Going Coastal

The tens of thousands of tourists who visit the Statue of Liberty and Ellis Island every day could be stuck gazing at them from Battery Park this fall, as tense negotiations between two ferry operators could threaten transportation to the islands.The ferry company often criticized for charging steeps fares and offering only the bare bones of customer amenities in return, Circle Line, last month lost a contract with the National Park Service worth $350 million over 10 years to provide ferry service to the tourist attractions. The lame duck water transit company is required by contract to sell its vessels to the new operator, Hornblower Yachts Inc., but a wrangle over the value of the ferry fleet is threatening to delay Hornblower’s October 1 takeover date, and could leave neither ferry company operating this fall.

In a lawsuit Circle Line filed against the National Park Service last year when the contract was put out for public bid, the company reportedly claimed that its vessels were worth significantly more than the Parks Department estimate of about $19 million. With the end of its contract on the horizon, Circle Line could again protest what it claims is a low figure for the value of its assets. Circle Line would not comment on plans regarding possible future litigation.

“We fully expect that they’re going to come to terms on the transfer of the vessels,” a spokesman for the National Park Service, Darren Boch, said. There is no contingency plan in place, however, if an agreement is not reached, he said. The contract start date could be changed under certain circumstances, he said.

Hornblower, meanwhile, must also secure congressional approval of the contract in the next two months, and locate and lease dock space in the New York harbor. The company, which also provides ferry service to Alcatraz Island in the San Francisco Bay, plans to install plasma television screens on its ferries to provide customers with historical background on the sites they’re visiting.

“Circle Line is a company that has used every trick in the trade to gain an advantage to keep the contract for that long,” Rep. Anthony Weiner said in an interview. The company hired a former employee of the National Park Service, and used the uncertainty surrounding the attacks of September 11, 2001, to gain an extension to their contract, Mr. Weiner said. “Getting a concession doesn’t mean you have a lifetime right to it,” he said. Circle Line has held what is considered to be one of the most profitable ferry concessions in the country for 54 years.

By ANNIE KARNI

NY Sun