N.L. government looking for ways to save money on provincial ferry services
'The time has come where we need to seriously take look at the ferry services,' says transportation minister
The Newfoundland and Labrador government is asking for suggestions on how to save money on costly ferry services.
The province is doing what is known as "market sounding" — sharing information about how the system works and what it costs, with the purpose of pushing some of the expense to outside investors, according to a media release Monday.
Transportation Minister Elvis Loveless told CBC News Tuesday "the time has come where we need to seriously take a look at the ferry services," including costs and more efficient ways of delivering the service.
The idea of offloading ferry expenses falls in line with recommendations made in the Green report issued in May by the premier's economic recovery team.
The operating cost of provincial ferries between April 2020 and March 2021 was just over $79 million, which includes vessel operations such as crew, fuel and supplies, vessel refits, insurance and emergency air service. Wharf and terminal upgrades, vessel acquisitions and administration costs are not included.
The provincial fleet consists of eight provincially owned and operated vessels and seven privately owned contracted vessels.
The report said the populations of most communities that require ferry access are declining, and projections suggest a moderate to high decline in population over the next five years. With that, passenger volume on provincial ferries is also on the decline.
The report said vessels are operating, on average, at 80 per cent below capacity, and in the last three years more than 10 per cent of trips were made without any passengers. Some ferry routes exceeded 20 per cent of trips without a passenger on board.
"A more efficient and cost-effective model is needed," says the report.
Haven't hit the 'panic button' on increased privatization: Loveless
Loveless said he hopes communities served by ferries will voice their concerns and offer suggestions. He said he hasn't hit the "panic button" but said he has been approached by private companies interested in providing ferry service.
"If we're looking at private, whatever the service may be, we still have to provide it and it has to be cost-efficient," said Loveless. "Because we want to provide an efficient service for the people that are using them, but also at the end of the day we have to keep in mind I have to be responsible to all taxpayers in Newfoundland and Labrador."
Fogo Island Mayor Andrew Shea knows just how important the ferry service is to communities in the province. The MV Veteran shuttled 119,900 passengers and 66,000 vehicles to and from the island last year — the second-busiest ferry route in the province, behind only Bell Island.
Shea said town council has decided it will take part in the market sounding, as the community wants to make sure that if there are changes coming they won't impede the flow of traffic.
Shea said sweeping cuts or changes aren't the solution and every ferry should be looked at individually.
"When you look at, overall, what it's putting into the economy, it's worth it.... I think this is what they have to look at. They've got to look at each individual ferry system and say, 'This is the way it's going to be.'"
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With files from Newfoundland Morning