BC Ferries' workhorse Spiirit-Class vessels are being converted to LNG fuel to reduce costs

Ferry fare hikes to be capped at 1.9 per cent

Route reductions, cheaper fuel and more tourists expected to hold fare hikes to around inflation until 2020

The next BC Ferries fare increase of 3.9 per cent will go ahead as scheduled April 1, but increases will be capped at no more than 1.9 per cent for four years after that.

BC Ferry Commissioner Gord Macatee said Wednesday the recent sailing reductions and other cost cutting, lower fuel prices and positive ridership forecasts have allowed him to set the cap at about the rate of inflation for all routes from 2016 to 2020.

A lower dollar is expected to attract U.S. residents to B.C. while keeping more Canadian vacationers at home, with lower gasoline prices for travellers as well as ferry fuel costs, Macatee said. Conversion of ships to use liquefied natural gas will also reduce fuel costs.

Macatee cautioned that oil prices are volatile, and the forecasts are based on $65-a-barrel oil compared to about $50 today.

“Trying to predict fuel prices for the next five days is daunting,” Macatee said. “Our challenge is to predict it for the next five years.”

BC Ferries has cut administrative costs by $5 million since 2009, reduced executive pay by $1.2 million a year, reduced overtime and improved safety enough to lower WorkSafeBC premiums for employees.

BC Ferries CEO Mike Corrigan said he is pleased with the findings of a performance review by PriceWaterhouseCoopers that gave the corporation good marks for efficiency and the operation of BC Ferries Vacations. Food service revenue is approaching $50 million a year and a drop trailer service for truckers is also contributing to BC Ferries’ bottom line.

An overhaul of the ferry reservations system is also expected to improve ridership when it is implemented.

NDP ferries critic Claire Trevena said the optimistic forecasts are based on a two per cent increase in ridership, but to the average traveller, they mean further increases to an already high fare. She also cautioned that the 1.9 per cent cap is an average for the BC Ferries fleet, and some routes could see larger increases.

For the longer term, Macatee said he has asked BC Ferries to evaluate savings to be had by consolidating the three ferry terminals at Nanaimo and three on Saltspring Island. He wants BC Ferries to reconsider a $200 million terminal replacement and six new vessels for Horseshoe Bay, considering if smaller vessels and more sailings would be more efficient.

Just Posted

Bad behavour to lead to expulsion at Abbotsford council

New rules lay out how a member can be booted from a meeting

More extreme weather beds needed in Mission

Council allocates another $5,000 to help keep people safe, warm and dry

Input sought for road works for Maple Ridge

Consultation on Haney Bypass upgrades

Trial begins for man charged with 2010 murder of Mandy Johnson

Langley single mom was fatally shot while in vehicle in Abbotsford

KPU campuses go smoke-free starting Jan. 21 – and that includes vaping

‘We didn’t make this decision lightly’ says prez of the Surrey-based institution

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

B.C. out of the running for Amazon’s next headquarters

Toronto is the only Canadian city left in the running despite the province backing Metro Vancouver’s bid for new Amazon headquarters

B.C. hockey player nominated for Hobey Baker Award

Myles Powell is a forward at Rochester Institute of Technology

Post interest rate hike debt tips

What to do about your debt and mortgages after the interest rate hike

Foreign workers sleeping in Alberta Burger King basement

Alberta Health Services said its inspectors found foreign workers sleeping in the basement of the Lethbridge restaurant

Court application halts release of bread price-fixing documents

Bread price-fixing documents won’t be unsealed Thursday, Loblaw says

Pharrell and N.E.R.D to headline NBA All-Star halftime show

11-time Grammy winner Pharrell and his hip hop-rock band N.E.R.D. will headline the halftime show at the 2018 NBA All-Star game in Los Angeles

Heritage Minister wants zero tolerance for harassment in entertainment industry

Heritage Minister Melanie Joly had two meetings to discuss harassment in the film, TV and theatre worlds

Newly freed Diab wants reforms to Canada’s ‘lousy’ extradition law

French authorities dropped terrorism charges against Hassan Diab who was suspected of taking part in an attack in Paris in 1980

Most Read