Nova Star won’t be Portland-to-Nova Scotia ferry operator next year
Courtesy / Nova Star Cruises
Nova Scotia is dropping Nova Star Cruises as the operator of the Portland-to-Yarmouth, Nova Scotia ferry route after two years of disappointing passenger counts and additional funding requests.
Geoff MacLellan, Nova Scotia’s minister of transportation, said Thursday that Bay Ferries Ltd. is the preferred candidate to operate the ferry route, and the provincial government is negotiating a contract with the Canadian company.
The provincial government initially provided $21 million Canadian to the Maine-based Nova Star for the inaugural 2014 season, a loan that was meant to be spent over a seven-year period. Nova Scotia later provided an additional $7.5 million to the ferry service in 2014, but reduced the subsidy for the 2015 season.
In total, the Nova Scotian government gave $41.5 million Canadian ($31.5 million USD) in subsidies to Nova Star in its two seasons.
Following the first season, Nova Scotia’s minister of economic and rural development and tourism, Michel Samson, said the original projections and $21 million agreement were unrealistic.
In both seasons, the ferry service missed passenger goals. The ferry carried 59,000 passengers in its first season after projecting to serve 100,000. It reduced its goal to 80,000 in the second season, but passenger counts dipped to 52,000, the Portland Press Herald reported.
MacLellan told the Press Herald that the Nova Star’s requests for additional funding and financial reporting delays made it difficult for the government to continue the relationship.
MacLellan said in a statement that Bay Ferries has the experience, expertise, industry relationships and much of the operational infrastructure already in place to “hit the ground running” next year.
Bay Ferries previously operated the high-speed Cat ferry on the route for four years until the government stopped subsidizing it. Without the government subsidy, the ferry service was reported to be facing a $7 million operating loss, according to the Press Herald.
Nova Star President and CEO Mark Amundsen said in a statement that the company is disappointed it wasn’t selected to continue operating the route.
“We would like to thank the people of Nova Scotia for their support over the past two years, and we will work with the Province of Nova Scotia toward a smooth transition to the 2016 operating season,” Amundsen said.
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