HALIFAX -- The company that was operating the ferry between Nova Scotia and Maine when it was axed in 2009 is poised to get another shot at establishing the money-losing service after a decision announced Thursday by the province.
Transportation Minister Geoff MacLellan said the government had entered into talks with Bay Ferries to take over the ferry run between Yarmouth and Portland.
The route was operated over the past season by Nova Star Cruises, which received $41.5 million in provincial subsidies in its first two years of operation.
Four companies, including Nova Star, submitted proposals to run the service in 2016, but MacLellan said Bay Ferries scored highest on his department's list of criteria.
"It fundamentally came down to their experience, their expertise, their understanding of this market," said MacLellan. "They really brought a package that made sense."
MacLellan wouldn't release any details about the contract talks, including the potential level of subsidy or whether Bay Ferries had secured the use of a vessel. He said the company would have 45 days to inform the government that they have secured a ship.
He said details about the contract would be released once negotiations were completed, although he said there was no deadline date.
MacLellan also wouldn't go into detail about the reasons for dumping Nova Star, although he had expressed frustration about his dealings with the company in past months.
"We needed a real change in direction," he said. "Bay Ferries is going to give us our best shot at stability and for a long-term shot at real success."
Mark MacDonald, the chief executive of Bay Ferries, said in a new release the company wants to work with the province in "rebuilding this key transportation corridor."
The company currently operates the ferry service between Digby, N.S., and Saint John, N.B.; as well as the route between Wood Islands, P.E.I., and Caribou, N.S.
It was the operator of the high speed Cat ferry between Yarmouth and Maine between 2006 and 2009. The service was shut down after the former NDP government announced it was eliminating the annual subsidy.
Progressive Conservative Chris d'Entremont, whose riding is in southwestern Nova Scotia, said Bay Ferries has proven to be a good operator of ferry services in the province.
However, he expressed some concern that the contract details are still under wraps, saying he wants details on things such as the type of ship and the amount of Nova Scotia vendor and employment content.
"I hope that 45 days is a maximum and that Bay Ferries can come back with a signed business plan in a shorter period of time," said d'Entremont.
Nova Star Cruises relaunched the service in 2014 but was constantly strapped for cash and had difficulties meeting passenger targets. It carried 52,000 passengers in the just-concluded season -- well below its projected goal of 80,000.
Last month, CEO Mark Amundsen told the legislature's economic development committee that Nova Star would need another three years to become financially viable.
On Thursday the company issued a news release expressing its disappointment with the province's decision.
"We would like to thank the people of Nova Scotia for their support over the past two years, and we will work with the Province of Nova Scotia toward a smooth transition to the 2016 operating season," the company said.
