The federal government says it will purchase a ferry for the route between Nova Scotia and Prince Edward Island.
Prime Minister Justin Trudeau made the announcement in Charlottetown, adding that the government will build two new ferries for that route before 2028.
Trudeau says the federal government will purchase the MV Fanafjord to replace the MV Holiday Island, which caught fire last summer and was removed from service.
Transportation Minister Pablo Rodriguez says the price of the new ferry is still being negotiated.
The route between the two provinces is operated by Northumberland Ferries.
Ottawa says the new vessel is expected to enter service by May 2024 and will help Northumberland Ferries safely and efficiently serve communities on the East Coast.
Another vessel operated by Northumberland Ferries, the MV Confederation, has been plagued with mechanical issues and was pulled from the water twice between mid-June and early July. Since then, a second ferry, the MV Saarenaa, began operating for the tourist season.
This report by The Canadian Press was first published Aug. 23, 2023.