In hindsight: 'We would have taken the same approach'
Bay Ferries president talks about Cat ferry service
Asked if Bay Ferries is confident the work being undertaken at the terminal in Bar Harbor will be completed in time for an early start to a 2020 sailing season of The Cat ferry, the company’s president and CEO says the company is.
But he is also cautious in his response when looking to a potential start date.
“We are confident the work will be completed in time for 2020 ferry season, but ultimately that will be dependent on our ability to obtain the various necessary approvals and authorizations and completion of the work,” says company president Mark MacDonald. “All parties are working very hard to that end.”
The Cat did not make any scheduled passenger sailings during 2019 due to the ongoing work in Bar Harbor. That work, which is being paid for by the province, has to be in compliance with US Customs and Border Protection (USCBP) requirements, which have become more stringent in recent years.
Neither Bay Ferries nor USCBP will discuss specifics of the work. MacDonald says
Bay Ferries does not comment publicly on its discussions with USCBP. When contacted and asked for an update on the progress
The Cat ferry while docked in Yarmouth during a previous season. The ferry made no passenger crossings during 2019.
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of work at the terminal, USCBP spokesman Michael McCarthy replied: “No update from U.S. Customs and Border Protection’s perspective. The construction timeline is dictated by the ferry operator and its hired entities (builder, architect, etc.). CBP continues to work closely with all parties involved.”
USCBP has stated this type of project takes 12 to 18 months to complete from design to construction.
The purchase of the terminal facility by the Town of Bar Harbor from the State of Maine occurred in February. Bay Ferries leases the property from the town.
Even though The Cat ferry
did not have scheduled passenger service there will still be an operating cost associated with the season and it will be in the high millions. There hasn’t yet been final figures released by the province as to this year’s final cost. An update could come in December.
Bay Ferries says a lot of its costs were fixed and had to be paid even without a service running. It says this included such things as lease agreements, employee wages, etc. There were also a couple of trips to Bar Harbor as part of testing the route. Money was also spent on housing part of the crew in Yarmouth in the event the service could have started.
“We housed the crew in Yarmouth
through the season in the hope that some service would be offered, and also to retain the employees who are otherwise qualified and in high demand,” says MacDonald.
Some employees ended up working on the Fundy Rose ferry that sails between Digby and Saint John.
The problem with any expenses of The Cat this year is there was no revenue to offset them. The company says it was wary of that.
“We have minimized expenses wherever possible to mitigate substantial impact of revenue loss,” says MacDonald.
Over the summer, the Fundy Rose did see an increase in ridership this year compared to last, although MacDonald says it is very difficult to quantify with precision how much of that traffic may have been passengers who would have travelled on
The Cat instead. The company did encourage passengers displaced by The Cat’s lack of sailings to consider the Fundy Rose as a means of travel.
The Cat will winter in Charleston, South Caroline. Winter work, if any, will be determined in consultation with US Navy in the weeks ahead. Bay Ferries has secured a new fiveyear agreement with the US Navy – owners of the vessel – to use The Cat for the next five years.
Meanwhile, asked if in hindsight it was a mistake to not have opted to renew the lease to stay in Portland at least one more year while the work in Bar Harbor was underway, MacDonald suggests it would have been complicated and costly to do so, plus opportunity presented itself in Bar Harbor.
“We knew our time was very limited in Portland as the city needed all or part of the land for other purposes. And a new border facility would have been required (for which no land was available), which we estimate would have cost $10 million U.S.,” he says. “At the same time we saw a potential opportunity to move to Bar Harbor as the town was evaluating purchase of the terminal and potential uses of the terminal land. But that opportunity might have existed only for a limited time.”
Bay Ferries expects to be able to reduce annual operating costs of The Cat due to the shorter crossing between Bar Harbor and Yarmouth. It also expects to tap into Bar Harbor’s robust tourism market.
“In hindsight, even though 2019 has been very difficult for everyone, we would have taken the same approach as we needed to solidify a new home for the service if it is to exist going forward,” says MacDonald.