General news articles on BC Ferries

[Starsteward]

I wasn't commenting on Neil or Dane's take on the 'article', rather I was referring only to the short-term aspect of housing security forces during 2010. Otherwise, I agree with Neil and Dane that the housing of, or hiding of other 'troublesome' folks is indeed a stupid idea.

[Low Light Mike]

seattlepi.nwsource.com:80/getaways/359124_shorttrips17.html

====================

Insiders and outsiders share the fantastic beauty of a spectacular B.C. coastal voyage
By ALISON APPELBE
SPECIAL TO THE P-I

According to the crew on BC Ferries' Northern Adventure, passengers on its run through the Inside Passage either are "insiders" or "outsiders."

Insiders stick to the Raven Lounge -- chatting, playing cards, watching a movie, snoozing. Outsiders are on the decks -- wind, rain, sleet, whatever.

"Even in bad weather, there are always people outside, bundled up and watching the views," said chief steward Chrissy Manson. "They're in awe of the mountains and the trees -- that's what they talk about. And the wildlife."

On a sailing I took last fall -- a 15-hour, non-stop day trip from Port Hardy on Vancouver Island to Prince Rupert on the northern mainland -- the Northern Adventure carried 50 cars, 14 RVs, one bus, one U.S. Customs van with a gamma-ray scanner destined for Alaska, six bikes, four motorcycles, one kayak, 227 passengers and a crew of 53.

The water churned wildly as this midsize vessel -- part ferry, part cruise ship -- slipped away from the loading dock at 7:30 a.m. We were about to travel 240 miles up the spectacular inside channels of B.C.'s coastline.

Actually, my trip had begun the day before in Victoria, where I joined a Pacific Spirit Tour coach traveling up-island. We stopped at Chemainus to examine its 40 or so murals depicting the region's history, and at Coombs, where a couple of goats famously graze on the roof of the country market.

At Sayward, deep in forestry territory, we pulled in at the Cable Cookhouse for coffee and pie. A Ripley's Believe It or Not kind of place, the entire structure is wrapped in used logging cable -- more than 8,000 feet of it, weighing 26 tons!

At Port Hardy, near the Island's northern tip, we ferrygoers checked in at the budget Quarterdeck Resort on the commercial harbor. Sitting up at the bar in the pub, I reveled in a burger of deep-fried oysters, pulled that morning from nearby Fanny Bay. The pub's TV screens showed poker and stock-car racing. The place rocked.

The next morning at 6 we boarded the Northern Adventure. Built in Greece, the 380-foot ship was purchased by BC Ferries in 2006 and refitted to carry vehicles and passengers.

Mountains, sometimes snow-capped, and islands, rocky and forbidden looking, frame the Inside Passage. Fjordlike inlets run into the mountains; plumes of water fall hundreds of yards. Beyond, to the east, lies dense grizzly habitat. This is wild, watery British Columbia at its best.

Passengers included Russian, Dutch, British and U.S. tourists, and some First Nations people returning to their ancestral homes. On this trip, the Kids Zone was empty.

This day-trip run operates summer only (May 18-Sept. 30 this year). An overnight service from Port Hardy to Prince Rupert runs year-round. BC Ferries also runs a summer midcoast service from Port Hardy to mainland villages such as Bella Bella and Ocean Falls.

The ship's two engines generate horsepower capable of 21 knots "if we wanted," said the ship's captain, Guy Kendall, as the PA system reported a spouting whale on the starboard side.

In the Northern Adventure's Coastal Cafe, over croissants and a rasher of bacon, I ran into Ken Ackerman, a business writer from Columbus, Ohio. He was eager to get to Prince Rupert, where a new $170 million container terminal with massive cranes was expected to shift railway-shipping patterns in North America. "Rupert is going to be the fastest route from Shanghai to Memphis," he said. "That's 12,000 miles closer than Los Angeles and Long Beach. You save two whole days."

Ackerman, an insider, soon settled into a recliner in the Raven Lounge with his wife and a couple of friends who came along for the ride. "Walk the Line" was playing on the big screen. Other passengers retreated to their day cabins.

Up on the bridge, Third Officer Ron Davis was standing in front of an electronic navigation system fed by satellites. On a screen, Davis pointed to moving dots -- or dashes. "Here comes Angie around the corner, a fishing boat," he said. "And the Alaska State Ferry. We'll see him around Bella Bella."

Then the voice of a crewmember on the car deck came over the radio: "I've got a guy down here who's locked his keys in his camper," he said.

"Welcome to our world," Davis said.

At the same time, a pod of Pacific white-sided dolphins was said to be swimming alongside the ship.

North of Bella Bella the ship must briefly leave the protection of the Inside Passage for open ocean. Passengers were told that the Northern Adventure was heading "out to Milbanke Sound" where we could expect sizable swells. The car deck was closed. I retreated to my cabin for a nap.

An hour later and the ferry was back "inside" on protected waters. Boat Bluff Lighthouse marked the entry to Tolmie Channel. At Swanson Bay, passengers gathered at the rail to see the ruins of one of the first pulp mills on the coast, abandoned in 1918.

We entered Grenville Channel, where the Inside Passage narrows to as little as 1,400 feet. Bald-headed eagles could be seen high in the trees. Moose and deer swim this channel, we were told. Grenville Channel is said to be many passengers' favorite stretch of the route.

At the Coastal Cafe I ate a roast-beef dinner with all the trappings, including wine. A group of Dutch passengers was justifiably upset the route map gave the wrong times for the sightings of important landmarks. "They shouldn't give it out," one said. (A chief steward later told me that it would be corrected.)

Quietly, and as dusk fell, the Northern Adventure slipped into the dock at Prince Rupert. And off rolled 50 cars, 14 recreational vehicles, one bus, one U.S. customs van with a gamma-ray scanner, six bicycles ... and all us foot passengers, insiders and outsiders both.

------------

If you go

Northern Adventure day trip -- The service runs May 18-Sept. 30. Advanced booking is highly recommended. A standard vehicle fare is $300 (Canadian), an adult passenger or driver is $125 (plus fuel surcharges for both), senior, student and children fares are less. And full surcharges are added to all fares. Schedule: goto.seattlepi.com/r1342. Fares: goto.seattlepi.com/r1343. General ferry information: bcferries.com

Getting there:


For drivers from Washington state, BC Ferries has a route from Vancouver (Tsawwassen Terminal) to Victoria, and from the Horseshoe Bay Terminal to Nanaimo. Vancouver-Nanaimo fares start at $43 (Canadian) for a standard vehicle with driver. Additional adults are $13. From Nanaimo, it's 243 miles to Port Hardy.


The passenger-only Victoria Clipper ferry service connects Seattle and Victoria. Standard adult fare is $85 (U.S.) from May 23-Sept. 1. clippervacations.com


Pacific Spirit Tours runs an all-day coach tour -- the "BC Ferries Inside Passage connector" -- from Victoria to Port Hardy, coinciding with Northern Adventure departures. It requires an overnight stay in Port Hardy. The adult coach fare of $159 includes an early morning transfer to the ferry terminal. 888-802-1524; pacificspirittours.com


A cheaper option is a Greyhound/Laidlaw coach from Victoria (departing 5:45 a.m.), arriving in Port Hardy in the midafternoon. Adult fare is $84 (Canadian) and reservations are recommended. Contacts: 250-949-7532 or 250-385-4411; greyhound.ca. A shuttle service runs from the town to the ferry terminal in the early morning ($6.50).

Other options:


From Prince Rupert, the Via Rail Skeena service runs east to Prince George and Jasper, Alberta. viarail.com.


BC Ferries will arrange a 10-day "circle tour" from Vancouver to Port Hardy, passage on the Northern Adventure, rail service to the Rockies, and back to the coast (or the other direction).


Daily Air Canada flights connect Prince Rupert and Vancouver.


Alison Appelbe is a freelance writer based in Vancouver, B.C. She can be reached at [e-mail]
==========================

[Northern Exploration]

Thank Flug for posting that. A pretty good commentary on the trip. He missed the stop in Telegraph Cove on the way up the Island . The Quartermaster Inn is one of the first places to fill up if you are planning a trip. I knew the tour package companies favour it and the hotel next door. They were the cleanest and newest of the choices which are pretty slim.

I learned today that I am an outsider. I knew the spots on the QoftN where you could stay dry and comfortable even when the odd squalls rolled in on the trip. A thick wool sweater and my waterproof Helly Hansen and I was set.

[Mill Bay]

Powell River residents want free ferry rides for sports
By Travis Lupick
Publish Date: April 16, 2008

Karissa Agius, a Powell River woman, is circulating a petition which requests that BC Ferries allow Powell River elementary and high-school students to travel for free when on sporting trips.

Agius told the Straight that there is always someone heading across the water for a soccer game or other sporting event. “The costs get huge,” Agius said.

Agius’s uncle, Rick Agius, helps coach his daughter’s soccer team. He said that at least twice a month, 17 children and four adults must all pay $10 a head, plus vehicle transportation fees and fuel costs.

“Its getting to the point where it’s so expensive that all the fundraising we do is strictly for BC Ferries,” Rick told the Straight. “It’s not for anything else anymore because the money adds up.”

Agius hadn’t submitted her petition to BC Ferries when the Straight called for an interview. However, BC Ferries spokesperson Deborah Marshall said she was aware that ferry costs had risen in recent years. She told that Straight that since 2004 the cost of ferry trips on major routes had risen by 2.8 percent. On minor routes, such as the ones that Powell River’s children must take for soccer games, ferry costs have risen by 4.4 percent over the last four years.

Marshall said that BC Ferries gives Bowen Island high school students free rides to and from school, but that children’s sporting events are handled differently.

BC Ferries and Sport BC presently have a corporate partnership that aims to provide travel support to Sport BC member organizations and its member clubs.

According to the program’s application form, athletes and coaches can apply for travel assistance three times per year for a maximum of $400 per application.

That form also states, “All successful applicants will be required to write a letter, within 30 days of the completion of travel, to Sport BC to thank BC Ferries and to describe your Sporting Life on the Coast event.” A photo of the team should also be included.


--------------------------------------------------------------------------------

Source URL: www.straight.com/article-141240/powell-river-residents-want-free-ferry-rides-sports


(maybe we should all sign their petition when we're in powell river.)

[Kam]

Ya sure... and I should be able to ride for free when I have to take a ferry to PR for work. And what about when I visit family? And the trucks that bring the food to town should be allowed to ride for free. Oh, and red cars, red cars should be allowed to ride for free.

[Hardy]

Without sounding too cynical, as there is a discounted student rate, and Sport-BC is involved in trying to get more school-aged children involved in physical activities, and in order to reduce red-tape (ie: paying full fare, and then applying for a refund thru various organizations), I think the simplest solution would be for school-athletic organizations to approach BCFS ahead of their "season" and work out a discounted rate for the trips to and fro that are required for the 'team' when competing. This would apply to the athletes themselves, and the coaches and necessary assistants. Parents, unfortunately, unless they are part of the coaching/training staff, are out of luck. When it comes to multiple vehicles (ie: not a single vehicle like the team bus, but several parents vans etc) then some arrangement should be made ahead of time with the affected terminal manager for the discounted rate and the vehicles that qualify denoted as such.

I don't think something like that would be overly burdensome on the affected teams/organizations, nor BCFerries ... and it would simplify the paperwork dramatically. I don't know how Sport-BC would look down upon this, but from where I am sitting, it seems pretty simple to me ....

[Low Light Mike]

News story:

Smoke on the 'Rupert.......(but not in a deep-purple livery) ;D


======================
www.qciobserver.com/Article.aspx?Id=3239

Smoke but no fire as ferry delayed

The 134 passengers travelling from the islands to Prince Rupert on the Thursday night ferry sailing got a bit of a scare when they were called to muster stations shortly after the Queen of Prince Rupert left the dock.

The cause of the alarm was a coil in the control circuit of the bow thruster, which burnt out, causing a lot of smoke but no fire, said BC Ferries spokesperson Deborah Marshall.

The incident occured at 12:10 am April 18, just three minutes after the voyage had gotten underway.

Ms Marshall said the smoke was confined to the engine room area, but the passengers were mustered as a precaution.
Engineers determined the cause of the smoke and ventilated the area. After a half hour delay, the ferry resumed its route to Prince Rupert, she said.

The bow thruster is used in docking and is not required for most of the ferry operations, Ms Marshall said. New parts are on their way to Rupert and will be installed with no change to the ferry schedule. A tug boat has been standing by when the QPR is docking just in case it's needed.
========================

[WettCoast]

Perhaps they might want to have a tug boat standing by in Port Hardy to assist the NorAd with docking when there is a stiff north wind.

[Low Light Mike]

Here's an article/editorial by Keith Baldrey:

www.canada.com/abbotsfordtimes/news/opinion/story.html?id=ec9f1abf-ca29-4add-a8b2-a3bf7ac32391&k=36860
===============================
Ferry trip wallops my wallet

Keith Baldrey
The Times

Tuesday, April 29, 2008

Although I live on an island, I must confess I don't travel on a B.C. Ferry much these days. Business travel to the Lower Mainland usually means taking a float plane or a Helijet, and otherwise who needs to leave beautiful Vancouver Island anyway?

But I did take a ferry this past weekend, and while the service was top-notch, the cost left me thinking it might be quite a while before I board another one.

The round-trip cost for two people and a vehicle between Victoria and the mainland is now almost $140, and that figure will undoubtedly increase steadily in the next few years. Rising fuel costs alone are going to boost fares by a significant amount in the near future.

Of course, some routes have slightly cheaper costs, but others are considerably higher [an equivalent trip to the Gulf Islands is almost $160 on weekends].

While B.C. Ferries should be congratulated on the upgrading of its ancient fleet, one has to wonder whether the cost of travelling on the ferry system is now prohibitively high for many.

Can people with low or even middle incomes really be expected to willingly shell out hundreds of dollars for a couple of ferry trips each year? Visiting the grandparents on Vancouver Island for many people may soon be financially impossible.

And for people who commute on a ferry to work, the rising costs of travel are taking a bigger and bigger chunk out of their take-home pay.

Of course, we still have probably the best and cheapest ferry system in the world. This argument no doubt rings hollow for many. Consumers of products rarely compare what they're paying for here with something similar in a far-away country.

B.C. Ferries has to be asking itself at what point will steadily increasing rates lead to a significant drop-off in travellers, thus making any further fare hikes a counter-productive measure.

Ferry traffic has been basically flat for some time now. Only a handful of routes [the major ones between the mainland and Vancouver Island] break even financially. The rest are covered by high fares and that $130-million annual subsidy from the provincial government.

But financial considerations should be just one part of the equation that defines what kind of service B.C. Ferries provides British Columbians. Some think the ferry system is simply an extension of the highway system, and should be subsidized accordingly by taxpayers.

I don't buy that argument. Many people willingly choose to live on islands as a lifestyle choice, and sometimes there are added costs for that choice.

But it is reasonable to ask whether or not we have come to the point of rethinking the provincial government's financial responsibility for the ferry service.

B.C. Ferries is a semi-private company and as such has to keep an anxious eye on its financial bottom line.

Like any company in the private sector, it has simply passed on a good chunk of its rising fuel bill onto the consumer. But B.C. Ferries has a public service element at the core of its existence, and one can question whether or not the government subsidy should be increased to cover at least some of those fuel costs, which are the greatest cost-driver to ticket prices.

Adding spice to this argument is the B.C. Ferry board of directors' recent decision to award themselves incredible pay raises .

While the company has done an exemplary job of upgrading its fleet and terminals, thus making sailing the system more enjoyable, all that may become lost on passengers who see red when they make the inevitable connection between those director fee hikes and the alarmingly high cost of their ferry ticket.

B.C. Ferries may be approaching a watershed moment with the people it serves. If it continues to routinely hike ticket prices, we Island residents may increasingly just stay home.

- Keith Baldrey is chief political reporter for Global B.C.

© Abbotsford Times 2008
======================

[Balfour]

He makes a very good point there.

BC Ferries is unique in the sense that they think like a private business but they are still a public service. They have to keep the customers satisfied and keep the ships maintained, but at the time the prices need to be kept at a reasonable level. We can deal with prices going up with Inflation, but in my opinion, we shouldn't have to be paying BC Ferries Fuel bill as motorists already pay enough for gas.

[Low Light Mike]

From Canoe.ca

www.canoe.ca/Travel/Microgalleries/ferrys/

World's most enjoyable ferry rides

this is a photo-essay of 14 different ferry trips.

[Mill Bay]

Did anyone else notice that tuesday's province (for may 6th), second edition, had a header for a special pull out section on great getaways in B.C. that also included a picture of Queen of the North in expo colors right on the top right corner of the front page of the newspaper.

[Scott]

May 8, 2008 21:30:25 GMT -8 Mill Bay said:

Did anyone else notice that tuesday's province (for may 6th), second edition, had a header for a special pull out section on great getaways in B.C. that also included a picture of Queen of the North in expo colors right on the top right corner of the front page of the newspaper.

Yes, I noticed the article. It was about "cruising the Inside Passage" and referring to cruise ships, not the ferries, if I recall correctly. But the photo was of the Queen of the North.

[Low Light Mike]

Nanaimo Daily News seems to be doing more investigative / critical type articles on BCFS. Here's the latest Nanaimo-written article:

www.canada.com:80/nanaimodailynews/news/story.html?id=bd2a3cca-a105-468d-9968-4bf6c760aa94
==============

Critics say ferries must be public

Paul Walton
The Daily News


Wednesday, May 28, 2008


Issues of transparent governance are at the root of questions about conflicting interests for the chairwoman of the B.C. Ferries Authority and Services board.

Elizabeth Harrison is a partner with Vancouver law firm Farris, Vaughan, Wills and Murphy, which has also been giving legal advice about multimillion-dollar bond deals to the former Crown corporation.

No one has said Harrison has been involved with matters that put her personal interests in conflict with ferry authority, but critics say a more transparent operation would remove all doubt.

NDP ferry critic Gary Coons is concerned that there is no way to know if there is a conflict of interest, since the company reports to no one in government and comes under no scrutiny.

"I've had major concerns with both boards, they report to no one and are accountable to no one," said Coons.

B.C. Ferries spokesman Mark Stefanson said the board has very strict conflict guidelines and that the company started using the Farris law firm when it fought and won a property tax case years ago.

Harrison, who has been with the firm since 1978, had nothing to do with the hiring of lawyers in her firm around the bond issues, Stefanson said.

"Our board chair wasn't involved, he was selected by CIBC," said Stefanson. "Miss Harrison is very strict that if there is legal work involving us, she distances herself from it."

Jackie Miller, president of the B.C. Ferry and Marine Workers Union, said the possibility of Harrison being in conflict should have been dealt with when she became chairwoman. Miller suggested that a third party should look at the situation. But Miller said the situation reflects a lack of transparency and accountability at B.C. Ferries.

"The secrecy does nothing for Miss Harrison or the board of directors, or anyone else for that matter," said Miller.

Gregg Dow of Save Our Ferries also said someone needs to look at the possible conflict because B.C. Ferries is still owned by the province.

"We're the shareholder, why is everything so secret?" he asked. "The taxpayers of B.C. need to have more oversight in a company that they own."

These complaints come on the heels of last week's revelation that directors were making as much as $250 a minute for some meetings for the B.C. Ferry Authority that lasted no more than a few minutes.

The number of board members also appears to be going up from 12 to 16. That decision was made at a board meeting on Feb. 7.

[e-mail]

250-729-4230

© The Daily News (Nanaimo) 2008

[Low Light Mike]

Eveyone likes reading labour-relations news stories about BC Ferries.........

www.canada.com:80/theprovince/news/story.html?id=9d8023d5-d746-495e-93a3-71f9e9ccd9fd
=======================

Transsexual former B.C. Ferries worker not wrongfully dismissed

Ethan Baron
The Province


Thursday, May 29, 2008


A transsexual ferry worker was fired for shipboard errors, not because she used to be a man, B.C.'s human-rights tribunal has found.

Deborah Magnone, formerly Marshall John Magnone, took B.C. Ferries to the tribunal, alleging she'd been discriminated against on the basis of her transsexuality.

Hired in May 2004, she was fired that October, four days before completing her probation.

"Ms. Magnone says that she was terminated because the respondents knew that she was a transsexual," tribunal member Judy Parrack wrote in her decision on Magnone's complaint.

Magnone described discrimination which was "not overt," Parrack wrote.

"Ms. Magnone said that after she started working at B.C. Ferries, some of the employees started looking at her
'funny' and were talking about her," Parrack wrote.

The tribunal ruled that Magnone, who represented herself, failed to establish she was fired for being transsexual.

"This is mere conjecture on her behalf," Parrack wrote.

Parrack agreed with Mag-none's argument that transsexuals are marginalized and face societal discrimination.

But she accepted B.C. Ferries' argument that the corporation fired her because she "was not suitable for the position of deckhand."

On Sept. 12, 2004, Magnone was at the helm of the Queen of Saanich, with the 1,700-person capacity vessel approaching Swartz Bay on Vancouver Island. Magnone turned to port when ordered to turn the wheel to starboard, the tribunal heard.

The next day on the same ferry, Magnone was again at the helm, entering the Tsawwassen terminal, and had trouble steering as ordered.

"There was a hard landing of the ferry," Parrack wrote.

The impact didn't affect the vessel's seaworthiness, or hurt anyone, but "it could have resulted in injuries to passengers," Parrack's ruling said.

A month earlier, also on the Queen of Saanich, ferry officers confronted Magnone after she was eating in the crew area when she was supposed to be working on the car deck.

"Her response was to say, 'I was hungry, what's the big deal?'" one of the officers reported to the tribunal.

While dismissing her discrimination case, Parrack also said Magnone "clearly has significant mariner skills" and "given the opportunity, [would make] an excellent employee."
===============

[Neil]

Following up on that last article, a little chuckle from The Tyee:

A B.C. Human Rights Tribunal upheld the firing of a transsexual mariner from BC Ferries despite her claims of discrimination. The female mariner apparently had extensive skills and training back when she was a male mariner, but after the sex change was fired for steering a major vessel in the wrong direction. On the bright side, the tribunal found that since the sex change, she has been more willing to stop the ferry and ask for directions.

[Variable Pitch]

B.C. Ferries net earnings drop
Times Colonist
Published: Friday, June 13, 2008

Citing the cost of new vessels and upgrades to some of the existing fleet, B.C. Ferries reported an $11 million drop in net earnings for 2007.

The drop to $37.1 million from $48.8 million in 2006 comes despite increased revenues of $640.7 million for the fiscal year which ended March 31 compared with $596.3 million in 2006.

"This past year, we made significant capital investments in our fleet, including almost $320 million of a $542 million project for our three new Super C-class ships," said president and CEO David Hahn in a release. "These new ships, which are on time and considerably under budget, will provide a world-class travel experience for our customers for decades to come."

The corporation has determined it will invest retained earnings into the asset renewal program, and as a result it's expecting future earnings will continue to decrease in the near term.

The first new ship, the Coastal Renaissance, began service on March 8 on the Departure Bay-Horseshoe Bay route, with the Coastal Inspiration beginning service on Monday between Duke Point and Tsawwassen.

The third vessel, the Coastal Celebration, enters service between Swartz Bay and Tsawwassen in the fall.

"In addition to our major fleet renewal program, we are continuing to invest in our terminals to replace aging marine structures and ensure we are providing the best in safety and service for our customers," Hahn added.

Over the last year Ferries started a $9 million terminal expansion project at Swartz Bay and continued a $41 million project at Departure Bay.

Total capital expenditures for the year totalled $452.5 million well over the $262.6 million spent in 2006. Of that, $382.8 million was earmarked for new vessels, upgrades and modifications.

In addition to capital project spending, operating costs increased in 2007 to $569.6 million from $528.4 million in 2006.

Ferries is also warning there will be fuel surcharges coming in the future should oil prices remain at record high levels.

[DENelson83]

Here comes another fuel surcharge... I smell a vicious cycle coming.

www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20080617/BC_ferry_fuel_charge_080617/20080617/?hub=BritishColumbiaHome

[Mill Bay]

This isn't a fuel charge... it's a ploy to keep their net earnings from dropping any further. Nice scheme to bolster the bottom line Hahn, but everybody is already paying enough for gas.

Next ferry trip I'm going to present the ticket agent with a fuel surcharge for my cost in getting to their ridiculously remote terminal which just isn't in my back yard, making it inconvenient to patronize BCFerries.

And where does all that fuel go... Really...? They must drink diesel from champagne glasses at the board meetings.

Maybe if they bled off some dollar signs from those high octane board members, they might find they have a little extra money left over to cover a few more litres of diesel. The board members probably get their mileage paid anyway, so they are not paying for their gas, why should we?

[Political Incorrectness]

How about getting rid of someone's multi-million dollar salary and reduce administration. It saves a couple million dollars over time.

[D'Elete BC in NJ]

CBC's version:

www.cbc.ca/canada/british-columbia/story/2008/06/17/bc-ferry-fuel-hike.html

---

BC Ferries requests doubled rate increase for summer season

The cost of a trip on BC ferries may soon rise by as much as 20 per cent on some routes because of the jump in fuel costs.

David Hahn, the president and CEO of BC Ferries, told CBC News the current formula determining fare hikes doesn’t take into account fuel cost increases, which jumped 35 per cent in the last quarter.

"This is something well beyond BC Ferries, I mean this is a global situation. I don't think it's something that BC Ferries hatched up."

BC Ferries has asked the British Columbia Ferry Commission to add the surcharge from the next quarter, in October, to the fare increase July 1.

On April 1, a four per cent increase was added to all southern routes. If approved, the latest boost would see fares raised by eight per cent on major routes and 20 per cent on some of the shorter routes.

The cost of a car and one adult to travel fromTsawwassen, near Vancouver, to Swartz Bay, near Victoria, will increase to $60.48 from $56.

On a shorter route, such as from Tsawwassen to the Gulf Islands, a fare for a car and one adult would increase to $43.02 from $35.85.

Hahn said even with the rate increase, profits at BC Ferries will not go up.

"We don't make any profit on this, it's pure cost pass-through and I think people have to accept it for what it is," Hahn said.

When asked if the rate increase at the start of the summer had anything to do with the busy tourist season ahead, Hahn replied, "I could argue it’s better because we do hit the tourists rather than having people later on in the year subsidize that tourist that was here."

Hahn also said the ferry commission could reduce fares if the cost of fuel drops in the future.

An announcement on the increase request is expected soon.

---

My feelings on this below. ;D

[Northern Exploration]

With Air Canada chopping staff and just about every US Airline slashing routes and charging for everything except for toilet tissue in the washroom, this isn't surprizing. American Airlines is probably installing coin op washrooms on their planes as we speak.

[D'Elete BC in NJ]

Jun 18, 2008 11:57:40 GMT -8 Northern Exploration said:

With Air Canada chopping staff and just about every US Airline slashing routes and charging for everything except for toilet tissue in the washroom, this isn't surprizing. American Airlines is probably installing coin op washrooms on their planes as we speak.

Na, have to be full bills...coins weigh too much and would cost them more to transport ;D

[Low Light Mike]

From Nanaimo Daily News, June 21, 2008:

www.canada.com/nanaimodailynews/news/story.html?id=9ffdb3c5-e33d-43b5-8c56-b86c0f6d8b3d
======================

B.C. Ferries books under microscope of raging granny

Paul Walton
Daily News

Saturday, June 21, 2008

The most recent year-end results for B.C. Ferries have one B.C. grandmother breaking out her calculator.

And Nelle Maxey thinks the former Crown corporation may be headed for trouble, after drawing up some charts and graphs based on the figures released on June 12.

Maxey, a Raging Granny, first became interested in the inner workings of B.C. Ferries when she was living in Powell River and the Coastal Ferry Act became the centrepiece of taking the company private. She now lives in the Interior.

"I'm just concerned about the coastal communities, I read the act when if first came out and I was concerned," said Maxey.

With a background of 18 years in business, most of which required detailed analysis of government funding contracts, Maxey said she understands the documents better than most people.

"I'm very well-versed in corporatese," she said, "and how the Coastal Ferry Act is framed."

She thinks the act presents insurmountable problems to making B.C. Ferries a success as a private company, and said the biggest problem is the requirement that each route sustain itself.

"This was a move to privatize, but I think what has broken the system more than anything is not allowing the major routes to subsidize the other routes," said Maxey.

While net earnings from operations were $71 million, they owed $33 million on paying the interest on current loans. With total liabilities up with long-term debt, said Maxey, B.C. Ferries could be headed for trouble as they may not be able to continue paying the interest on the loans to the consortium of banks that have contracted mortgages to finance the company.

"Once those two lines (of declining earnings and rising interest payments) intersect, they may reach bankruptcy," said Maxey. "When you can't service your debt, your are in trouble."

B.C. Ferries president and CEO David Hahn did not concur with Maxey's analysis, though he said higher debt and lower income are a possibility.

"That could happen and we would still be OK," he said. "That is the money we have available to pay our debt."

He said they have closer to $130 million than $71 million, and Hahn accused Maxey of failing to understand how B.C. Ferries does its accounting.

But if debt does outstrip income, said Maxey, there are only two options for B.C. Ferries. The first is that the province bails them out -- "which makes you wonder why they privatized in the first place," she said.

The second option is that banks call in their loans and effectively own B.C. Ferries, though the province does have the first option to buy back the assets in that instance. Whether the province bails them out, buys back the assets from the banks, or they are sold to a third party, she said, it will cost the taxpayer.

"It will cost a lot of money because they are in so much debt," she said.

But Hahn said the plan has always been to generate enough income to cover the debt, and there is an "increasing appetite" from lenders.

"I don't think this is a surprise to anyone."

Maxey thinks that with the massive debt from the acquisition of the new ships and declining revenues, the objective of the Coastal Ferry Act -- to create an economically viable and competitive ferry -- can't work.

"This was really just the first in the privatization. If you read the act, it's just not going to work."

Another of Maxey's concerns is that the B.C. Ferry Commission is designed to oversee finances, not public interest.

"It's not like a normal regulatory commission, it's not a real regulator overseeing a monopoly to protect the public interest."

Maxey is also concerned about a figure absent from the year-end results, that of the number of full time equivalent employees per crew. The last figures were released in 2005-2006, and though Maxey has asked for the figures they have not been released to her. She can only go on anecdotal evidence that the number of FTEs per crew is falling. She said information from staff indicates a possible trend of increased overtime and less time off.

"When people have to cover without time off, then that would be a safety issue, which is serious."

Hahn said that B.C. Ferries has the figures, but claimed it would take a great deal of work to find them all on the 3,499 FTEs.

"I'm not going to release it per crew, I'm not going to the trouble," he said.

But he said that crewing remains adequate and safe.

"It's not a body, it's a skill set and requirements to meet Transport Canada requirements. That's the minimum and we often go over that," said Hahn.

But the promise of a better privately run ferry system, said Maxey, is not happening. "Our government told us we'd be better off if our ferries were run without government interference. And this is what we're seeing."

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© The Daily News (Nanaimo) 2008
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[Guest 101]

One main area of concern is the Loan from the German Trade Credit Bank. In general shipping terms - these types of loans are common - when you buy and trade vessel after a few years.

What I am talking about is - what we call "Balloon Loan" - where you pay the interest only - in this case - for the first 3 years - then on the 4th year you pay the capital amount which you didn't pay on those years, plus interest. So if you don't buy & sell vessels in the market - then you can expect a massive hit on the forth year.

We now have a mature market - with stable to declining ridership numbers, and massive increase in expenses. Fuel is not in this figure as they can keep going back and getting a surcharge. It is the general running cost of this old fleet.

In accounting terms we are at a break even. We have interest payments on the $950M Bonds - and now interest only on the $180M German Loan - {10 year deal} but come the forth year we need to make a capital payment - so where is it coming from?