Marine Atlantic has released its annual general report for the fiscal year covering April 1, 2017 to March 31, 2018. Among the highlights are the following:
• Transported approximately 329,000 passengers.
• Transported approximately 123,000 passenger vehicles.
• Transported approximately 92,000 commercial vehicles.
• Third consecutive year of passenger traffic growth.
• The Corporation generated $110.3 million in revenue.
• Total operating cost was $254.1 million.
• The subsidy provided by the Government of Canada was $143.6 million.
• Marine Atlantic achieved an overall 67 per cent cost recovery, falling within the targeted range as directed by the Government of Canada.
The growth in passenger traffic was modest, rising to 328,594 from the previous year’s total of 326,796. The number of passenger vehicles also posted a corresponding growth, but commercial transportation dipped slightly from 94,459 to 91,396.
Coupled with a reduction in gains, the overall revenues for the year were $0.7 million less than initially projected. Overall the Crown corporation posted a reduction in gains of $0.1 million as opposed to its $3.8 million increase the previous fiscal year, which was a result of selling its Bar Harbour location to the State of Maine for $3.9 million.
The rising cost of fuel and the switch to a more expensive fuel along with the transition of the MV Blue Puttees and the MV Highlanders to the comply with a mandated reduction in Sulphur emissions also played a factor.
Fuel surcharges have impacted passenger rates in the past, and as fuel and operating costs continue to climb it stands to reason passenger rates will as well. In addition to promotional discounts during peak travel months, Marine Atlantic has also announced additional work to be completed on a new pricing campaign to offer customers greater options and flexibility, though the exact details of the plan are not outlined in this report.
The report also outlines plans for completing and planned upgrades at both its Channel-Port aux Basques and North Sydney ferry terminals. Among the action items highlighted are:
• The planned new administration building to consolidate Port aux Basques operations under one roof.
• Upgrades to toll plaza and ticket booth at the Port aux Basques location; North Sydney upgrades have been completed.
• Upgraded mooring system to automated grip-based system designed to improve safety and decrease passenger offload time.
• Upgrades completed on the marshalling yard and parking lot, and the concrete pad, designed to prevent damage to commercial customer trailers.
• New infrastructure upgrades installed on cell towers in Southwestern N.L. and Cape Breton to increase wi-fi connectivity.
• Continued shuttle service to Scott’s Cove Park in Port aux Basques for ferry passengers.
Port aux Basques council still focused on reducing Marine Atlantic federal cost recovery
Port aux Basques Councillor Jim Lane attended the Marine Atlantic annual general meeting in St. John’s on behalf of council.
Lane says many attendees shared Port aux Basques’ concerns surrounding the high rate of cost recovery imposed by the federal government on Marine Atlantic.
“The major concern that we have is the cost recovery program,” said Lane via telephone interview.
Lane understands that as a Crown corporation Marine Atlantic must do as it’s told.
“It’s not within Marine Atlantic’s control,” he said. “It’s within the federal government.”
Lane also made inquiries as to when construction might begin on the new administration building which is slated to be built on Hardy’s Arterial in Grand Bay, across from the Bruce II Sports Complex. He doesn’t feel he got a definitive answer.
“My understanding is it’s in the plans,” said Lane, who was wondering about the delay. “By the spring or by next year. So that gave me some concern.”
But Lane thinks the town’s biggest focus when it comes to Marine Atlantic must remain focused on the federal level. He pointed out that Marine Atlantic is the only Crown corporation that is mandated to have a cost recovery, noting that Via Rail has no such recovery program.
“This cost recovery… I mean that hurts every Newfoundlander,” says Lane, who admits he is worried about possible fare increases. “This is our link to Canada.”
Lane says the process is unfair despite the fact that Newfoundland is an island and the federal government is mandated to provide us with ferry service.
“We’re being penalized,” he said.
Mayor John Spencer says the town council continues to lobby hard for a reduction.
“I have written our MP (Gudie Hutchings) outlining why we need to see Ottawa’s demand for cost recovery on Marine Atlantic eliminated,” wrote Spencer via email. “I reminded our MP of how a former federal cabinet minister, Judy Foote, now Lieutenant Governor of the province, rose in the House of Commons on April 28, 2015.
“The Liberals were in opposition, appealing to the Conservative government of the day for change. MP Foote termed cost recovery as an unreasonable demand hurting Newfoundland’s economy. The same call for change was given by, the then leader of the opposition, Mr. (Justin) Trudeau, later in the year prior to the federal election. And now that the Liberals are in power the capacity to initiate change is within our grasp.”
