MIAMI BEACH, Fla. — A new Miami Beach Office of Inspector General report concludes that a taxpayer-subsidized ferry service launched last year between South Beach and downtown Miami never should have been approved ― and collapsed after just 21 days due to a lack of oversight, due diligence and competitive bidding.
The 68-page report investigates the failed Poseidon Ferry operation, a project city leaders said would ease traffic congestion and provide a reliable commuter option across Biscayne Bay. Instead, the service was plagued by mechanical breakdowns, canceled trips, and low ridership before shutting down less than a month after launch.
According to the OIG report, the city entered into a $600,000 agreement to subsidize Poseidon Ferry’s operations without conducting basic checks typically required to protect public funds.
“The OIG found that the City entered into a $600,000 agreement with Poseidon without conducting any formal due diligence on the company’s financial stability, operational capacity, or service history,” the report states.
Poseidon Ferry launched service in June 2024 amid optimism from operators and riders. At the time, supporters described the ferry as a much-needed transportation alternative for Miami.
However, the inspector general found that the contract with Poseidon and its owner, Jonathan Silvia, was never put out to competitive bid. Then-Commissioner, now-Mayor Steven Meiner warned against the approach, arguing the city should open the project to competition. Meiner was the only commissioner to vote against the agreement.
By waiving competitive bidding, the report found, key safeguards were bypassed. The inspector general determined that city officials failed to conduct background checks, financial reviews, or feasibility studies before approving the contract.
Specifically, the report found that no background check was conducted on Silvia, no review was performed of Poseidon’s prior failed private ventures between 2020 and 2022, and no verification was conducted of Poseidon’s vessel ownership, maintenance history, or staffing capacity.
The inspector general also noted that Poseidon ultimately leased a vessel from another water taxi company that did not meet the city’s requirements. The agreement did not require inspection of the vessel before service began.
“Jonathan Silvia clearly knew, and the City should have known, that before launching the ferry, the operational success of Poseidon Ferry was highly questionable,” the report states.
Operational problems surfaced almost immediately. Within ten days of launching, Poseidon experienced a five-day service disruption. Additional breakdowns followed in August, and by August 20, 2024, the ferry had suspended operations indefinitely. The city officially terminated the agreement on September 16, 2024, issuing a notice of default to Poseidon under the contract’s failure-to-operate provision.
The inspector general also addressed the justification offered by commissioners who supported the no-bid contract. The report states that supporters repeatedly argued a competitive bidding process would take “months” and that the city needed a ferry service up and running quickly. However, the Inspector General found that the no-bid process still took approximately a year to complete, undermining claims that bypassing bidding saved time.
The report concludes by calling for reforms, including mandatory due diligence requirements even when contracts are approved without competitive bidding, warning that bypassing institutional safeguards exposes the city to waste, mismanagement, and reputational harm.
Meiner issued a statement to Local 10 News following this article’s publication.
“For several years I’ve been working on an initiative to establish a FREE water transit corridor for Miami Beach. This vision is becoming a reality as Miami Beach is set to launch a new free water taxi service next month,” he said. “I was not a fan of the Poseidon Ferry initiative and voted against bringing it to Miami Beach. I believed the Poseidon Ferry plan would not succeed for a number of reasons, including its cost.”
Local 10 News also reached out to Silvia for comment, but had not received a response as of publication.
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