In a move that shocked waterfront regulars, the National Park Service awarded a 10-year contract to provide ferry services to Alcatraz to a division of Hornblower Cruises & Events.
“Alcatraz,” said one observer, who declined to be identified, “is the single most lucrative contract on San Francisco Bay.”
Underdog Contender Gets 10 Years
By Guy Span
Published: October, 2005
In a move that shocked waterfront regulars, the National Park Service awarded a 10-year contract to provide ferry services to Alcatraz to a division of Hornblower Cruises & Events.
There were three competing bidders for the contract and Blue & Gold Fleet, the current operator and contract operator for a number of local ferry services, was considered the favorite. Blue & Gold Fleet had a number of advantages, including the ownership of sufficient vessels and the employed personnel, to provide the service.
Blue & Gold Fleet, along with Red & White Fleet, its smaller competitor and Alcatraz contract rival, both own landing areas in Fisherman’s Wharf. Hornblower, a relative newcomer to the Bay Area, will have to invest in both vessels and a landing area to provide the Alcatraz service.
"It’s a perfect match with our capabilities," said Terry MacRae, CEO of Hornblower Cruises & Events in a press release. "We hope to incorporate some exciting new elements into the Alcatraz experience."
Whatever Hornblower accomplishes with their new contract, they have already succeeded in changing the face of Bay Area ferry services, by suddenly adding a new contender.
Back in the dark ages, after the last ferry ran from Richmond to San Rafael, there was a brief time with no ferry service on San Francisco Bay. Herb Caen, the celebrated columnist for the San Francisco Chronicle, lamented their passing with eloquence. But shortly thereafter, in the early 1960’s, the Crowley Company’s tour service (Red & White Fleet) started a new ferry from San Francisco to Tiburon, which grew into a commuter service. Then, Golden Gate Transit District started service from Sausalito.
Over the objections of the Golden Gate Transit District, which had started a profitable ferry, Red & White muscled its way into Sausalito, and was now operating two ferry lines. Fast-forward to the Loma Prieta earthquake in 1989, Red & White employed all its vessels to return stranded commuters for free to the East bay, when the bridge collapsed.
Under emergency contracts, Red & White Fleet operated ferry service to Richmond, Berkeley and Alameda/Oakland. Ridership was huge. In the absence of a bridge, the only practical route into San Francisco from the Eastshore Empire was ferry or BART. Then as the bridge opened, ferry ridership dwindled and one by one, the emergency ferry routes were abandoned. But one remained, servicing Alameda and Oakland. With a fanatical following of loyal riders, the City of Alameda agreed to seek funding to continue this line. And Red & White Fleet got the contract.
A few years later, plucky little Blue & Gold Fleet, then a three-tour-boat company, bid for the Alameda contract and won. Riders were shocked that a company with only three, slow, tour boats could win this contract. Yet, the man in charge, Roger Murphy, pulled it off with style, and went on to provide an unmatched record of on-time performance and customer satisfaction.
Then, the tiny Blue & Gold Fleet bought its much bigger rival, Red & White Fleet, and in odd symmetry, spun off the three old, slow boats as the tour competitor. So, the Red & White Fleet of today still bears its Crowley attachments, but is actually the residue of the once mighty Red & White Fleet, which, at one time, controlled all the Ferry routes on the Bay – including the lucrative Alcatraz contract.
With Blue & Gold Fleet the dominant contract ferry operator, a little upstart dinner and charter boat operator, Hornblower Cruises and Events, dared to challenge them for the Alameda ferry contract. Hornblower, working with Roger Murphy, then in exile from Blue & Gold, came close to winning the contract, but the city caved into pressure from the Inland Boatman’s Union and awarded the contract back to Blue & Gold.
In fact, the Murphy Group made a second attempt to bid for the Alameda contract several years later with similar results. Thus, until today, Blue & Gold has remained the top dog in ferry services, running Alameda/Oakland, Sausalito, Tiburon, Vallejo, Alcatraz and seasonal services to Angel Island. That’s why industry observers were shocked when they learned that the Alcatraz ferry contract had been awarded to Hornblower. "Alcatraz," said one observer, who declined to be identified, "is the single most lucrative contract on San Francisco Bay."
He went on to note that Hornblower would have significant start-up expenses, including vessels (perhaps five) and a new landing area near Fisherman’s Wharf. While Hornblower refused to comment further, industry insiders speculate the new landing could be near Pier 29 or 33, which is fairly close to Fisherman’s Wharf. Otherwise, a negotiated landing would be either at Red & White Fleet’s dock or at Blue & Gold Fleet’s Pier 41 facility. To date, Hornblower has apparently not negotiated landing rights.
Hornblower, according to industry comments, is a non-union operation and this also changes the face of the working waterfront, assuming Hornblower continues this practice. Otherwise, the two unions of choice would be Masters, Mates and Pilots (MM&P) or the current Alcatraz contract holder, the Inland Boatman’s Union (IBU). The IBU did not wish to comment at press time. Neither did Blue & Gold, nor Hornblower, outside of a press release.
While the National Park Service has awarded the contract, there apparently is a 100-day "objection period," which must run before the award is official. In the meantime, Hornblower has inalterably changed the face of ferry services on San Francisco Bay.
