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    Terminal and Shore Facility Improvements read more news
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Terminal and Shore Facility Improvements

Terminal and shore facility improvements

MAI operates three ferry terminals located at North Sydney, NS, Port aux Basques, NL, and Argentia, NL. These terminal sites include docks, wharves, piers, loading ramps and vehicle marshalling areas, as well as other structures, such as passenger terminals, ticket booths, MAIntenance facilities and administrative offices.

Most of these shore-facility structures were built in the 1970s or early 1980s and require upgrades to continue to operate safely and to enhance

operational efficiency. The investment in MAI’s shore-facilities will also include upgrades that will better accommodate the new Stena vessels that were chartered to replace the aging MV Caribou, and MV Joseph and Clara Smallwood.

New funding of approximately $68 million in addition to $16 million in previously approved projects brings the Government of Canada investment in MAI’s terminal and shore facilities in North Sydney, NS, and Port aux Basques and Argentia, NL to nearly $84 million in funding over five years. The improvements include the following:

North Sydney, NS - $36 million

  • Redevelopment of terminal site including construction of a new terminal building to increase operational efficiency and improve measures related to the safety and security of passengers and personnel
  • Upgrades to the dock area to enhance operational safety and efficiency
  • Acquisition of new terminal equipment

Port aux Basques, NL - $31 million

  • Improvements to the terminal site including upgrades to the terminal building
  • Acquisition of new terminal equipment
  • Upgrades to the dock area to provide enhanced safety measures as vessels dock
  • Upgrade of the existing main ramps to enhance operational efficiency

Argentia, NL - $4 million

  • Renovations at terminal site, including terminal building, parking lot and loading area with respect to the continued safe operation of the facility
  • Safety upgrades at dock to assist with the docking of a vessel at Argentia

IT Infrastructure and other Emerging Capital Projects - $13 million

  • An additional $13 million has been allocated for major upgrades to information technology infrastructure and emerging projects at each of the Corporation’s sites.

Fleet Upgrade

On May 21, 2010, the Government of Canada and Marine Atlantic announced that the Corporation had reached an agreement with Stena Group of Companies to charter two new vessels to replace the aging MV Caribou, and MV Joseph and Clara Smallwood. The new vessels, built in 2006 and 2007, will boost capacity; and bring about significant cost savings and operational efficiencies by lowering fuel costs and consumption. The vessels will significantly improve MAI’s ability to provide on-time, reliable service and meet increasing traffic demand to transport traffic to and from Newfoundland and Labrador.

The MV Atlantic Vision has been chartered until fall 2013. The vessel will service the Argentia-North Sydney ferry route beginning in 2011.

The MV Leif Ericson, primarily a dedicated commercial ferry will undergo an extensive midlife refit of approximately $18 million over the next twelve months.

Commencing in the summer of 2011, with the addition of the two Stena vessels, theMV Atlantic Vision and the upgraded MV Leif Ericson, Marine Atlantic will have the capacity in a reliable, modern fleet to carry the traffic.

In total, $308 million in new funding is planned to be spent on the fleet over the next 5 years.

Ongoing Operating Subsidy

Marine Atlantic operates with a significant annual operating subsidy funded by the Government of Canada to cover a significant portion of the Corporation’s operating costs and all of the other corporate costs such as annual pension payments. New funding of approximately $145 million has been approved over the next five years for these accounts which when added to previously approved funds brings the total operating subsidy over the next five years to approximately $408 million. When combined with funding for the terminal and shore facility improvements, fleet upgrades, Information Technology infrastructure and other emerging capital projects it brings the total government funding to MAI to approximately $900 million over five years.

July 2010




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