YPR Airport Ferry

The current financial plan projects $985,000 revenue and $1,789,000 expenses for the airport ferry, with the $805,000 loss being subsidized from city taxes. Do you think that the city should consider privatizing the ferry or adopting a user-pay system?

Gabe McLean

The airport ferry is an employer in our community and that is primary in any decision I would make. The ferry is also part of a tranportation system, but what system needs to be determined. Is it part of municipal street system providing access to the airport? Is it part of a provincial highway system? Can we negotiate or find cheaper access to Digby Island? We as taxpayers need some straight answers as to what responsibilities belong to whom. As a corporation our business decision should be operate on what you can afford. When the revenue can’t afford the expenses we need creative solutions to keep our access to the airport alive. I do not think privatizing or adopting a user pay system will compensate the losses being incurred. I would like to see a detailed examination of the Ferry Budget, Examination of all agreements made between the City and others with regard to the operation of the Ferry,Docks,Road,Island Access…………et al. Regardless of the results of this election it is time to justify the expense of operating the Digby Island Ferry to the public.
Anonymous

The current financial plan projects $985,000 revenue and $1,789,000 expenses for the airport ferry, with the $805,000 loss being subsidized from city taxes. Do you think that the city should consider privatizing the ferry or adopting a user-pay system?As is my thinking with all issues that involve taxpayers’ money, I think all options need to be considered. If there are ways to maintain the ferry service levels we require for the airport to remain viable, while lowering the cost to the taxpayer then we need to consider them. These options need to be investigated to find out if they are feasible. All the factors need to be weighed and evaluated.

I realize that we are subsidizing the ferry substantially at present, and that it is a substantial burden to our city. I believe that the ferry should be part of the provincial highway system, and that we should be actively lobbying the provincial government to take it over under their mandate. So far I am not optimistic about this happening however, I still believe we have to pursue the possibility. It is also important to consider the impact of creating a user pay system on the ferry in terms of the airlines. Our air service providers have been highly critical of any attempts by the city to increase ferry fares, which we have done in my time on council, because as the costs rise for the price to fly out of Prince Rupert, people either choose not to fly, or they choose to fly out of Terrace where they don’t have to pay for a ferry to the airport. We need to consider the reality that our air service providers could decide not to provide service to Prince Rupert if costs become too high, something that has been mentioned as a possible repercussion before. This does not mean that we shouldn’t look at more of a user pay system, just that we must be cognizant of the variables involved.

In the meantime, however, we need to look at viable options. Some ideas that would be worth considering are whether we could partner with Lax Kw’alaams in terms of operating the ferry service. Both of our governments are losing money on trying to provide a ferry service for our residents. Perhaps schedules could be worked out that would allow us to improve efficiencies and decrease the burden on the people in our communities. Another possibility is to increase ridership on the ferry. Considering the loss of waterfront access out at Ridley Island, perhaps we need to look at regional development of walking trails on Digby Island that link to the beaches located on the island. This could provide reasonable and affordable waterfront access for our citizens, as well as tourists, and help decrease the cost to the city. In addition, I believe we must continue to pursue the development of the Tsimshian Access project that would link our ferry service, on a shorter route, to Digby Island and then on to the outlying first nations villages through a road network. In doing this we would increase ridership on the ferry and lessen the amount of time and expense involved in running the ferry. Yet another possibility is to look for a partnership with business and industry interests such as the port, to increase the viability of our airport for commercial shipping use, and which would also increase ridership on the ferry.

As I stated earlier, I believe all efforts should be made to decrease the cost to the taxpayer for the airport ferry.
Speakkuppr

How about privatizing it and for that matter garbage collection as well?
Joy Thorkelson

The Prince Rupert Airport Ferry is a child of airline traffic. If air travel is up, ferry revenues are up, if air travel is down, revenues fall. The city once had a chance in the early 1980s to turn the ferry over to the Province. The Council of the time turned the deal down because the Ferry was a cash cow, turning a respectable profit every year. The breakeven point is around 80,000 passengers.

Council increased Airport Ferry fees in 2011 in an attempt to decrease the deficit. The problem is to balance the added per passenger cost on each ticket with the expense of alternate air travel through Terrace. To keep our airport functioning, we cannot increase ferry costs to the point that people choose not to use our airport. As our economy grows and air traffic grows the ferry deficit will reduce. In the first six months of 2011 the number of passengers increased by more than 4%.

The real solution to the airport ferry is to expand the reasons for its use. To this end, the Airport Authority is attempting to grow commercial airline traffic and the City is attempting to find funding to build docks that can handle large commercial loads. The Tsimshian Access Project- linking the communities of Metlakatla and Lax Kw’alaams to Prince Rupert by a road – to a bridge or ferry to Digby Island – then by via the Airport Ferry to Prince Rupert will also increase use. Hopefully, increased passenger and commercial traffic to YPR along with travelers from and to the Tsimshian Peninsula will put the ferry into a surplus position once again.

Privatizing the ferry will not solve the problem. Operators will not run the ferry at a loss and it is impossible to make a profit at the present number of passengers. Prices will have to rise substantially which will reduce traffic, leading to a downward spiral. Only the Terrace-Kitimat airport will win from that game. Why should Prince Rupert continue to subsidize the ferry? Because the airport is a necessary social and economic service that benefits all the citizens of Prince Rupert.

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YPR Airport Ferry

Skeena Institute