Uncertainty looms over CAT ferry service between N.S. and Maine

Months after celebrating the return of the Nova Scotia to Maine ferry, business owners in Yarmouth, N.S., are now fearful after the Houston government signalled ending the ferry contract was a possibility.

“It takes very little to scare the community at this point based on our experiences,” said Rick Allwright, the executive director of the Yarmouth and Area Chamber of Commerce.

“We've literally heard from operators that were planning major renovations that aren't doing them. They're done. They're not doing them,” he said.

The community’s concerns come after Premier Tim Houston expressed disappointment in the latest passenger figures of a ferry service that was once shut down, then revived and just ended a three-year hiatus due to terminal upgrades and COVID-19.

On Thursday, Bay Ferries told CTV News it expects to carry between 37,000 and 41,000 passengers this season.

“I said I was disappointed, and I stand by that,” Premier Houston said. “There’s been no decision made of course. We want the season to finish, we want all the facts and we want to have a number of discussions with a number of people.”

A newly released contract between Nova Scotia and Bay Ferries shows the province would have to pay if it ended its deal before 2026.

At this point in the 2018 contract, the termination fee would automatically be the same as the annual management fee -- $1.17 million. The contract also stipulates Nova Scotia would be on the hook to cover contractual costs such as terminal leases, severances and insurance.

Nova Scotia budgeted $17 million to subsidize the Yarmouth ferry this season.

“Since 2016, the investment of the province in the ferry operations has been in the range of $130 million to $150 million,” Houston said.

Nova Scotia Liberal Leader Zach Churchill believes there is an economic case to keep the ferry. He said American visitors are spending about $1250 each, and notes that during 60 per cent of their visit, ferry passengers are spending time in other parts of the province.

“Overall, the visitations to Canada by boat are down 78 per cent,” Churchill said. “The CAT numbers are only down 25 per cent and considering this is year one in a tourism recovery season, these are very strong numbers.”