BC Ferries announced the vessel serving the Swartz Bay – Salt Spring Island route, the SKEENA QUEEN, will be undergoing a mid-life upgrade from Oct. 28, 2019 to mid-March, 2020. This mid-life upgrade is necessary to provide required maintenance on the vessel and enhance the customer experience.
BC Ferries Raises $250 Million In Bond Financing
BC Ferries announced the closing of a CAD $250 million senior secured bond issue. The privately placed bonds, which are rated A (high) by DBRS and AA- by Standard & Poor’s, were sold to institutional investors across Canada. The bonds bear interest at 2.794% per annum and are due October 15, 2049.
BC Ferries will be building at least four new ferries to replace four existing vessels (see also in financial news). The company started a ‘conversation’ with the customers, with more than 9,600 people who responded online and 1,700 taking part in sessions on board the ships and in community workshops.
The first phase of engagement focused on nine topic areas, including: accessibility, pedestrians and cyclists, pet spaces, outdoor spaces, food and beverage, family spaces, new amenities, technology, and additional thoughts and key considerations like sustainability and future flexibility to meet changing needs.
Feedback included, for example, requests for more space and amenities for pet owners, more diversity in fresh food choices, improved areas for bicycle storage and quiet areas away from technology and noise, among other topics.
BC Ferries released its Q1 results for the three months ended June 30.
Passenger and vehicle traffic levels are the highest the company has ever experienced in a Q1.
Net earnings for Q1, 2020 were CAD 12.2 million (6.0 million)
In this quarter, BC Ferries invested CAD 26 million as part of its 3.9 billion 12-Year Capital Plan that is focused on replacing ships and upgrading terminals. “We need to replace half of our fleet over the next 15 years as we incorporate clean technology and increase capacity,” said Mark Collins, BC Ferries’ President and CEO.
A serious discussion is going on to see whether BC Ferries could sell alcohol onboard its ferries.
Non-drinkers worry about the impact of impaired drivers on the roads.
According to a Euro2day article (in Greek), the Attica Group is in the process of concluding a 5-year bond loan from the domestic market within July. The goal is to raise funds from EUR 100 to 170 million. The 100 million of that loan will be used to repay existing bank loans (pp. Fortress’s loans were repaid at the end of last year) and therefore high-value pre-payments will be removed. Another EUR 25 million will be made available for investments to ship scrubbers in order to meet the new EU stricter standards. If additional funds are raised (up to EUR 45 million), they will be used for general business purposes.
BC Ferries’ report of the fiscal year ending on 31 March 2019, sees the following highlights:
- Consolidated net earnings of $52.2 million for fiscal 2019 ($59.9 million)
- Highest vehicle traffic levels ever
- Passenger traffic levels were the second highest in the company’s history.
- Increase in operating because of higher bunker prices, wage rate increases and higher depreciation. As a result, total operating expenses increased $36.4 million from $784.3 million to $820.7 million.
BC Ferries invested:
- $133.5 million in vessel upgrades and modifications
- $49.0 million in new vessels
- $28.2 million in information technology
- $19.5 million in terminal building upgrades
- $10.9 million in terminal marine structures
BC Ferries now has five vessels operating on LNG, and is looking at all possible “green” solutions. It currently has two Island Class electric battery hybrid ships under construction. When electric technology matures and electricity is available in the quantities required, BC Ferries plans to operate them as fully electric ferries.
BC Ferries also continues to focus on fare affordability.
Damen Launches Two Road Ferries For BC Ferries
In the space of just a few weeks, two, 81m road ferries for BC Ferries have been launched at Damen Shipyards Galati and are now being fitted out. Once operational they will be capable of carrying up to 300 passengers and crew, and 47 vehicles.
The ferries have been built to Damen’s Road Ferry 8117E3 design and the order was secured following an extensive, multi-phased, international tender process. BC Ferries is currently undertaking a fleet renewal programme. The twin Damen Road Ferry 8117E3 will serve the Northern Gulf Islands off the coast of Vancouver, replacing vessels that are now over fifty years old
BC Ferries will be building up to five new ferries to replace four existing vessels and
invites customers and communities to join conversations about the new vessels and to provide input
that will help shape their future onboard experience.
The new ships are being specified to deliver enhanced environmental sustainability and offer flexibility to meet
changing travel demands into the future.
BC Ferries expects the new ferries to enter service in the mid2020s.
The Review of Coastal Ferry Services confirms that the coastal ferry service is a vital part of the provincial economy and critical to both those who use ferry services and for the province as a whole.
BC Ferries President and CEO Mark Collins appreciates the review concluding that “BC Ferries is on the whole a well-run company.”
The review also recognizes that “employees and managers are committed to providing a safe, reliable service for the coast and work hard at it every day of the week” and “Board of Directors take seriously its obligation to provide good strategic direction and oversight.”
BC Ferries acknowledges and appreciates the financial contribution the Province made over the past year, along with contributions from BC Ferries, to fare affordability and helping to keep fares flat and lower fares on some routes.
