06/10/2015 – Today, the Canadian Ferry Association CFA) welcomed the Trans-Pacific Partnership (TPP) agreement in principle as a step in the right direction, but reminded policy makers that action needs to be taken now to support ferry operators' efforts to renew their fleet and deliver consistent, timely and safe services to Canadians.
Currently, a 25% tariff applies on the importation of passenger vessels under 129m, despite this same tariff being lifted on nearly all other types of vessels in 2010.
“The fact is, that while this tariff will be removed eventually for countries in the TPP trade zone over a number of years, some ferry operators need to replace outdated vessels in the short-term,” said CFA’s CEO Serge Buy. “Keeping this tariff in place drives the cost up for passengers and taxpayers.”
According to officials from Foreign Affairs, Trade and Development Canada, this tariff will be phased out within five years.
Initially, this tariff was intended to protect the Canadian shipbuilding industry. However, even Stephen Harper noted just a few weeks ago that, “All of our shipyards are up to their eyeballs in work,” referring to the National Shipbuilding Procurement Strategy.
This underscores the very reason that ferry operators in Canada are forced to go to foreign shipyards for their new vessels: shipyards in Canada lack the capacity.
“What is comes down to, is that shipyards in Canada aren’t able to meet the demand, so operators are forced to look overseas. This limits competition and stifles innovation,” added Mr. Buy.
À propos de l'ACT
The Canadian Ferry Association is the national voice of ferries in Canada. Our members operate with the highest professional and operational standards and promote the safe operation of ferry services in Canada. With over 55 million passengers, 19 million vehicles and billions of dollars of goods transported annually, the ferry sector is a crucial part of Canada’s infrastructure.
Visit www.cfoa.ca for more information. Follow us on Twitter @cdnferry.
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For more information or to schedule an interview, please contact:
Kristin Baldwin, Director of Communications
613-686-3838
kbaldwin@cfoa.ca
Transport Canada has issued an RFP for a contractor to take care, custody and control of the MV Princess of Acadia for winter layup and berthing.
To view the RFP, please click ici pour.
St. John's Telegram - Sept 28, 2015
Even before it is elected, the next Government of Canada is set to fight with the Government of Newfoundland and Labrador over ferry tariffs.
Provincial Transportation Minister David Brazil told The Telegram he has not had much luck in his recent efforts to have the federal government waive a $25-million import tax due on two ferries being built for the province in Romania.
“I had some meetings with some policy advisers and I had a discussion with the deputy minister of transportation and, where they’re into a writ now, the policy part of it — around the decisions that are being made there — (they) wouldn’t be able to be made until after the election,” he said, when asked Monday.
“I have no intentions of paying any tariffs until after we have a full-fledged review and discussion with everybody relevant to the tariffs.”
The trouble is, the taxes are due when the boats show up.
As reported in August, the ferries will have to pass through customs in St. John’s upon their arrival in Canada. And import tax is to be paid before the product is released from federal Customs.
“There’s discussions we’re having around how we will deal with that,” Brazil said.
The first of the new ferries, the MV Veteran, was on the way here in August, but was forced to turn back after encountering engine trouble.
Having received a new engine, it left the Damen Shipyards dockyard once again in mid-September.
The ferry left Gibraltar on Sept. 23 and was passing by the Azores, just off São Miguel Island, as Brazil spoke with The Telegram.
It is scheduled to arrive in the province the middle of next week, docking in St. John’s on Oct. 8, subject to weather and sea conditions.
The second ferry, the MV Legionnaire, is expected in the spring, under previously announced timelines.
Crew for both vessels will undergo up to six weeks of training upon arrival, before entering into daily service.
The Veteran will serve the Fogo-Change Islands ferry run, while the Legionnaire will work the Portugal Cove-Bell Island run.
The tariff on the ferry is actually a 25 per cent charge to be levied on all vessels under 129 metres in length coming into Canada, with some exemptions for industry-specific ships.
Damen Shipyards in Romania was awarded the tender for the province’s new ferries in November 2013 and, in November 2014, Brazil told the CBC he was confident the entire tariff cost would be waived.
This week, he highlighted a recent speech that he made to the Canadian Ferry Operators Association in Vancouver on the topic.
On Sept. 14, the tariff on ferry imports for vessels under 129 metres was subsequently announced as one of the association’s two key issues for the ongoing federal election period.
“Keeping the tariffs in place limits competition, innovation and ends up driving costs for Canadian fare payers and taxpayers,” Serge Buy, the association’s CEO, said in a news release.
Trade agreements have the power to kill tariffs. In the province’s case, finalization of the Comprehensive Economic and Trade Agreement (CETA) would eliminate the tariff in question.
Read more, click ici pour.
Quinte News - Sept 25, 2015
The mayor of Prince Edward County is hopeful after meeting with the Ministry of Transportation in Toronto yesterday that another ferry will be put into the loop in the near future.
Robert Quaiff sat down with the Honourable Steven Del Duca, Frontenac Islands Warden Dennis Doyle, Loyalist Township Mayor Bill Lowry and a councillor from Ahmerst Island.
The group explained to Del Duca the delayed maintenance schedule on the Wolfe Islander III is wreaking havoc on the on the three ferry system forcing declines in business and tourism revenue.
Quiaff says Del Duca informed them that they are looking to other provinces to purchase a used ferry and he will get back to the mayors once he investigates.
In terms of a new ferry, Quaiff says a two year environmental assessment is in the works to to determine the impacts it could place on the current ferry system.
Quaiff says he was surprised to learn Windlectric, the developer that received Renewable Energy Approval in August for a 75-megawatt, 36 turbine project doesn’t have to complete an EA run a special vessel or build a dock to ship and receive parts.
Getting back to the meeting Quaiff says Del Duca is still interested in assisting in finding ways to secure funding to fix Highway 49. A project that Quaiff estimates around $10 to $12 million.
Read more, click ici pour.
St. John's Telegram - Sept 24, 2015
Several ferry runs around the province are open for re-imagining, under a call for expressions of interest issued by the provincial government.
The province is looking for a single, private contractor to take on the ferry services for over 34,000 passengers in total — for runs on the south coast of the island and the south coast of Labrador.
“The Department of Transportation and Works has already been in discussions with ferry users regarding options for a new service model managed by a single contractor, and will continue these discussions throughout this Request for Expressions of Interest (REOI) process,” noted a statement issued today by the department.
Any contractor interested in taking on the job is being asked to consider how they would provide the needed vessels and other resources necessary.
In terms of the boats, the department is willing to consider proposals involving: new builds, purchased vessels, charter vessels and/or vessel sub-contracting.
Government will be reviewing what is put forward, then issuing a request for formal proposals.
The call specifically relates to the following ports:
• La Poile
• Grey River
• Francois
• McCallum
• Gaultois
• Rencontre East
• South East Bight
• Norman’s Bay
• William’s Harbour
Currently, the province has a LaPoile-Rose Blanche ferry run, with the MV Challenge One as the go-to vessel, according to the department’s website.
The Charlottetown-Norman's Bay-William's Harbour-Port Hope Simpson uses the 12-passenger MV Marine Eagle.
Gaultois-McCallum-Hermitage is serviced using the MV Terra Nova.
Runs of Ramea-Grey River-Burgeo (MV Gallipoli) and Francois-Grey River-Burgeo (MV Marine Voyager) are also serviced.
Read more, click ici pour.
BC Shipping News - September 21, 2015
The organizers of the Canadian Ferry Association 2015 Conference delivered a well-organized event with many networking opportunities and sessions that kept true to the this year's theme, "Cutting Edge: New Technologies in the Ferry Sector". In addition to a sold-out exhibit area, attendees were able to learn about new products and best practices from experts in the fields of procurement, social media, global marine technology trends, safety and propulsion. Watch out for the November issue of BC Shipping News for a full recap of conference proceedings.
Read more, click ici pour.
Vancouver Province - 14/09/2015
Canada’s ferry operators, including B.C. Ferries, are calling on the federal government to scrap a 25-per-cent import tariff on certain passenger ferries built overseas that they say is driving up fares.
The Canadian Ferry Association CFA) said it pays millions to Ottawa for the tariff, including $45 million on three B.C. ferries being built in Poland for $185 million.
“The cost of the tariff is going back to taxpayers and to passengers,” said the association’s CEO, Serge Buy. “It’s a bit of an issue for us.”
Ferries under 129 metres long are subject to the import tax when they’re built in countries with which Canada hasn’t entered yet formalized free trade deals, Buy said.
The federal government did drop a wider tariff on all imported ships, but left the tax on smaller ferries as a way to protect the Canadian shipbuilding industry.
But Buy and others said that while they try to source their vessels from Canadian shipyards, those manufacturers are too busy working on Ottawa’s National Shipbuilding Procurement Strategy — building navy vessels — to bid for their ferry contracts.
“It’s OK for the federal government to try to protect shipyards, but right now, they are busy,” said Buy.
He said B.C.-based Seaspan, for instance, is so booked up with work on the NSPS that it had to contract out the construction of ferries for its own use to Turkey.
A Seaspan spokesman said he couldn’t provide a comment for the story on Monday.
David Brazil, Newfoundland’s transportation minister, who’s in town to speak at the CFA conference, said he supports in principle the idea of protecting Canadian shipbuilders, but he said they’re working to 95 per cent of their capacity right now and don’t need the protection.
Brazil said a better way to help Canadian companies is to pair them with international giants in the industry to keep jobs in Canada, a strategy he said his government employed with world ferry leader Damen, based in the Netherlands.
“It’s a lucrative deal for Canada,” he said. “We’d love to get as much of the work to stay at home as possible.”
He said he is travelling to Ottawa this week to question government officials and all-party candidates to make this a federal election issue.
Brazil said his goal is to get Ottawa to drop the tariff, but he will at least try to have it paid only on the foreign-built part of the ships, with exemptions for the Canadian portions.
Two-thirds of B.C. Ferries’ fleet is under 129 metres and therefore subject to the tariff when they need replacing, said B.C. Ferries’ vice-president of engineering, Mark Wilson.
“Forty-five million dollars is a significant amount of money,” Wilson said about the tariff on the three new ships being built in Poland. “It’s keeping the fares inflationary.”
Canada is negotiating new trade agreements that would see the tariffs dropped in seven to nine years, said Buy.
But ferry operators want the government to drop the tariff now or waive it when the domestic shipyards aren’t able to build their ferries.
There are 267 ferries operating in Canada and they carry 55 million people and 19 million vehicles a year, the majority of which — 32 million passengers and 10 million cars and trucks — are in B.C., said Buy.
A Transport Canada spokeswoman referred a question about the tariff to the federal finance department.
Transport Canada’s director general Tim Meisner was scheduled to address the conference on Monday but cancelled because high-level bureaucrats are forbidden to speak about policy during an election, organizers said.
Read more, click ici pour.
Welcome aboard Clipper Navigation & Guido Perla & Associates!
BC Shipping News, September 2015
Kristin Baldwin, Director of Communications
It’s a call that we all dread. An emergency. Come as soon as you can. That was the call received by the Bay Ferries’ Princess of Acadia earlier this summer. A crewmember onboard a fishing vessel had been injured and needed emergency medical assistance. The Joint Rescue Coordination Centre in Halifax dispatched the ferry to perform the rescue. The individual was treated by medical professionals on board and was transferred to an ambulance when they got to shore. A fitting task for a passenger vessel that was about to be retired.
A similar event happened just over a week later on our other coast. The Joint Rescue Coordination Centre dispatched a rescue boat from BC Ferries’ M.V. Quinitsa to save a stranded kayaker from frigid waters just north of Buckley Bay.
This is an element of passenger vessel service that is often overlooked: the role they play in marine emergencies.
The crew onboard ferries in Canada are trained to respond to a host of emergency scenarios. It’s just another way Canada’s ferries are providing essential services to communities across Canada. With over 55 million passengers, nearly 19 million vehicles, and more than 260 vessels operating, our ferries have a profound impact in many communities across Canada.
Remote Communities
Navigating our waterways has been an important component of life in Canada since well before the first explorers. While infrastructure has expanded and populations have grown, there are still parts of Canada that are only accessible by travelling on a ferry. This means that everything to sustain a community – food, fuel, etc – needs to be put on a vessel before it arrives at its destination. It also means that the only way tourists can come to these remote places is through a ferry. Oftentimes ferries are also critical in emergency situations, as a way to get to a hospital.
Communities served only by ferries include:
Without the ferry, remote communities would be far more isolated. This is a prime example of how ferry operators are bringing us all together.
Investing in Local Communities
Ferries create jobs. It’s just that simple. Across Canada, ferry operators employ over 9,000 people directly and over 22,600 people indirectly. But going even further, ferries are also paving the way for future investments.
Marine Atlantic’s new terminal in Nova Scotia is more than just a cutting-edge piece of architecture, but it also provides a solid foundation for future investment in the community and across the province.
Over the next 5 years, ferry operators will be investing more than $1.5 billion to upgrade and renew their fleets, and much of this work can be done here in Canada, creating even more jobs.
Learn More!
Join us in Vancouver at our Annual Conference to learn more!
September 13-15, 2015 at the Marriott Pinnacle. This year’s theme is “Cutting Edge: New Technologies in the Ferry Sector.” Across Canada, ferries are looking for new ways to improve passenger’s onboard experience and make their vessels more efficient.
This is an excellent opportunity for operators and suppliers to network and develop business relationships. There are opportunities for suppliers to showcase their products, address conference delegates and meet key contacts from the major ferry operators in Canada.
To register for the 2015 conference or for more information about the work being done by the Canadian Ferry Association, visit our website at www.cfoa.ca/conference.
We are excited to announce that David Brazil, Newfoundland and Labrador's Minister of Transportation and Works, will be addressing our conference delegates.
We hope you will join us at CFA 2015. Register today, click ici pour.