It looks as if a bold experiment in cross-lake transportation may be coming to an end, as a fast ferry that carries travellers between Toronto and northern New York state during the summer is losing its funding.

The City of Rochester bought the ferry, named the Spirit of Ontario, for $32 million US. But on Tuesday, Mayor Robert Duffy said he wants to sell it.

"I will not authorize the bonding of $11.5 million (US), to continue operation of the fast ferry," the Rochester Democrat and Chronicle said on its website. "The City of Rochester will no longer be in the ferry business."

Spirit of Ontario (CBC photo: Peter McCluskey)

The five-storey catamaran has been plagued by startup and financial problems almost from the start.

Its maiden voyage was delayed after an accident damaged the boat.

The first season, in 2004, was cut short by financial problems. The ferry sailed just 80 days before operator Canadian American Transportation Systems shut down with $1.7 million US in debt.

A major problem in covering costs is that the ferry is not licensed to carry trucks across the lake.

Already in debt to the tune of $2.5 million US, the City of Rochester is also on the hook for about $9 million US in expenses.

Duffy said he will ask Rochester city council to authorize transferring $9.5 million US from city reserves to cover expenses this year while looking for a buyer.

Duffy, who is just two weeks into a new mandate, is effectively shutting down the water link between the two cities.

"It stops the bleeding is really what it does," he said.

Mark MacDonald, president and CEO of Bay Ferries Great Lakes, the Prince Edward Island company that operated the service, released a statement on Tuesday night confirming the end of the run.

"This project involved enormous challenges from the outset, given its difficult previous history," said MacDonald. "We regret the decision taken by the City of Rochester but respect that decision."

Lisa Raitt, president and CEO of the Toronto Port Authority, expressed disappointment.

"It is unfortunate that the vessel suffered startup challenges in its first two seasons and was never able to realize its full potential, despite having handled over 250,000 passengers, 38,000 vehicles and achieving high levels of customer satisfaction," Raitt said in a statement.

Toronto Mayor David Miller called the move "a regrettable development.''