TRAN Appearance: Main Estimates 2023-2024 and Supplementary Estimates (C) 2022-2023

16. New Ferries for Transport Canada

LOCATION: Eastern Canada

Issue: Eastern Canada Ferry Services

Date: April 18, 2023

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 announced that Chantier Davie Canada Inc. would be responsible for designing and constructing the new ferries.
  • Pre-construction project activities are progressing and are expected to be completed by Spring 2024. Presently, the shipyard is undertaking processes to select major machinery, including the hybrid electric propulsion systems for both vessels, which will significantly reduce emissions, pollutants and underwater noise.
  • Preliminary Design of the MV Holiday Island replacement is expected to be completed in Fall 2023 and the MV Jean Lapierre in Winter 2024. The first vessel is expected to be in service in Fall 2028 and the second vessel in Fall 2029.

If pressed on interim replacement for MV Holiday Island:

  • Transport Canada is working with the ferry operator, Northumberland Ferries, to identify options for an interim replacement for the MV Holiday Island for the 2023 operating season and beyond.

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  and Caribou, Nova Scotia; (ii) Îles-de-la-Madeleine, Quebec and Souris, Prince Edward Island; and (iii) Saint John, New Brunswick and Digby, Nova Scotia. 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. Following a successful Advance Contract Award Notice (ACAN) process, the Government 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 estimate for the new vessels (expected to be completed in Winter 2024);

                  Phase 2: Basic Design and Long Lead Items Contract (expected in Spring 2024 and to be completed in Summer 2025); and

                  Phase 3: Build Contract (Fall 2025).

  • The first vessel is expected to be in service in Fall 2028 and the second vessel in Fall 2029. The precise timelines remain to be confirmed with the shipyard.