Release from Bay Ferries:
FEBRUARY 19, 2019
UPDATE RE TRANSFER OF US OPERATIONS TO BAR HARBOR
Following is an update regarding key activities in connection with the transfer of US-side operations of the Nova Scotia-Maine ferry service to the Port of Bar Harbor.
• Today, a lease was entered into with the Town of Bar Harbor for the agreed portion of the ferry terminal property for purposes of the Nova Scotia-Maine ferry service. The base term of the lease is five years with guaranteed minimum annual rent of $264,000 CDN (based on $1.32 exchange rate).
The form of lease was originally approved by Bar Harbor Town Council on October 16, 2018.
• Bay Ferries has commenced a substantial renovation and upgrade project at the Bar Harbor ferry terminal which is being funded by the Province of Nova Scotia. Project components include demolition of existing outside Customs area and several outbuildings together with portions of the
interior of the ferry terminal building, rebuilding the Customs Plaza area including installation of various equipment and technology required by US Customs and Border Protection (“USCBP”), repairs to the existing pier, installation of a new fixed bridge section adjacent to the pier, and transfer of the floating ferry ramp structure from Portland to Bar Harbor.
• The rationale of this investment is the lowering of the annual cost of the ferry service, with resulting short-term payback.
• Substantial discussions with USCBP have taken place, and will continue as we move forward, concerning technical aspects of the renovation and upgrade project. USCBP technical approval is required regarding various aspects of this work. Bay Ferries is very grateful for the cooperation of USCBP in assisting with the advancement of this project on a much accelerated timetable.
• Bay Ferries, the Town of Bar Harbor, and USCBP continue to engage in planning for USCBP service in Bar Harbor once operations commence. Bay Ferries/Province of Nova Scotia will be required to make a contribution to the cost of this service under the USCBP Reimbursable Services Program.
• Bay Ferries anticipates beginning sales on February 25, 2019, with gradual ramp up of marketing campaigns through late winter and spring.
• As various negotiations and pricing processes are underway with a number of contractors, Bay Ferries does not wish to publicly comment on anticipated project costs at this time and has requested that the Province of Nova Scotia not do so as it could negatively impact the final cost borne by taxpayers.
