Bay Ferries Yarmouth ferry carries 15,000 fewer passengers than Nova Star
New ferry between Yarmouth, N.S., and Portland, Maine, carried 35,551 passengers between June 15 and Oct. 1
Bay Ferries Ltd. carried about 15,000 fewer passengers in its first season operating the run between Nova Scotia and Maine than the Nova Star ferry did in 2015.
On Thursday, Bay Ferries said in a statement the new CAT ferry between Yarmouth, N.S., and Portland, Maine, carried 35,551 passengers between June 15 and Oct. 1.
That's 15,487 fewer than 2015, when its predecessor the Nova Star carried 51,038 passengers and still fell short of its goal of 80,000.
Bay Ferries said in a news release it's not surprised by its numbers and said they should grow as the service "gains traction."
'There's lots of work to do'
Mark MacDonald, president and CEO of the P.E.I.-headquartered company, said in an interview there have been challenges in launching the new ferry.
"Generally, we're happy with the way that the season went and happy with how the numbers went going into a year that had a lot of uncertainty around it in terms of new ship, new product, new operator and bankruptcy of the previous operator," he said.
Transportation Minister Geoff MacLellan told reporters Thursday that the province had a target of 60,000 passengers for this season, based on the Nova Star's first two years.
"There's lots of work to do, this isn't a celebration but we're moving in the right direction," he said.
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'Success' a relative term
The minister said "success" is defined but the tourism operators in the province, particularly in southwest Nova Scotia.
He said he's heard "very positive" things from operators.
MacLellan has reached out to Tourism Nova Scotia to put together an economic impact study to assess the benefits of the service on the province's economy.
He conceded the service may have been hurt by negative publicity, including Nova Star's bankruptcy earlier this year.
The new CAT ferry has a capacity to carry 866 passengers. The Nova Star technically had a capacity of 1,215, but Nova Star's CEO Mark Amundsen said in a 2015 interview the ship's actual capacity was closer to 700 passengers in order to have room for accommodations and vehicles.
'We've certainly got the right operator'
In Thursday's statement, Bay Ferries said it "anticipates" it will meet the financial projections provided to the province for its first year ending March 31.
"We've got the right vessel we've certainly got the right operator," said MacLellan. "The fact that they've released the information today that they are on budget for the 2016 season certainly is testament to their prowess and the efforts they made to ensure stability with this line."
The first two years of the Bay Ferries service is expected to cost the Nova Scotia government around $32 million.
MacDonald said Bay Ferries is working towards an annual operating budget of about $10 million.
"There is no question that when you come into an environment where the last company who did the business ended up in backruptcy and difficulty — that hurts," he said.
Bay Ferries sees 'potential to grow'
There's a 10-year agreement between the province and Bay Ferries. The government has also promised to cover any cash deficiencies the company may incur — if Bay Ferries loses money, those loses are reimbursed by taxpayers.
The province ended its relationship with Nova Star Cruises last season. The company received $39.5 million in subsidies from the provincial government over the two years it operated the ferry service. The ship had about 110,000 passengers during that period, short of its two-year goal of 180,000.
Bay Ferries said it lost four days of service this year due to unfit weather and sea conditions — two of which were due to tropical storm Hermine. The company said there were no delays or disruptions due to mechanical issues.