the near future.