New Maritime ferries, operators, possible in Transport Canada remake of service

HALIFAX — The federal government is proposing long-term contracts with private operators to provide ferry services linking the three Maritime provinces and the Magdalene Islands.

Transport Canada says companies could be asked to bid on contracts that are up to 20 years long and provide their own vessels.

There are three routes under review: between Wood Islands, P.E.I., and Caribou, N.S.; between Souris, P.E.I., and the Magdalene Islands in Quebec; and between Digby, N.S., and Saint John, N.B.

The federal department outlined its plans and posted an invitation for requests for information on Friday morning.

The routes are currently serviced by private firms chartering Transport Canada-owned vessels, often on one-year, renewable contracts.

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Mark MacDonald, chief executive of Charlottetown-based Northumberland Ferries Ltd., said the plan makes sense because it would allow firms to plan for the long term.

Northumberland operates the Nova Scotia-New Brunswick and the P.E.I.-Nova Scotia routes. 

“We’ve ended up operating under a series of contracts of varying duration and often the renewals have taken place one day before the next operating season,” he said. “It’s not a structure that fosters long-term planning and … good business.”

The new system could lead to the purchase of newer ferries, said MacDonald, adding that the plan suggests operators purchase new vessels or vessels under 10 years old.

“By putting in place a longer term commitment, it’s a more bankable commitment which gives the operator the chance to buy new and better assets,” said MacDonald.

If the new system is adopted, there would be a transition period, with Ottawa continuing to own ships for several years as the ferry operators looked for new ships.

However, the newest of the federal ships — the 16-year-old MV Fundy Rose operating between Saint John and Digby — might be sold to one of the operators if the plans proceed.

The 24-year-old MV Confederation and the 46-year-old Holiday Island, which was out of service for much of last summer for repairs, have been used on the P.E.I.-Nova Scotia route.

The repairs and the reliance on a single ferry prompted Premier Wade MacLauchlan to argued the service is essential during the Island’s tourism season.

The federal government plans to collect reaction to the proposal until the end of July, and then announce its next steps.

The most recent federal budget says Ottawa will provide $278 million over five years to operate the ferry services.

The proposal for a revamped service calls for a continuation of the ferries being repaired and maintained in Canadian shipyards.

Michael Tutton, The Canadian Press