LOCATION: Eastern Canada
Issue: Eastern Canada Ferry Services
Date: November 29, 2022
Suggested Responses
- Budget 2019 announced that the Government would procure two new ferries to replace the MV Madeleine and MV Holiday Island. In summer 2019, the Government of Canada announced that Chantier Davie Canada Inc. would be responsible for designing and constructing the new ferries.
- Pre-construction project activities are progressing. The shipyard is undertaking processes to select major machinery, including the propulsion systems for both vessels.
- The new vessels will be equipped with hybrid electric propulsion systems designed to significantly reduce greenhouse gas emissions, air pollutants and underwater noise compared to the existing fleet.
- The Preliminary Design for the MV Holiday Island replacement is expected to be completed in Spring 2023 and the MV Jean Lapierre in Summer 2023. The first vessel is expected to be in service in 2028 and the second in 2029.
BACKGROUND INFORMATION
- Through the Ferry Services Contribution Program, TC provides funding to private operators to support three inter-provincial ferry services in Eastern Canada, including service between: (i) Wood Islands, Prince Edward Island (PEI) and Caribou, Nova Scotia (NS); (ii) Îles-de-la-Madeleine, Quebec (QC) and Souris, Prince Edward Island (PEI); (iii) Saint John, New Brunswick (NB) and Digby, Nova Scotia (NS).
- The vessels and terminals used to provide the services are owned by TC and are leased to the operators for a nominal amount.
- In Budget 2019, the Government announced that it would procure two ferries to replace the MV Madeleine, which operated between Quebec and Prince Edward Island, and the MV Holiday Island, which was used to provide service between Prince Edward Island and Nova Scotia before it was destroyed by a fire in summer 2022.
- Following a successful Advance Contract Award Notice (ACAN) process, the Government of Canada announced in June 2019, that it would enter into negotiations with Chantier Davie Canada Inc. for the construction of the new ferries.
- The ferries project has been structured in three phases:
- Phase 1: Completion of the Preliminary Designs and Class C cost estimates for the new vessels;
- Phase 2: Basic Design and Long Lead Items Contract(s); and
- Phase 3 - Build Contract.