TRAN March 21, 2024, Briefing on Infrastructure in Canada

23. Supporting Eastern Ferries

New Ferries for Transport Canada

Location: Eastern Canada

Issue: Eastern Canada Ferry Services / TRAN

Date: March 2024

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 preliminary designs are expected to be completed in summer 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.
  • The first vessel is expected to be in service in Fall 2028 and the second vessel in Fall 2029.

Background Information

  • Through the Ferry Services Contribution Program, Transport Canada (TC) provides funding to private operators to support three interprovincial 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 Transport Canada 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 estimates for the new vessels;

Phase 2: Basic Design and Long Lead Items Contract(s); and

Phase 3: Build Contract.