BAR HARBOR — The recent announcement that the Bluenose ferry will no longer run in the wintertime may have been premature.
Marine Atlantic officials decided this week to continue operating the service between Bar Harbor and Yarmouth, Nova Scotia, using MV Bluenose until completing an analysis of the economic impact of switching to seasonal service.
Before making a final decision, Marine Atlantic and the federal and provincial governments will review the economic impact study South West Shore Development Authority in Yarmouth began in August and expects to complete by Sept. 30.
According to Bob Kelly, public relations officer for Marine Atlantic, the decision to reconsider suspending service was motivated in part by an outcry from the two primary groups using the wintertime ferry service — Canadian fish and pulpwood exporters.
The Ministry of Transport-owned Marine Atlantic had planned to suspend Bluenose service after Oct. 10, and to tie up the vessel until resuming seasonal service in May 1996. The plan had been prompted by concern that the loss of Canadian federal subsidies would make winter runs unfeasible.
About 92 percent of the service’s revenue is generated in its peak season from May to October, said Kelly. Marine Atlantic had calculated that dropping the unprofitable wintertime service would result in the company actually making a small profit by 1997.
The publicly financed company has traditionally run the ferry service with Canadian federal subsidies averaging about $5 million each year. But a directive issued by the Canadian government earlier this year ordered Marine Atlantic to commercialize its service in anticipation of federal subsidies coming to an end.
Marine Atlantic officials say the decision on winter service could have financial consequences for the 1995 operating budget, and that additional operating costs incurred after Oct. 10 may be recovered next year by modifying service.
Comments
comments for this post are closed