Skip to content

Ferry losses escalate

Passenger traffic plunges to 21-year low

BC Ferries lost more than $16 million last year after traffic plunged to the lowest levels in decades.

The Crown corporation reported a net loss of $16.5 million for the fiscal year that ended on March 31. Last year, BC Ferries reported net earnings of almost $4 million, but noted results included a one-time gain of $9.3 million from the sale of the company’s former head office building.

Vehicle traffic dropped 3.5 per cent during the fiscal year, the lowest in 13 years, while the number of passengers fell 2.8 per cent, a 21-year low.

Revenues dipped by $1 million to $738 million, but operating expenses jumped by $10 million to $682 million, mostly because of higher fuel and amortization costs.

Last month, the provincial government implemented changes to the Coastal Ferry Act, which includes almost $80 million to help offset fare increases, but lays the foundation for cuts to ferry service.

Representatives of coastal ferry users issued a press release that stated they were not surprised by the results.

The Ferry Advisory Committee Chairs (FACC) said they were surprised at BC Ferries’ prediction of a return to profitability within two years.

“BC Ferries’ $16.5 million net loss is driven significantly by a drop in ferry traffic and the company’s prediction of profitability assumes traffic levels will stabilize,” the release stated. “The FACC does not see any sign this will happen in the foreseeable future.”

“With fares rising at least twice as fast as inflation, combined with the poor state of world economies and economic indicators, it’s hard to see how ferry traffic can stabilize in the next two years,” said Salt Spring FAC chair and economist Harold Swierenga.

The FACC believes the modest increase in contribution from the provincial government takes some of the pressure off fares, but it won’t be enough to reverse the traffic decline.

“Ferry traffic is an indicator of the well-being of the coastal communities,” said Southern Gulf Islands FAC chair Brian Hollingshead. “The most direct way to stimulate economic recovery in these communities is to encourage activity through affordable transportation. And that means ferry fares.”