PORTLAND, Maine — The province of Nova Scotia plans to give another $13 million (Canadian) to the Nova Star, a ferry service between Portland and Yarmouth, Nova Scotia, to keep the line operating in 2015.
With that, the province’s economic development minister, Michel Samson, said he expects Gov. Paul LePage to fulfill a commitment for Maine to provide the company a $5 million line of credit to operate through 2015.
“LePage committed that Maine would be a partner in this venture, and he was elected on that promise,” Samson said Wednesday during a news conference. “It’s on record saying that he would bring $5 million to the table.”
Adrienne Bennett, spokeswoman for the governor’s office, said the governor still intends to present such a bill to the Legislature but is not ready to discuss specifics.
During the 2014 sailing season, Bennett said, the administration and Finance Authority of Maine “exhausted all nonlegislative alternatives” to getting the company that line of credit and that the state has invested about $20 million to upgrade the Portland ferry terminal. The upgrade also allowed the city to host larger cruise ships.
The announcement that the Nova Star will continue to operate in 2015 comes after ridership fell short of projections during the ferry’s first season. Mark Amundsen, head of Nova Star Cruises, projected the service would bring in about 100,000 passengers. It had about 59,000.
The service also was expected to use just $12 million of $21 million (Canadian) in subsidies from the province in its first season. By year’s end, the province had given the ferry service $28.5 million, including a $5 million allotment through a new agreement at the end of the season and another $2.5 million to support its costs through the winter.
The company attempted to find winter work for the ship, but the Nova Star has split time between Nova Scotia and Charleston, South Carolina, where it is now docked.
A recently released audit showed the company spent $30.2 million to pay for its first season, from the start of service through September.
Samson said the ship is expected to have a better run this year as it has already booked about 50 bus tours and will start taking reservations immediately. With that, the ferry’s operators also tweaked the schedule, starting in June instead of mid-May and ending in mid-October. The service ended early last year — in October — cutting short its original plan to run until Nov. 2.
The company also made changes to its fares, which vary by the day of the week and the time of the season. A round-trip ticket Saturday, July 18, checked Wednesday, would cost about $268 for an adult. Round trips before June 30 or after Sept. 8, traveling between Monday and Wednesday, would cost as low as $188, with additional costs for a cabin, a seat and bringing vehicles on board.
All fare prices are in U.S. dollars, which is much stronger than the Canadian dollar, the loonie. The loonie is worth 80 cents in U.S. currency. Samson said he hoped that exchange rate and low gas prices would entice U.S. visitors to decide on a Canadian vacation aboard the ship this coming summer. For Nova Scotia residents, the ferry plans to offer a 10 percent discount on fares.
But beyond 2016, Nova Star will perhaps have to compete with other hopeful operators for the Maine-Nova Scotia ferry run. Two companies submitted proposals to the province after the conclusion of the 2014 sailing season, but Samson said they would have cost significantly more to start from scratch than continuing to run the Nova Star.
“We want the best ferry service at the best price,” Samson said.
To cut costs, Samson said the Nova Star operators also explored finding a new, smaller vessel — and were close to a deal — but the condition of that other ship and threat of losing the 2015 sailing season scuttled that consideration.
The province also plans to implement stricter requirements to keep tabs on spending by Nova Star Cruises in the 2015 season. The province will require year-end audits, provide funding only after approved expenses and future costs are verified, a monthly review of the company’s ledger and oversight of management salaries.
The company also will be required to publicly report passenger numbers by the 15th of each month.