Cardigan MP Lawrence MacAulay announced Friday the federal government is seeking a new 20-year commitment to the ferry service.
Transport Canada launched a request for information process on Friday from any private sector companies that might be interested in running the service.
The deadline is July 31.
After that, the federal government will issue a request for proposals.
What it means is that Northumberland Ferries Ltd., which currently operates the Woods Islands-Caribou service, will continue to operate the service this year, But, if it wants to continue past 2017 it will have to bid for it, just like everyone else.
And the successful bidder will be asked to commit to running the ferry service for 20 years.
Related: Northumberland Ferries, ferry worker, businessmen praise long-term commitment
MacAulay made the announcement in front of an overflowing crowd at the Belfast Rec Centre.
“We will put a long-term contract in place that is great for workers, great for the economy, great for tourism and great for industry,’’ MacAulay said.
This new model of operating the ferry service would also include a three-year transition period so the new operator can procure new vessels. The age baseline would be no older than 10 years but, of course, new vessels would be welcome.
MacAulay sees this as one way of avoiding issues where a vessel like the MV Holiday Island has to be taken out of service for the season due to issues related to aging.
Right now, Northumberland Ferries operates two vessels, one 45 years old and the other 24 years old.
MacAulay said the RFI process is so Transport Canada can see the full scope of what is available when it comes to providing ferry services. He added that it is an open and transparent process.
The ferry service has been subsidized by taxpayers for the past 75 years.
Premier Wade MacLauchlan called it a significant announcement.
“It is a game changer,’’ MacLauchlan said. “It’s going to be an opportunity for us to imagine beyond anything we have yet, how our communities can do well (such as) tourism, manufacturing, farming and fishing.’’
The premier said a 20-year commitment exceeded even his wildest expectations when he set up the ferry task force.
“This was beyond our dreams. To have reliability for people in this part of the province, in Nova Scotia, in our region, to imagine how we can do well and grow and show the country is fantastic.’’
Sean Fraser, MP for Central Nova, said he saw first hand how valuable a reliable service was last year when Northumberland Ferries Ltd. operated without the MV Holiday Island. Fraser’s Nova Scotia riding takes in the Caribou end of the ferry crossing.
“It was an informative experience with the MV Holiday Island off the waters,’’ Fraser said. “People were up in arms; they were disappointed at the instability of the ferry service. The (effect) was enormous, particularly on the transportation sector, but also the tourism sector.’’
Under the new long-term approach, contracts would include provisions requiring that all repair and maintenance work be done in Canada.
The federal budget included $278.3 million, over five years, for the continued safe and reliable operations of three ferry services within and between P.E.I., Nova Scotia, New Brunswick and the Magdalen Islands.
