About 10 years ago, the City of Rochester invested in a fast ferry service between that city and Toronto. The service ran into cost overruns, fuel fees it couldn’t afford, and maintenance issues almost immediately. Per the Wikipedia article, these problems doomed the service from day 1:
Slow progress by the Toronto Port Authority in constructing a permanent ferry terminal in Toronto. The delays in getting even temporary terminal facilities built in Toronto during the spring of 2004 was another reason for forcing a delay in starting the service until mid-June.
CATS felt that it was being charged excessive Canadian customs and immigration costs. U.S. port of entry services were being provided in Rochester at no cost to CATS whereas Canadian port of entry services had to be completely covered by the company, resulting in a hidden charge on each ticket price.
CATS blamed U.S. customs for not giving approval for the Spirit of Ontario I to carry freight trucks and express cargo, claiming that this altered the original business plan.
CATS endured criticism from both nations for a decision to have Spirit of Ontario I registered under the flag of Bahamas, a flag of convenience nation, allegedly for taxation purposes. CATS was able to do this since the vessel was operating in an international service; additionally, since the Spirit of Ontario I was a foreign-built vessel, CATS would have had to pay significant penalties were it to register the vessel in either Canada or the U.S. (particularly the U.S., given the domestic-content restrictions of the Jones Act).
Because of the foreign flag registry for Spirit of Ontario I, CATS was required to pay for pilotage services on every crossing (approx. $6000 per crossing). Canadian and U.S. registered vessels are exempt from requiring the services of pilots while navigating on the Great Lakes.
A last-ditch attempt to have a professional ferry company run the service didn’t work, and the ship was sold in 2006. The crossing took just over 2 hours at high speeds – significantly less than the approximately 4 hour drive around the lake.
Now? The ferry is running between Aarhus and Kalundborg in Denmark, after a 5-year stint running service between Tarifa, Spain and Tangier, Morocco.
Here’s the current route:
The boat today:
And the Spanish route:
It made the crossing from Europe to Africa in 35 minutes.