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The province is embarking on a formal consultation with taxpayers as it attempts to trim $26 million from B.C. FerriesBԪַ costs. It also wants to develop a long-term vision before $2.5 billion is spent on new vessels.
The consult is a complex undertaking that residents in ferry-dependent communities are approaching cautiously, hoping their voices are heard before the ferry corporation charts a new path.
B.C. Transportation Minister Mary Polak said the province is open to all new ideas that are gathered through its public consultation, although they arenBԪַt binding.
BԪַIBԪַve been impressed, when IBԪַve spoken with leaders from the coastal communities, how many of them have already been giving a lot of thought to potential solutions, ideas like the use of water taxis or the use of passenger-only ferries,BԪַ Polak said.
Other options include the use of smaller vessels on underutilized routes, she said, but any decisions are likely to be announced next year, after the consultation concludes Dec. 21.
B.C. Ferry Commissioner Gord Macatee suggested commercial traffic might be separated onto dedicated barges, and the successful drop-trailer shipping service could be expanded from its current level of 600 transports per week, freeing up passenger ferries to better accommodate resident needs.
Expanding public transportation on the Gulf Islands would help make passenger-only ferries feasible, said Tony Law, ferry advisory committee chair for Denman and Hornby islands.
BԪַWhen B.C. Ferries buys a ferry, itBԪַs going to last for 40 or 50 years and a lot can change during that time,BԪַ he said.
BԪַAnd each situation is very, very different. Each route is quite unique in terms of its configuration and the people who use it. So, itBԪַs pretty hard to come up with solutions that fit with every case.BԪַ
A bridge from Nanaimo to Gabriola Island is another outside-the-box proposition that could save money over time, said Law, who has been involved in ferry advocacy since 1996.
BԪַWe hope that (the consultation) is conducted in a way BԪַ that something meaningful comes out of this,BԪַ he said.
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B.C. Ferries funds itself through three sources: fares, government subsidies and ancillary revenue from such ventures as on-board food services, parking, terminal markets and consulting for other ferry providers.
BԪַEvery extra dollar of ancillary revenue takes pressure off the fares,BԪַ Macatee said, correcting a common misconception that the creation of BԪַluxury cruisersBԪַ is driving up costs.
BԪַTheyBԪַve gotten up to $100 million in (annual ancillary) revenue, which is really impressive.BԪַ
While Macatee canBԪַt make specific recommendations to B.C. Ferries for new revenue streams, due to his mandate, he can push the corporation to demonstrate that it has looked at alternatives.
BԪַThe job of a regulator is to hold their feet to the fire and really force them to justify that theyBԪַre being efficient,BԪַ he said. BԪַBut at the end of the day, they have other regulators theyBԪַve got to deal with: provincial laws, federal laws.BԪַ
Possible money-generating services include onboard casinos, alcohol sales on major routes and selling branding rights on vessels.
Only the longer northern routes of Port Hardy-Prince Rupert and Prince Rupert-Haida Gwaii currently serve alcohol on board, although those routes still experienced shortfalls of $28.6 million and $24.2 million, respectively, last year.
BԪַThere are a lot of issues with serving alcohol on a car ferry service, but letBԪַs face it, not everybodyBԪַs the driver,BԪַ Macatee said. BԪַWe certainly want (B.C. Ferries) to look at those things. But to walk in and tell them they should be getting into the casino business, thatBԪַs their job, and I understand the line very clearly.BԪַ
Polak all but ruled out the possibility of adding such services in the short-term. BԪַTheyBԪַre not things that we have proposed or put on the table,BԪַ she said, adding any new ideas should have public support.
NDP critic for B.C. Ferries, Gary Coons, said he personally doesnBԪַt want such alternate revenue streams as casinos, liquor sales or branding to be a part of a long-term plan.
BԪַWeBԪַve had this long-term social and economic contract with ferry-dependent communities ... providing affordable transportation,BԪַ he said. BԪַWe have to get away from (the idea of) B.C. Ferries as a tourism product and cruise ship line (and think about) meeting the needs of people who rely on ferry service and the economics that go with that.BԪַ
Polak said changes will take place gradually over the remaining three years of the service contract, only after the public consultation is complete.
BԪַThere are taxpayers who donBԪַt live in communities that are depending on ferries. They also have an interest in what happens to changes in services to ferry communities,BԪַ she said.
Macatee cautioned the choices made in the coming months will affect the very future of B.C. Ferries and marine transportation in the province.
BԪַIf there is a long-term vision, somebody needs to say it soon, before we build $2.5 billion (worth of) car ferries, which is whatBԪַs going to happen in the next eight years,BԪַ he said.
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A 12-per-cent jump in fares over the next three years leaves people like Harold Swierenga scratching his head at the prospect of a re-imagined ferry corporation.
BԪַVancouver Island is a huge part of the provincial economy, and yet the fares keep rising,BԪַ said Swierenga, chair of the Salt Spring Island ferry advisory committee. BԪַAnd the attitude that this is all supposed to be a part of building the coastal economy seems to be lost.
BԪַThe government seems to view the ferries as just another utility that they should keep as far away from government books as possible. But itBԪַs a monopoly, itBԪַs locked in. If the fares go up, we have no choice. We still pay the fares.BԪַ
Coons maintains that the entire structure of B.C. Ferries has to be reconsidered. He also wonBԪַt rule out the possibility of returning it to a Crown corporation under greater government control.
BԪַWeBԪַve got to look at B.C. Ferries differently ... and acknowledge that itBԪַs a difficult part of our highway network,BԪַ he said.
For now, residents of coastal British Columbia are watching from the shorelines, waiting out the storm.
Some fuel for thought
Switching the entire existing fleet to cheaper and cleaner fuel such as liquified natural gas (LNG) is possible, but expensive, according to a 2011 feasibility study commissioned by B.C. Ferries.
The first ships slated for mid-life upgrades are the Queen of Capilano, which operates on the Horseshoe Bay-Bowen Island run, and the Spirit of British Columbia (above) and Spirit of Vancouver Island, which sail between the mainland and Vancouver Island. The deadline for conversion decisions on the three vessels is 2015.
A switch to LNG would save $1.8 million in fuel costs each year on the Capilano and an average of $6.5 million each on the Spirit-class vessels.
In total, B.C. Ferries could reduce fuel costs by an estimated $28.8 million annually by converting mid-life ships and purchasing all new vessels with LNG-powered engines, according to the study.
dpalmer@vicnews.com
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