Location: Atlantic Canada and Eastern Quebec
Key messages:
- Transport Canada (TC) understands the critical importance of ferry services to local communities and the economy in Eastern Canada, which are essential transportation links in the region.
- The Government of Canada supports three ferry services in Eastern Canada through TC’s Ferry Services Contribution Program, including service between:
- Wood Islands, Prince Edward Island and Caribou, Nova Scotia. This service is operated by Northumberland Ferries Limited (NFL) using the TC owned MV Confederation and the operator chartered MV Saaremaa to replace the former MV Holiday Island;
- Îles-de-la-Madeleine, Quebec and Souris, Prince Edward Island, operated by CTMA using the MV Madeleine II; and
- Saint John, New Brunswick and Digby, Nova Scotia operated by Bay Ferries Limited (BFL) using the MV Fundy Rose.
- Through this Program, TC ensures that federally owned ferry assets are part of a safe and reliable transportation system.
- Two new ferries to replace the MV Holiday Island and MV Madeleine are being designed and built at a Canadian shipyard (Chantier Davie Canada Inc). The new ferries will have diesel-electric hybrid propulsion systems with onboard energy storage. The first new ferry is expected to be delivered in fall 2028 at the earliest. The second vessel will be delivered approximately 12 months later.
- TC continues to work with the ferry operator to identify options for a longer-term interim replacement for the MV Holiday Island to ensure a two-vessel service during peak season on the Wood Islands, Prince Edward Island and Caribou, Nova Scotia route.
- The Government of Canada has earmarked additional funds in Budget 2023 to support the continued safe and reliable operation of ferry services in Eastern Canada.
Summary of Issue / Background:
- Through the Ferry Services Contribution Program, TC provides funding to private operators that supports inter-provincial ferry transportation in Atlantic Canada and Eastern Quebec. Through this Program, TC ensures that federally owned ferry assets are part of a safe and reliable transportation system.
- The vessels and terminals used to provide the services are owned by TC and are leased to the operators for a nominal amount.
- Budget 2019 announced 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.
- The MV Madeleine was removed from service and was replaced by the MV Madeleine II. The MV Holiday Island was removed from service in summer 2020 due to an onboard fire.
- The ferry operator chartered the MV Saaremaa for the remainder of the 2022 peak season to replace the MV Holiday Island on an immediate basis. The vessel is being chartered again in 2023 from approximately mid-July to mid-October.
- TC continues to work with the ferry operator to identify options for a longer-term interim replacement for the MV Holiday Island to ensure a two-vessel service during peak season until the permanent built in Canada ferry enters service.
- The new replacement ferries for the MV Holiday Island and MV Madeleine are currently in the design stage. They are expected to be delivered in 2028 and in 2029 respectively, based on the work to be completed to date and the project’s timelines.
- The new ferries will have diesel-electric hybrid propulsion systems with onboard energy storage systems (i.e., batteries) to significantly reduce greenhouse gas emissions, air pollutants, and underwater radiated noise compared to the existing fleet.
- On the West Coast, TC provides an annual grant to the Province of British Columbia, indexed to the Vancouver Consumer Price Index in support of BC Ferries.