BC Ferry Commissioner sets Price Cap increase at 9.6 percent, though final number likely to be lower

The BC Ferry Commissioner has approved an increase for the
next four years, though the final number likely will change
to a lower increase when finalized in September

Travellers on BC Ferries got a glimpse of the scope of the financial challenges for the Ferry Corporation on Friday, that as the BC Ferry Commission authorized a potential price increase to be capped at 9.6 percent, though it's not likely to be the increase we will see as we board the ferries of the service through the next four years.

Ferries Commissioner Eva Hage noted of ongoing labour issues, rising fuel prices and a range of costs to go with an aging fleet in allowing for the near double digit increase.

“Facing labour difficulties and high inflation, BC Ferries is emerging from the current performance term (PT5) in less-robust financial shape than initially expected. And the next four years (PT6) will bring significant additional challenges. 

Continued labour supply issues, rising fuel prices, escalating costs associated with maintaining an ageing fleet, and a 12-year, $5.2- billion proposed capital plan driven by a need to replace vessels will create substantial pressure. Given this, we believe that a price cap of 9.2% is appropriate and necessary to allow BC Ferries to meet the demands of the upcoming performance term.”

However, some financial assistance on the way, to be provided by the Province will likely make for a reduction in the proposed rate hike.  The final rate on that is anticipated to be around the 3 percent mark for the next four years ahead.

As the BC Ferry Commissioner notes in the decision, the Province of British Columbia recently announced 50 million dollars in funding,  the money will go towards core costs like fuel, as well as to support initiatives to move toward electrification for the BC Ferries fleet.

The final decision by the Ferries Commissioner won't come until September, when the final rate will be set for the next four years.

More background on the BC Ferries Commissioner's report can be found from the BCFC website.

Further notes on Marine transportation on the North Coast and Haida Gwaii can be explored through our archive page.