Post by ferryfast admin on Aug 29, 2011 9:48:34 GMT -5
Trouble for the ferry corporation likely means trouble for Nanaimo
Robert Barron
Nanaimo Daily News
www2.canada.com/nanaimodailynews/news/story.html?id=a8eaa234-5599-4ef3-a449-ed461dd9b14d
Monday, August 29, 2011
Dave Ilyn, owner of Nanaimo's Buccaneer Inn near the Departure Bay ferry terminal, has concerns about plans by B.C. Ferries to eliminate a number of ferry sailings from its major routes as a cost-cutting measure.
News that B.C. Ferries plans to cut back its ferry services on major routes between Vancouver Island and the Lower Mainland couldn't come at a worse time for Nanaimo.
B.C. Ferries announced last week that the corporation will ask the province for permission to cut as many as 400 sailings a year from major routes as a costcutting measure in an effort to slash a shortfall, projected to be as much as $40 million, during this fiscal year.
The cuts would affect off-peak months and not holidays, B.C.
Ferries' chief executive officer David Hahn said at the corporation's AGM on Wednesday.
Long weekends still may have additional sailings and there are no plans to cut trips on minor or northern routes, according to Hahn.
But with two major ferry routes operating from Nanaimo, as well as the ferry that serves Gabriola Island, the city may suffer much of the brunt of B.C. Ferries' reduction plans at a time when it is still struggling through hard economic times.
Residents depend on ferry services for quick and efficient transportation between the city and the Mainland for personal and business purposes, and hundreds of thousands of tourists from all across North America have traditionally used the ferries to access Vancouver Island.
As well, approximately 600 ferry workers reside and pay taxes in Nanaimo, and with negotiations soon set to begin on a new contract, efforts to also cut into staff time to help deal with the financial shortfalls has union officials fearing for the future of its members, as well as the Island.
Pascal Courty, an economics professor at the University of Victoria, said there's no doubt that reducing availability of ferries between Nanaimo and the Mainland will further harm an already beleaguered economy in the region.
"Increasingly isolating the Island by reducing ferry services will see less people doing business in Nanaimo," Courty said.
"B.C. Ferries is a monopoly that operates under no threat of competition so it doesn't see the need for innovations to its service to make it more efficient and competitive, which means that at times there are long waiting times for ferries while at other times, they run half empty. It's not a well-run corporation."
B.C. Ferries is expected to make an announcement on Sept. 19 specifically outlining what cost-cutting measures it intends to take to deal with its financial woes after the corporation hears back from the province on its proposals.
Overall, almost five million passengers and about two million vehicles used the two ferry runs between Nanaimo and the Mainland in 2009, according the latest available records.
But traffic on the routes have seen a steady decline for some time, with B.C. Ferries reporting that passenger numbers are now at their lowest level in 20 years, and vehicle traffic is at an 11-year low.
Many people claim that the corporation's decision to raise its fares as the economy worsened for many of its users is a major reason why B.C. Ferries is in financial trouble.
The fact that it now costs more than $100 for a family of four and their vehicle to travel one-way between Nanaimo and the Mainland on the ferries has caused many cash-strapped travellers and tourists to look elsewhere for recreational travel or cancel it completely.
Dave Ilyn, owner of Nanaimo's Buccaneer Inn, which is situated close to the Departure Bay ferry terminal, said he has seen a steady decline in ferry traffic for many years.
He said the possibility of more cuts to ferry runs between Nanaimo and the Mainland would be a further blow to travel and the local economy.
"Anything that gives the travelling public the perception that it is hard to get here hurts everyone," Ilyn said. "The increased fares and the possibility of further cuts to sailings is certainly not good for us."
Ilyn's concerns are shared by Amrit Manhas, a research analyst with the City of Nanaimo, who said limiting access to markets through service reductions or increasing fares "affects the bottom line for our businesses and makes us less competitive for new markets."
"We need solutions to transportation issues that don't leave Island communities at a disadvantage," Manhas said.
"Ferry service is essential for the 800,000 residents of Vancouver Island. We need to return it to being a public service, part of a regular provincial highway system that is paid for by all British Columbians as is other transportation infrastructure in B.C."
B.C. Ferries claims it will also encourage older workers to take early retirements and cut back on the use of casual workers as a means of helping deal with its deficit, and won't infringe on its workers' collective agreement.
But Richard Goode, president of the B.C. Ferry and Marine Workers' Union, said the collective agreement expires on Oct. 31, 2012, and he is concerned about the impending negotiations on a new agreement.
"The corporation is saying it has no money so I'm dreading those negotiations," Goode said from his Nanaimo office.
"We still haven't heard a word from B.C. Ferries on their plans and that shows what kind of a relationship the union has with the corporation."
RBarron@nanaimodailynews.com 250-729-4234
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DECLINING RIDERSHIP
DECLINING RIDERSHIP
Departure Bay Horseshoe Bay:
2005 ................................ 3,600,358
2006 ................................ 3,589,209
2007 ................................ 3,704,200
2008 ................................ 3,475,419
2009 ................................ 3,521,556
Duke Point Tsawwassen
2005 ................................ 1,358,686
2006 ................................ 1,361,921
2007 ................................ 1,392,073
2008 ................................ 1,562,048
2009 ................................ 1,477,435
SOURCE: CITY OF NANAIMO,
ECONOMIC DEVELOPMENT OFFICE