2016 Labrador ferry timeline 'a little ambitious,' says David Brazil

The Newfoundland and Labrador government says it is now unlikely that new ferry services for Labrador will be in place by 2016. 

Transportation and Works Minister David Brazil said a lot has changed since the request for proposals was made in late 2013.

Brazil said government might not be able to afford the new ferry system envisioned at that time, given the current oil-driven deficit.

The RFP calls for a single contractor to provide freight and passenger services for both the north coast of Labrador and the Strait of Belle Isle.

What I can say — and I reiterate again — there are no losses of any contract at this point.- Transportation and Works Minister David Brazil

Speaking on Labrador Morning on Thursday, Brazil said it's unclear what shape the new service will take. 

"The 2016 timeframe is probably a little ambitious right now, I'll be honest. We are still hopeful we can improve the service. Once we make a final decision, we will sit down with the proponent or proponents that may be involved with this process, and then determine how we move things forward," said Brazil. 

On Wednesday, Clint Davis, chair of the Nunatsiavut Group of Companies, said that his company was not being given "further consideration" in the process.

However, Brazil said Thursday that no final decision has been made, adding that Nunatsiavut Marine was still in the running for the contract.

"What I can confirm, there was a short list. Three proponents originally put in proposals. And we had a fairness monitor, we brought in a company from outside, to ensure that every component was evaluated," said Brazil. 

"At the end of the process, we determined there were two particular companies that we wanted to further explore what they had proposed, as to the type of service they would offer. And that's the process we move forward on. That outlined that Nunatsiavut Marine was not part of those two, but it didn't exclude them from the overall RFP decision at the end of the day."

Fiscal ability

Brazil said to provide the best return to taxpayers, government may have to go back to the drawing board to find a way "to fit its fiscal ability."

The 2016 timeframe is probably a little ambitious right now, I'll be honest.- Transportation and Works Minister David Brazil

"Everybody's aware of our fiscal situation right now. Everything's on the table to be reviewed. In some cases, it may be too expensive to do a certain process that we wanted to do," he said.

"We haven't made those final decisions. What it does say is that we're really evaluating what was in the RFP ask, and what the proponents put forward. We're still going through the whole process, and the process does have an impact on our fiscal ability right now, with the financial situation the province is in, and all that's being taken into account as we review the RFP process."

Glimmer of hope for Nunatsiavut Marine? 

Nunatsiavut Marine president Peter Adams told CBC Wednesday that his company "is still holding onto hope" that the decision can be turned around.

Brazil said government wants to sit down in the next week and talk with company officials. 

"What I can say — and I reiterate again — there are no losses of any contract at this point. This is still an ongoing process, and I don't want to put out any alarms to anybody for any reason," he said.

"What we are doing is evaluating exactly what service we can provide, under our fiscal realities and under the assets that are available, and under the proponents who bid on it," he said.

"We're going to continue to evaluate that. Over the next couple of weeks, we will have a decision and that will include discussions with Peter Adams and with the other proponents."

While Brazil would not confirm is who the other two companies are.

However, sources tell CBC that the Woodward Group of Companies, which currently operates the Strait of Belle Isle ferry service, and Oceanex, a St. John's-based marine company that ships about half of all good to the province, made the short list.