The Cat ferry set sail from Yarmouth on Friday for its third season, but its future in Portland, Maine, is uncertain.
The owner of the high-speed ferry service, which is subsidized by the Province of Nova Scotia, is considering moving its American port of call to Bar Harbor.
The CEO of Bay Ferries Ltd. confirms that preliminary talks are being held to explore the possibility, and the first steps forward in the process could come as early as Tuesday.
That’s when residents will vote on whether to borrow US$3.5 million to purchase the ferry terminal property from the State of Maine. The town is exploring development options that include cruise ship berths and an international ferry terminal.
The Cat ferry travelled between Yarmouth and Bar Harbor from 2006 to 2009, but an international ferry link to the Maine tourist town dated back to the 1950s.
READ MORE: Nova Scotia to fund $1.5M in security upgrades to Maine’s CAT terminal
Bar Harbor town manager Cornell Knight says Bay Ferries has estimated it will cost US$3 million to upgrade the terminal for its use, and that the company has offered to front the cash needed to make that happen.
“The town of Bar Harbor had international ferry service for many years and it would be nice to bring back that Canada connection and bring in revenue to help fund the cost of developing the site,” Knight said in an email to Global News.
Get daily news
“Assuming there is a positive vote next week, the town council will begin to study the next steps this summer.”
Bay Ferries CEO Mark MacDonald called Bar Harbor a very strong market for ferry passengers, and said in an email that the location is appealing due to the “approximately 3.5 million visitors to Acadia National Park each year.”
The Nova Scotia government inked a 10-year agreement with Bay Ferries to restart the service back in 2016. The transportation department says the subsidy agreement is “based solely on the service going from Yarmouth to Portland,” but a spokesperson did not rule out a change in destination.
The department’s executive director of finance, Diane Saurette, tells Global News that there would be a significant savings in annual operating costs for Bay Ferries if the service were to move. Bar Harbor is closer to Nova Scotia and the move would reduce fuel costs.
“I don’t want to say it’s exciting, but there’s opportunity there and so we have to look at — both Portland and Bar Harbor are great ports. There (are) advantages and disadvantages to both.”
Saurette says the province and Bay Ferries are in preliminary discussions about the ferry’s future.
“We would also have those discussions with the town (of Bar Harbor) in terms of the type of contract, because we would be looking for a long-term contract,” she said. “We want that sustainability and consistency that certainly helps from a tourism perspective, and our bus tours, and things of that nature.”
Meanwhile, the lease agreement between Bay Ferries and the City of Portland is for one year. The current lease, obtained by Global News, expires on Nov. 15, 2018. Bay Ferries has an option to renew for another year, and has to notify Portland by October 15.
WATCH: Nova Scotia says low ferry numbers won’t put taxpayers on the hook for more cash
MacDonald says that the company still maintains a “very positive relationship” with the City of Portland and that they’re always looking for the best model for the ferry service.
He says an extensive redevelopment of the downtown Portland waterfront is in the works, and the availability of the current Portland ferry terminal is another reason to consider moving to Bar Harbor.
“We must examine all options,” MacDonald said.
In the meantime, the Nova Scotia government put up nearly $1.5 million earlier this year to upgrade the Portland ferry terminal, as ordered by the U.S. Customs and Border Protection Agency. The agency had warned that without nearly US$7 million in upgrades, the facility would not meet federal standards.
Saurette said the province’s investment was in equipment required to keep the ferry running this year. She said the equipment is portable and could be moved if need be.
The lease agreement shows that the City of Portland did not fund any of the upgrades.