Nova Star Cruises made its case to continue as the ferry service that links Nova Scotia to Maine on Thursday, saying it believes it can become financially viable within the next three years.
CEO Mark Amundsen told the legislature's economic development committee that his company expects to meet the 80,000 passenger threshold to make the company viable within that time.
The goal had been to reach that target this season, but figures released earlier this week show passenger traffic is down over this time last year and projections are for the ferry to hit the 60,000 passenger mark -- a figure similar to last year's total.
"The inconvenient truth is the ridership hasn't been up," said Amundsen. "We have to build collectively and collaboratively with Nova Scotia Tourism to get the ridership up.”
While American passengers are up by more than seven per cent, Canadian passengers are down 40 per cent from last year.
To make the service sustainable, Amundsen said Nova Star is working on a long-term cost plan that includes a switch to natural gas as fuel and is also increasing its marketing efforts in New England.
“When you stop the marketing completely in New England, it takes time to rebuild,” he said.
Amundsen acknowledged the importance of finding winter work and said the company is still negotiating to land a route between England and France as a backup and is working to finalize a licence between the U.S. and Cuba.
Amundsen said the service would still need help from taxpayers, but that the amount would be less in future years.
However, when pressed about how much would be needed by NDP Leader Maureen MacDonald, Amundsen didn't have an answer.
"We have not factored for 2016, but it will be less," he said.
In its initial season, the ferry received $28.5 million in provincial subsidies. The province committed $13 million for the service this year and so far has given out $9.6 million of that amount.
The Transportation Department is assessing the service and is looking at three other potential operators for the 2016 season.
Alan Grant, the executive director of policy and planning for the department, said government is committed to long-term ferry service between Yarmouth and New England. But he says the question of who the operator will be still remains.
"We're not aware at this point of whether there's a better boat out there or a better operator," said Grant.
Deputy transportation minister Paul LaFleche told the committee that determining a reasonable level of subsidy is also part of the considerations, although he couldn't give an exact dollar figure.
"We want to hear a realistic story about subsidy and benefit and passenger numbers, not sort of a dream," he said.
Nova Star is one of four potential operators the government is considering.
“This is the decision that will define this service for a long - many years - hopefully a 10-year agreement and if we rush this and we don't get it right we will be responsible,” said transportation minister Geoff MacLellan.
The officials said a decision on an operator for 2016 would likely be made following the end of the current sailing season in mid-October.
With files from the Canadian Press and CTV Atlantic’s Jacqueline Foster.
