Deputy Minister's appearance at the Committee of the Whole (CoW) House of Commons, June 05, 2025

24. Interim Replacement for the MV Holiday Island

LOCATION: Central Nova, Nova Scotia / Cardigan, Prince Edward Island

ISSUE/SOURCE: Eastern Canada Ferry Services

DATE: May 2025

SUGGESTED RESPONSES

  • The Government of Canada is committed to ensuring a two-vessel ferry service in peak season between Wood Islands, Prince Edward Island, and Caribou, Nova Scotia, that meets traffic demand.
  • In summer 2022, the MV Holiday Island was removed from service due to an onboard fire.
  • In November 2023, the Government of Canada announced that it would acquire the MV Fanafjord as an interim replacement for the former MV Holiday Island. The vessel has since been renamed the MV Northumberland.
  • The MV Northumberland is currently on standby and is expected to enter service on June 16, 2025, when the two-vessel peak season begins. This vessel will help ensure safe and reliable service that meets traffic demand.
  • In February 2025, the Government of Canada launched a process to select a contractor to conduct an operational review of Northumberland Ferries in view of recent service disruptions. The review will focus on three areas: maintenance of Transport Canada’s vessels, the operator’s safety management system, and the operator’s risk management practices.
  • The objective of the review is to ensure compliance with regulations and best practices and identify areas where improvement may be required. The final report is expected in summer 2025.

IF PRESSED

  • Pre-construction activities are progressing, and preliminary design is expected to be completed in Summer 2025.
  • The timelines for the Government of Canada’s program of work with Chantier Davie, including the new ferry, are being discussed and will be confirmed once construction contracts are in place.

BACKGROUND INFORMATION

  • Through the Ferry Services Contribution Program, Transport Canada 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.
  • Budget 2019 announced that the Government of Canada would procure two new vessels from a Canadian shipyard to replace the MV Madeleine and the MV Holiday Island as both ferries were at the end of their useful lives.
  • On July 22, 2022, there was an engine fire on board the MV Holiday Island. The vessel was damaged beyond repair and the ferry operator chartered the MV Saaremaa for the remainder of the season. The MV Holiday Island has been disposed of in an environmentally conscious manner.
  • On August 23, 2024, the Government of Canada published an Advance Contract Award Notice to signal its intention to purchase the MV Fanafjord to serve as an interim replacement for the MV Holiday Island until the new replacement ferry is completed. The Advance Contract Award Notice allowed other interested suppliers 15 days to submit a statement of capabilities demonstrating they met Transport Canada’s requirements.
    • On November 16, 2023, the Government of Canada announced that it would be acquiring the MV Fanafjord as an interim replacement for the MV Holiday Island. The vessel was subsequently renamed the MV Northumberland. The total cost of the contract, including key spare parts, was $42.7M.
    • On January 26, 2025, the vessel arrived in Canada. It was berthed in Pictou, Nova Scotia, over the winter where additional refit work was undertaken.
    • With regard to the operational review of Northumberland Ferries, a contract was awarded to Altis Recruitment. The total value of the contract is expected to be in the range of $107,000.