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Ferries finances improve

Traffic numbers down but profits on the rise

BC Ferries’ financial outlook is looking brighter, but the number of people buying tickets has fallen on all its routes.

The ferry corporation released its 2015 first quarter financial report on August 22.

Net earnings tripled in the first quarter of the 2015 fiscal year as fares rose, a fuel surcharge was introduced and controversial service cuts were implemented.

In April, new schedules were introduced for its northern and other routes in a bid to reduce operating costs and build a net savings of $14 million before the end of April 2016. BC Ferries provided 43,000 sailings, carrying five million passengers and two million vehicles, across all its routes in its first quarter, down from 46,000 during the same quarter last year (April 1 to July 31, 2013).

Net earnings for the ferry corporation, money left after paying operating expenses, taxes and interest, jumped to $13.9 million in the first quarter, up from $4.3 million in the same period last year.

First quarter revenues increased by 6.6 per cent to $213.1 million, while operating expenses increased by 2.1 per cent to $182 million, compared to the first quarter of last fiscal year.

The ferry corporation has a $3-billion capital plan to reinvest profits into assets, which includes replacing vessels, terminals and infrastructure over the next 12 years, said Mike Corrigan, BC Ferries chief executive officer. The 49-year-old Queen of Burnaby, which operates between Powell River and Comox, is one of two vessels slated for replacement in 2016.

Vehicle traffic across the system decreased 0.4 per cent while passenger traffic increased 0.3 per cent, as compared to the same quarter last year.

Traffic is down on all Powell River routes. Compared to the same period last year, vehicle traffic fell 1.27 per cent on the Saltery Bay-Earls Cove route, though passenger traffic increased 0.7 per cent. Vehicle traffic fell 2.61 per cent on the Westview-Little River route, and passenger traffic also fell 1.72 per cent. On the Blubber Bay-Westview route vehicle traffic fell 8.63 per cent and passenger traffic fell 5.63 per cent.

During the last five years adult fares have risen approximately 38 per cent on all routes serving Powell River. On the Westview-Little River route fares increased to $15.41 from $11.15 in 2009, while vehicle fares rose 26 per cent to $49.29 from $38.30. On the Westview-Blubber Bay route fares increased to $11.17 from $8.15 in 2009, while vehicle fares rose 27.5 per cent to $26.33 from $20.65. On the Saltery Bay-Earls Cove route fares increased to $15.46 from $11.30 in 2009, while vehicle fares rose 20.8 per cent to $48.24 from $39.95.

According to a media statement, the corporation was advised by the provincial government to “better align service levels with demand, and to ensure the coastal ferry system is affordable, efficient and sustainable.”