October 3, 2023
BC FERRIES’ PRESIDENT & CEO ISSUES STATEMENT REGARDING BC FERRY COMMISSION PRICE CAP DECISION
BC Ferries’ President & CEO Nicolas Jimenez has released the following statement regarding the British Columbia Ferry Commission’s ruling and observations on the company’s next four-year business plan known as Performance Term 6.“BC Ferries gratefully acknowledges the Province’s $500 million contribution as integral to allowing the Commissioner to cap fare increases to 3.2% each year through to 2028. Rising operating costs are putting significant pressure on the system and this decision supports the ferry service operating in the public interest for the next four years.
“We understand the Commissioner’s concern about BC Ferries’ ability to deliver on our ambitious capital plan. We’re actively working to increase our capacity to deliver on this plan over the longer term as it is clear that significant investment is required in vessels, terminals and IT systems to meet the public’s expectations of a modern ferry service.
The Commissioner raises important concerns regarding the pressures facing the ferry system due to escalating costs and asset renewal. Designing a ferry system for the future will necessarily require a conversation with, and input from, all levels of government, communities, First Nations and transportation partners.”
Performance Term Six
April 1, 2024 through March 31, 2028
- Every four years, the independent BC Ferries Commissioner sets a price cap - the maximum permitted- ceiling for BC Ferries routes for the next performance term.
- BC Ferries makes a submission to the Commissioner to provide information to assist in establishing the price cap.
- The Commissioner takes into consideration revenues, operating, capital and administrative costs, as well as the service fees and service levels set by the Province in determining the price cap.
- Planning future ferry service involves BC Ferries, the provincial government and the BC Ferries Commissioner.
- BC Ferries is responsible for the delivery of ferry service along coastal B.C.
- The Provincial Government sets the level of ferry service the company offers and the amount it will contribute to the cost of service.
- The BC Ferries Commissioner regulates fares in accordance with the Coastal Ferry Act and balances the interests of customers with those of taxpayers, while protecting the financial sustainability of the ferry operator.
- BC Ferries is one of the largest ferry operators in the world based on passengers transported annually and transportation infrastructure, and carried 21.6 million passengers and 9.4 million vehicles during the fiscal year ended March 31, 2023.
- The company employs approximately 5,100 people, provides frequent year-round ferry transportation services to the west coast of Canada on 25 routes, currently supported by 38 vessels and 47 terminals, and also manages other smaller routes through contracts with independent operators.
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