Information provided for reference as supplied to senior officials at Transport Canada on . It has not been updated since that date.

Procurement of New Passenger Ferries

Location: Eastern Canada

Summary of Issue/Background

Eastern Canada Ferry Services

  • Transport Canada (TC) provides vessels and funding to private operators to support the delivery of three inter-provincial ferry services in Eastern Canada, between:
    • Îles-de-la-Madeleine, Quebec and Souris, Prince Edward Island;
    • Saint John, New Brunswick and Digby, Nova Scotia; and
    • Wood Islands, Prince Edward Island and Caribou, Nova Scotia.
  • In Budget 2019, the Government announced that it would procure two new vessels from a Canadian shipyard to replace the MV Madeleine and the MV Holiday Island, which are at the end of their lifecycles. It was also announced that TC will extend the agreements with the current ferry operators to March 31, 2022.
  • On May 22, 2019, the Government of Canada issued an Advance Contract Award Notice announcing its intention to award a contract for the construction of the two new ferries to Chantier Davie. On June 19, 2019, it was announced that the Government of Canada is entering into negotiations with Chantier Davie.
  • TC is in discussion with Chantier Davie regarding the detailed design and construction of the two new vessels. The MV Madeleine replacement is expected to be delivered within 48 months of contract award. Delivery of the MV Holiday Island replacement is expected 12 months later or within 60 months of contract award.
  • On November 14, 2019, the joint venture of Lengkeek Vessel Engineering/Knud E. Hansen was selected to provide technical marine advisory services to Transport Canada for the procurement of two new ferry vessels. The contractor will support the department throughout all phases of the project including drafting the technical statement of requirements for the new vessels, developing cost estimates, supporting contract negotiations with the shipyard and providing onsite oversight at the shipyard during vessel construction.

Marine Atlantic Incorporated

  • Marine Atlantic Incorporated (MAI) is a Crown corporation that fulfills Canada’s constitutional obligation to provide year-round ferry services between North Sydney, Nova Scotia, and Port aux Basques, Newfoundland and Labrador (NL). MAI also provides a non-constitutional summer service between North Sydney and Argentina, NL. As a Crown corporation, MAI is a distinct legal entity operating at arm’s length from the Government of Canada.
  • MAI owns three ferry terminals and operates a fleet of four ice-class ferry vessels, which allows for safe operations in the challenging weather conditions of the Gulf of St. Lawrence during the winter months.
  • In Budget 2019, the Government announced that it would support MAI’s fleet modernization through the procurement of a new vessel to replace the MV Leif Ericson, which is nearing the end of its lifecycle.
  • On July 17, 2019, MAI launched its procurement with the release of a Request for Qualifications (RFQ). After the closing of the RFQ posting on November 4, 2019, MAI will evaluate submissions and qualify shortlisted applicants to participate in a Request for Proposals (RFP) process. It is expected that MAI will launch the RFP in the winter of 2019-20, and that a successful bidder will likely be selected in late 2020/early 2021.