Canadian American Transportation Systems

Canadian American Transportation Systems LLC, commonly abbreviated as CATS, was a transportation company headquartered in Rochester, New York. It was created in the early 2000s by several upstate New York business leaders in response to the City of Rochester's effort to attract operators for a new international ferry route across Lake Ontario. The proposed service was intended to provide a direct connection between Rochester and Toronto for passengers and vehicles, complementing existing road, air, and rail links between the United States and Canada. To operate the route, CATS commissioned a high-speed catamaran from Austal Ships in Perth, Western Australia. The vessel was based on the Auto-Express 86 design but modified with a narrower beam so that it could pass through the locks of the St. Lawrence Seaway. Registered as Spirit of Ontario I, the vessel reached Rochester on April 27, 2004. It was more than 280 feet long and was designed to carry over 750 passengers and approximately 220 vehicles. Onboard amenities included bars, a restaurant, a movie theater, a children's play area, business-class seating, wireless internet access, and an arcade. CATS marketed the service under the consumer-facing name The Breeze. The name was selected through a public contest involving residents of Ontario and New York, with a lifetime boarding pass offered as the prize. Although the marketing name became widely associated with the ship, the vessel's legal registered name remained Spirit of Ontario I. The company also arranged for a passenger terminal in Rochester, while Scott Associates Architects was selected to design the international marine passenger terminal in Toronto's Inner Harbour. Daily service began on June 17, 2004, with crossings taking about two and a half hours. During the early summer, many trips were reported to be close to capacity, creating the appearance of strong initial demand. The route nevertheless faced substantial structural and operational costs. Because the vessel operated between two countries, CATS registered it under the flag of the Bahamas. This avoided some United States and Canadian tax exposure, but foreign registration meant that the ship had to use pilotage services that would not have been required for a vessel registered in either country. The pilotage expense was reported to be more than $6,000 per crossing. The business also encountered difficulties involving customs and immigration charges, the cost of terminal facilities in Toronto, service delays, and weaknesses in the underlying business plan. These pressures made the operation financially unsustainable. CATS ceased ferry operations on September 7, 2004, after only eleven weeks of service, and subsequently entered bankruptcy. Spirit of Ontario I remained docked in Rochester until a February 2005 bankruptcy auction. Rochester Ferry Company LLC, a subsidiary of the City of Rochester, acquired the vessel for $32 million. In April 2005, the city-related company selected Bay Ferries Great Lakes Limited to operate a successor service using the same vessel. That operation resumed on June 30, 2005, under the marketing name The Cat. CATS itself did not return to service.

Canadian American Transportation Systems LLC was established in the early 2000s by several business leaders in upstate New York after Rochester officials solicited proposals for an international ferry connection to Toronto. The initiative followed the construction of a marine passenger terminal by the City of Rochester and was designed to create a direct passenger and vehicle route across Lake Ontario. CATS ordered a high-speed catamaran from Austal Ships in Perth, Western Australia. The vessel used a modified Auto-Express 86 design. Its beam was altered to allow passage through the locks of the St. Lawrence Seaway, an important requirement for reaching the Great Lakes. The ship was registered as Spirit of Ontario I and arrived in Rochester on April 27, 2004. With a length of more than 280 feet, it could carry more than 750 passengers and about 220 cars. Its facilities included food and beverage service, a cinema, children's play space, business-class accommodation, wireless internet, and an arcade. The company conducted a naming contest among people in New York and Ontario to create a public-facing name for the route. The winning name, The Breeze, was used extensively in marketing, although it was not the vessel's registered name. Scott Associates Architects was selected to design the Toronto international marine passenger terminal in the city's Inner Harbour. Service began on June 17, 2004. The crossing took approximately two and a half hours, and the schedule included several trips per day. Initial demand was reportedly strong, with many mid-summer crossings operating at or near capacity. The apparent early success did not overcome the route's cost structure. CATS registered the vessel under the Bahamian flag, partly to avoid certain United States and Canadian taxes. Because the ship was foreign-registered, it was required to use pilotage services that domestic registration would have avoided. The pilotage cost was reported to exceed $6,000 per crossing. Additional problems involved customs and immigration charges, Toronto terminal fees, delays connected with the launch, and shortcomings in the business plan. CATS discontinued the service on September 7, 2004, after approximately eleven weeks. The company subsequently went bankrupt, leaving Spirit of Ontario I docked in Rochester. On February 28, 2005, Rochester Ferry Company LLC purchased the vessel at a bankruptcy auction for $32 million. The company was a subsidiary of the City of Rochester. In April 2005, it announced Bay Ferries Great Lakes Limited as the operator for a successor service. The vessel returned to service on June 30, 2005, marketed as The Cat. This later operation was separate from CATS, which remained defunct.

• 2005

  Vessel sold in bankruptcy proceedings

  [1]Canadian American Transportation Systemsen.wikipedia.org

  Rochester Ferry Company LLC acquired Spirit of Ontario I at auction on February 28.

• 2005

  Successor service resumes

  [1]Canadian American Transportation Systemsen.wikipedia.org

  Bay Ferries Great Lakes Limited resumed service with the vessel on June 30 under the name The Cat.

• 2004

  Spirit of Ontario I reaches Rochester

  [1]Canadian American Transportation Systemsen.wikipedia.org

  The Austal-built high-speed catamaran arrived in Rochester on April 27 in preparation for the cross-border ferry launch.

• 2004

  The Breeze launches

  [1]Canadian American Transportation Systemsen.wikipedia.org

  CATS commenced daily Rochester–Toronto passenger and vehicle ferry service on June 17.

• 2004

  Operations end

  [1]Canadian American Transportation Systemsen.wikipedia.org

  The company stopped the ferry service on September 7 after eleven weeks of operation.

A fast, premium-oriented cross-border lake ferry intended to connect Rochester and Toronto with passenger and vehicle service.

• International passenger and vehicle ferry service · 2004

  The Breeze

  The Breeze was CATS's public-facing brand for scheduled ferry crossings between Rochester, New York, and Toronto, Ontario. The service transported both passengers and automobiles across Lake Ontario, with crossings of approximately two and a half hours. Its positioning emphasized speed, convenience, and onboard amenities, including food and beverage service, entertainment, children's facilities, business-class seating, wireless internet, and an arcade.

• High-speed catamaran ferry · 2004

  Spirit of Ontario I

  Spirit of Ontario I was the vessel commissioned by CATS for its Lake Ontario route. It was a modified Auto-Express 86-type catamaran built by Austal Ships in Western Australia. The more than 280-foot vessel was configured to carry over 750 passengers and approximately 220 vehicles, and its dimensions were modified to permit transit through the St. Lawrence Seaway locks.

• 2004The Breeze naming contest

  United States · Canada

  CATS invited residents of Ontario and New York to propose a marketing name for its ferry operation. The winning entry was The Breeze, and the prize was a lifetime boarding pass.

  Outcome. The Breeze became the service's public brand, although the ship retained its registered name, Spirit of Ontario I.

  Source

• 2005

  Asset disposition through bankruptcyOther

  Background

  After CATS ceased operations and entered bankruptcy, Spirit of Ontario I remained docked in Rochester.

  Action taken

  Rochester Ferry Company LLC purchased the vessel at a bankruptcy auction and selected Bay Ferries Great Lakes Limited to operate it.

  Aftermath

  The vessel returned to the Rochester–Toronto market on June 30, 2005, under the successor brand The Cat, while CATS remained defunct.

  Vessel auction sale price. $32 million (February 28, 2005)

  Source

• 2004

  Register the ferry under the Bahamian flagStrategy

  Background

  CATS operated an international vessel between United States and Canadian ports and sought to limit exposure to United States and Canadian taxes.

  Action taken

  The company registered Spirit of Ontario I in the Bahamas. The vessel still had to meet United States Coast Guard and Canadian Coast Guard safety requirements.

  Aftermath

  Foreign registration required pilotage services that would not have been required for a United States- or Canadian-registered vessel. The associated cost was reported to exceed $6,000 per crossing and contributed to the route's financial difficulties.

  Pilotage cost per crossing. more than $6,000 (2004)

  Source

• 2004

  Launch The Breeze ferry serviceProduct launch

  Background

  Rochester and Toronto were seeking a direct international passenger and vehicle connection across Lake Ontario.

  Action taken

  CATS started daily service on June 17 using Spirit of Ontario I, with multiple approximately two-and-a-half-hour crossings each day.

  Aftermath

  Although early trips were often near capacity, the operation closed on September 7 after eleven weeks because of high operating costs, terminal and customs-related charges, delays, and an unsuccessful business plan.

  Source

• 2005

  Spirit of Ontario I is sold through bankruptcy auction[1]Canadian American Transportation Systemsen.wikipedia.org

  Bankruptcy · M&A

  Rochester Ferry Company LLC, a subsidiary of the City of Rochester, bought the vessel at a bankruptcy auction for $32 million and pursued a successor operator.

• 2004

  Spirit of Ontario I arrives in Rochester[1]Canadian American Transportation Systemsen.wikipedia.org

  Product launch

  The high-speed catamaran commissioned for the Rochester–Toronto route arrived in Rochester on April 27, 2004.

• 2004

  The Breeze ferry service begins Rochester–Toronto operations[1]Canadian American Transportation Systemsen.wikipedia.org

  Product launch

  CATS began daily international ferry service on June 17, 2004, using Spirit of Ontario I under the consumer brand The Breeze.

• 2004

  CATS suspends ferry operations after eleven weeks[1]Canadian American Transportation Systemsen.wikipedia.org

  Bankruptcy · Other

  The company ended the entire ferry operation on September 7, 2004, following high operating costs, terminal and customs-related charges, delays, and business-planning problems.

1. 1Canadian American Transportation Systemsen.wikipedia.org