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July 5, 2010

Ottawa invests in the revitalization of Marine Atlantic Inc.

The Government of Canada is investing $521 million over the next five years to revitalize Marine Atlantic Inc. (MAI) and renew its fleet and shore facilities at North Sydney, Nova Scotia, Port aux Basques, Newfoundland and Labrador and Argentia, Newfoundland and Labrador. With this new investment, MAI has now approximately $900 million in government funding over the next five years to operate.

MAI operates three ferry terminals located at North Sydney, NS, Port aux Basques, NL, and Argentia, NL. These terminal sites include docks, wharves, piers, loading ramps and vehicle marshalling areas, as well as other structures, such as passenger terminals, ticket booths, maintenance facilities and administrative offices.

Most of these shore-facility structures were built in the 1970s or early 1980s and require upgrades to continue to operate safely and to enhance operational efficiency. The investment in MAI's shore-facilities will also include upgrades that will better accommodate the new Stena vessels that were chartered to replace the aging MV Caribou, and MV Joseph and Clara Smallwood.

On May 21, 2010, the Government of Canada and Marine Atlantic had announced that the Corporation had reached an agreement with Stena Group of Companies to charter two new vessels to replace the aging MV Caribou, and MV Joseph and Clara Smallwood. The new vessels, built in 2006 and 2007, will boost capacity; and bring about significant cost savings and operational efficiencies by lowering fuel costs and consumption. The vessels will significantly improve MAI's ability to provide on-time, reliable service and meet increasing traffic demand to transport traffic to and from Newfoundland and Labrador.

Marine Atlantic Inc. is a federal Crown corporation that reports to Parliament through the Minister of Transport. The Corporation provides a constitutionally mandated passenger and commercial marine transportation system between the Island of Newfoundland and the Province of Nova Scotia.