PORT TOWNSEND — The off-and-on prospect of passenger ferry service between Port Townsend and Seattle has been floated once again, this time by Port of Port Townsend leaders.

The port is likely to apply for a federal transportation grant appropriation through U.S. Sen. Patty Murray’s office, Port Executive Director Larry Crockett said.

Murray may ask for $1 million

The staff is seriously considering asking for at least $1 million to subsidize a public/private ferry service venture for a two-year trial.

Crockett told the port commissioners Wednesday that he proposes the port buy a used passenger ferry — he was talking to an Alaskan tribe that wants to sell one — that would then be leased to a private operator selected through a bidding process.

“They are very interested in making this happen,” Crockett said of Murray’s representatives in discussing grants from about $350 million the federal government has available for transportation-related projects.

The funding could be used for up-front expenses and for subsidizing service.

Both passenger ferry operators on the North Olympic Peninsula, Victoria Express’ president Jack Harmon, and Pete Hanke, whose family operates Puget Sound Express whale watching tours, expressed interest in such a venture, but both wondered if it was economically feasible.

“Passenger ferry service is not a particularly good business proposition,” Hanke said, his family having tried it three times since the late 1980s.

“But it’s definitely good to talk about a public-private partnership.”

Harmon said his company, which has long ferried between Port Angeles, Victoria, and San Juan Islands, was always trying to think “out of the box.”

But he wondered how government could adequately pay for such transportation costs, given current budget constraints and economic conditions.

Even Crockett voiced some skepticism, saying success would largely rest with commuters, tourists and marketing the service to the Seattle side of Puget Sound.

Enough demand?

“I still have my concerns if there is really that much demand in our community,” Crockett said.

As proposed, the Port Townsend ferry would make stops in Kingston en route to Seattle and upon return.

The port of Kingston is developing its own service to Seattle through a $3.5 million federal grant that agency received two years ago.

Round-trip fares could be as high as $20 for commuter round trips and $30 for tourists to make passenger ferry service pay for itself, Crockett said.

The port executive said the Northwest Maritime Center has expressed interest in getting Seattle-area visitors to its new campus at Point Hudson.

The service also might be useful for bed-and-breakfast operators, those involved in agricultural tourism and wineries.

Thompson: Albatross

Port Commissioner Dave Thompson, a long-time shipwright, said he doubted such as operation would be successful, joking that the ferry should be named Albatross.

Commissioner Leif Erickson, who works in the yacht-building business, said $1 million might buy a “pretty thin” passenger vessel.

Port Deputy Director Jim Pivarnik said the grant application would be accompanied by letters of support from city of Port Townsend, Jefferson County and other state and congressional lawmakers.

“I think it’s important that we move forward,” Pivarnik said.

Port Townsend-Seattle passenger ferry service has been tried for short stints since the late 1980s.

The Port Townsend Chamber of Commerce board in January 2009, unable to locate a charter boat operation, indefinitely tabled proposed Port Townsend-Seattle passenger ferry-only service for extended weekends during peak summer tourist season.

That ended the proposal that former chamber manager Tim Caldwell had long promoted.

Puget Sound Energy had extended the chamber a $15,000 grant, but PSE officials said it could be used for other tourism-related promotions.

During a Puget Sound Ferry Coalition meeting in May 2008, Caldwell told an audience of Puget Sound regional leaders discussing passenger-only ferry operations on the region’s waterways that the Port Townsend chamber had $100,000 and was “willing to wager it all” to launch passenger-only ferry service between the Port Townsend and Seattle.

Caldwell then said a consultant recommended that Port Townsend be included in the program as a recreational route for passenger ferry service.

Transportation funding for state passenger ferry service has fallen off significantly since state voters in 1999 approved Initiative 695, limiting car tab fees to a flat $30 fee.

Still, passenger ferry interest is growing regionally and Washington State Ferries has proposed to state lawmakers a plan giving Puget Sound counties the go-ahead to provide passenger ferry service while the state focuses on building up to four new car ferries, including two for the Port Townsend-Keystone route.

King County has formed a passenger-only ferry district to operate the West Seattle Water Taxi, the Vashon Island-Seattle foot ferry and demonstration routes on Puget Sound and Lake Washington.

The Cascadia Center launched the Puget Sound Passenger Ferry Coalition nearly five years ago with the aim of developing alliances to expand passenger-only ferry service on the Puget Sound and Lake Washington.

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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.