The Daily News
Saturday, August 30, 2008

At some point, the business model is going to need a major readjustment.

This week, B.C. Ferries posted its first quarter results for 2008, showing a dramatic $6 million drop in earnings compared with last year with total expenses, apparently mostly fuel related, outpacing revenues.

Net earnings were $8.4 million for the three months ended June 30, 2008 compared to $14.4 million during the first quarter in the previous year, according to B.C. Ferries.

Also in the first quarter of this year, revenues increased 7.6% to $171.9 million. But total expenses increased 12.4% to $163.5 million, compared to the first quarter last year.

Despite an increase in vehicle traffic, earnings are projected to be lower.

That's certainly not a trend that can be sustained for along period of time.

Not too long ago, the Daily News talked with a keen observer of the ferry situation, who painted a bleak picture, thanks mainly to the Coastal Ferry Act.

She thinks the act presents insurmountable problems to making B.C. Ferries a success as a private company, and said the biggest problem is the requirement that each route sustain itself.

What may have been a move to privatize has created big problems because the major routes cannot subsidize the others.

Basically, declining net earnings and long-term debt to facilitate means big trouble.

Couple declining earnings and rising debt payments, and bankruptcy is a possibility.

Even then, B.C. Ferries president and CEO David Hahn, though he did not agree with the observer's analysis, said higher debt and lower income are a possibility.

If the worst scenario played itself out, the only options for the ferries system would not be overly palatable.

First, the province could bail them out, which would make the decision to "privatize" them in the first place a complete failure.

Second, the banks could call in their chips and essentially own B.C. Ferries, though the province has first option to buy back the assets.

Either way, it would cost the taxpayer.

As it is, the system cannot continue to run in the same fashion.

One solution would be to return B.C. Ferries to its status as a Crown corporation, as it was before 2003.

Since the government is the sole shareholder in the "private" company, it makes a lot of sense.

The government (read: taxpayers) forks over more than $100 million each year to keep the ferries running.

So either have the government truly run it again, as part of the highways system (the original intention) or get their fingers out of the pie.

Perhaps one solution would be to allow some real competition for the service.

The major routes (Nanaimo, Duke Point and Swartz Bay to the mainland) appear to be doing just fine.

Many of the smaller routes are not.

There has been some talk about contracting the routes out ("alternate service providers").

While that might be deemed as unfair to some of those folks on the smaller islands, at some point there may be little choice.

Competition works well in many instances and many places, but the government also knows it would result in a significant upheaval.

And therein lies the rub.

Is that potential outcry preventing a real solution?

If the service is indeed going to a public one, it has to be just that. The taxpayers will continue to bail out the money-losers.

If it's not, and there is going to be competition on the smaller routes, then that should be the direction taken.

Someone needs to make a decision, because the current model clearly doesn't work

© The Daily News (Nanaimo)

Poor economy partly to blame
Robert Linden, VICTORIA (NEWS1130)

Saturday, February 21st, 2009 9:04 am

VICTORIA (NEWS1130) -
BC Ferry Services has posted a third quarter net loss that is almost double the net loss posted for the same period last year.

The loss is $14.6 million for the three months ending on December 31st.
The net loss for the same three months in 2007 was $7.8 million.

There's been a general decrease in traffic on BC Ferries during all three quarters of the current fiscal year compared to the same period last year.

BC Ferries says its because of "deteriorating economic conditions and volatile fuel prices."

VICTORIA (NEWS1130) - on the internet @ -
http://www.news1130.com/news/local/more.jsp?content=20090221_114917_5688

by Laura Walz
Powel River Peak
Wednesday, September 3, 2008
12:16 PM CDT

Mayor Stewart Alsgard has waded into the debate about BC Ferries.

“I believe the Coastal Ferry Act is failing,” Alsgard said during the August 26 City of Powell River council meeting. “I believe while we have concerns with the service that’s delivered by BC Ferries’ ships, what we’re really having to deal with here is the BC Ferries Act itself and the minister that is responsible.”

Powell River Regional District board chair Colin Palmer has taken the initiative to organize elected officials from other minor-route, ferry-dependent communities on the BC coast to travel to Victoria to talk to provincial leaders about rising fares. Alsgard said the plan is to meet with Premier Gordon Campbell, Kevin Falcon, BC’s minister of transportation, and perhaps other ministers. City council supports that initiative, Alsgard added.

“We pay a premium to live in this community,” Alsgard said. “We don’t take kindly to political remarks such as, ‘Well you chose to live there, therefore you make sure you absorb the cost.’”

The issue wasn’t about battling either BC Ferries or the province, Alsgard added. “It’s about exposing a mechanism that is failing and needs to be addressed. Politically, we’re going to address that and we’re going to do it effectively and we’ll do it when the timing is right. The timing is very near.”

On August 1, BC Ferries applied a 17.6 per cent fuel surcharge on minor routes serving the southern and northern Gulf Islands and Powell River. The fuel fee followed fare increases on April 1 and in November last year.

On August 28, BC Ferries reported net earnings of $8.4 million for the three months ending June 30, 2008, a $6 million decline from the $14.4 million earned during the same period last year.

Revenues increased 7.6 per cent to $171.9 million while total expenses increased 12.4 per cent to $163.5 million, compared to the first quarter last year.

The increase in expenses was largely due to a $10.4 million increase in fuel expenses, as well as a $7.9 million increase in interest and amortization expenses reflecting BC Ferries’ ongoing significant investments in its fleet and other infrastructure.

The company said it continues to be concerned that high fuel prices and recent fuel surcharges could cause a decline in future travel. It said it will implement “various measures” to cut its costs over the rest of the fiscal year.

During the company’s annual general meeting in Delta on August 27, Gibsons Mayor Barry Janyk asked David Hahn, BC Ferries president and CEO, if the company would join with ferry-dependent communities to study the impact of rising fares on their social fabric.

Hahn said no and pointed out the company’s role was to manage the system and its expenses. BC’s government was responsible for policy, he added.

by Laura Walz, © Powel River Peak

By Paul Walton.
Nanaimo Daily News
Saturday, June 21, 2008

The most recent year-end results for B.C. Ferries have one B.C. grandmother breaking out her calculator.
And Nelle Maxey thinks the former Crown corporation may be headed for trouble, after drawing up some charts and graphs based on the figures released on June 12.

Maxey, a Raging Granny, first became interested in the inner workings of B.C. Ferries when she was living in Powell River and the Coastal Ferry Act became the centrepiece of taking the company private. She now lives in the Interior.
"I'm just concerned about the coastal communities, I read the act when if first came out and I was concerned," said Maxey. With a background of 18 years in business, most of which required detailed analysis of government funding contracts, Maxey said she understands the documents better than most people.

"I'm very well-versed in corporatese," she said, "and how the Coastal Ferry Act is framed." She thinks the act presents insurmountable problems to making B.C. Ferries a success as a private company, and said the biggest problem is the requirement that each route sustain itself.

"This was a move to privatize, but I think what has broken the system more than anything is not allowing the major routes to subsidize the other routes," said Maxey.

While net earnings from operations were $71 million, they owed $33 million on paying the interest on current loans. With total liabilities up with long-term debt, said Maxey, B.C. Ferries could be headed for trouble as they may not be able to continue paying the interest on the loans to the consortium of banks that have contracted mortgages to finance the company.
"Once those two lines (of declining earnings and rising interest payments) intersect, they may reach bankruptcy," said Maxey. "When you can't service your debt, your are in trouble."
B.C. Ferries president and CEO David Hahn did not concur with Maxey's analysis, though he said higher debt and lower income are a possibility.

"That could happen and we would still be OK," he said. "That is the money we have available to pay our debt." He said they have closer to $130 million than $71 million, and Hahn accused Maxey of failing to understand how B.C. Ferries does its accounting.

But if debt does outstrip income, said Maxey, there are only two options for B.C. Ferries.

The first is that the province bails them out -- "which makes you wonder why they privatized in the first place," she said.

The second option is that banks call in their loans and effectively own B.C. Ferries, though the province does have the first option to buy back the assets in that instance.

Whether the province bails them out, buys back the assets from the banks, or they are sold to a third party, she said, it will cost the taxpayer. "It will cost a lot of money because they are in so much debt," she said.

But Hahn said the plan has always been to generate enough income to cover the debt, and there is an "increasing appetite" from lenders. "I don't think this is a surprise to anyone." Maxey thinks that with the massive debt from the acquisition of the new ships and declining revenues, the objective of the Coastal Ferry Act -- to create an economically viable and competitive ferry -- can't work.

"This was really just the first in the privatization. If you read the act, it's just not going to work." Another of Maxey's concerns is that the B.C. Ferry Commission is designed to oversee finances, not public interest.

"It's not like a normal regulatory commission, it's not a real regulator overseeing a monopoly to protect the public interest."

Maxey is also concerned about a figure absent from the year-end results, that of the number of full time equivalent employees per crew. The last figures were released in 2005-2006, and though Maxey has asked for the figures they have not been released to her. She can only go on anecdotal evidence that the number of FTEs per crew is falling.

She said information from staff indicates a possible trend of increased overtime and less time off. "When people have to cover without time off, then that would be a safety issue, which is serious."

Hahn said that B.C. Ferries has the figures, but claimed it would take a great deal of work to find them all on the 3,499 FTEs. "I'm not going to release it per crew, I'm not going to the trouble," he said.

But he said that crewing remains adequate and safe. "It's not a body, it's a skill set and requirements to meet Transport Canada requirements. That's the minimum and we often go over that," said Hahn.

But the promise of a better privately run ferry system, said Maxey, is not happening. "Our government told us we'd be better off if our ferries were run without government interference. And this is what we're seeing."

PWalton@nanaimodailynews.com ©

© The Daily News (Nanaimo) 2008

MetroValley Newspaper Group

Wed 27 Feb 2008 Page: 001 Section: Bowen Island Undercurrent - News

By STEVEN HEYWOOD News Editor

A significant portion of the B.C. economy relies on BC Ferries -- one of the reasons behind the corporation's expansion plans, starting with updating the fleet.

"Twenty per cent of the B.C. economy is ferry-dependent," said the company's vice-president of public relations Mark Stefanson at the Feb. 20 Qualicum Beach Chamber of Commerce meeting. "Almost everything we had on our dinner plate tonight probably came on a BC Ferry."

To maintain their service levels, Stefanson said the corporation is on an estimated $2.5 billion program to replace its old ships and terminal buildings.

That means new buildings in Nanaimo's Departure Bay, for one, and 26 new ferries. Six new ships are either afloat (the three, new Coastal class vessels are to go in service this year) or in the works.

"This is the largest acquisition program by any ferry company in the world," Stefanson said. "We have an old fleet. The fast ferries project put the company back 15 years."

That program saw the building of three new vessels -- all of which failed in B.C. waters and have since been docked or sold off.

Bringing new ships online, Stefanson continued, means the company will be selling older vessels and will have access to extra ones should the need arise.
Right now, mechanical or other problems means sailing delays and a frustrated traveling public.

The ferry replacement program is the most visible part of growth in the company. Stefanson said there is plenty of movement among personnel, including the departure of what he termed bad apples within BC Ferries.

Business for the corporation hasn't been completely rosy --
the Queen of the North struck an island and sank two years ago as it sailed from Prince Rupert to Port Hardy.
BC Ferries had to move fast to find a temporary vessel to replace the service.

Current construction work will see a permanent replacement in the water in a year or two.
In Nanaimo, a new terminal building at Departure Bay should be complete in four months, Stefanson said. It will be a smaller version of the structure at the Tsawassen terminal.

By March 7 or 8, he said the new Coastal Renaissance will start service between Nanaimo and Horseshoe Bay in North Vancouver.

Asked by chamber members about late night cargo and passenger-only ferry service, Stefanson said the company looks at many options, yet improving existing service is BC Ferries' president David Hahn's top priority.
"We have to clear away the hassle factor."

Stefanson added the company has been in a deep hole for years and is still in a huge transition period. "We are open to other partnerships but we are starting with a BC Ferries upgrade ... and then we can look beyond."

© Bowen Island Undercurrent

By Chris Montgomery
02-16-2009 On the Waterfront

I posted an item earlier today looking at some of the fallout of the economic slump on the maritime world.

One of the items noted that vessel prices are tanking as companies run out of cargo to ship and therefore run out of cashflow. And one of the examples I mentioned was a group that's angry their ferry service between Swansea and Cork went bust. Cancellation of the route took a big bite out of freight service and, more importantly, the tourist trade for both the Welsh and Irish districts on each end of the route. The Irish side, a tourist mecca, was especially hard hit.

The group that formed to fix things is a broad spread of businesses and community groups that put together a concrete look at the business impact of the lost service. They've found a potential operator and a vessel and are setting about raising the $4 million US they need to proceed with launching a new service. As I noted, the previous operator pulled out after its deal to buy a 22-million-pound replacement ship for the route fell through in 2007. The new group has found a suitable ferry for just nine-million pounds that's up for auction at month's end.

And that's where my thoughts turned to B.C.

I understand why BC Ferries' new German-built Super Cs cost so much. The orders were placed and the deal was rolling before anyone's recession radar went up. And they were built at a time when yards were booming and people were making millions just auctioning off their slots in the yards to companies more pressed for time. (BC Ferries was one of the companies in a hurry. It wasn't much talked about, but I believe it paid a huge amount to leap into a Turkish company's slot months ahead of when it was originally booked. That's by my memory, anyway.)

But there's no excuse for the cost of the other ferries. Or the present refits.

For competent economic analysts, the stormclouds started to gather in August of 2007. People who knew what they were doing, and could read markets and their own industries, knew then this kind of downturn was coming. So for the Island Sky, Ferries' new vessel, to be set for launch now at a final cost of $57 million seems crazy. To be still laying out $30 million or $40 million for refitting old boats seems equally odd.

The maritime world is bizarrely awash in fairly new vessels. And they're selling for equally bizarre prices.

For the price of the Island Sky, you could have bought three ferries last week, each four years old, same size as the Sky. And all would be cheaper to operate.

The major terminals pose problems to taking advantage of the market. Right now, the market is flooded with nearly new ferries that would be highly suitable if not for the dock configurations of those big terminals. Too bad, because those ferries are selling for what one analyst told me were "stupid" prices — which I think was his European way of saying "incredibly low".

But the other smaller terminals could handle some of the ferries now on the market. And instead of the mega-costs of the refits that Ferries continues to undertake, the company could, in theory, head for the market and take advantage of those "stupid" prices.

(And yes, I know that would involve import duties, and rob local yards of work. And I know that foreign vessels might need  adjustments — although maybe that would cancel out the cost of flying employees over to Germany and back endless times to supervise and wrangle and train. I know that there are issues having them recertified in Canada. But at some point, there's just no justification for wasting this much money when it eats directly in to fares and service. Those things shouldn't keep it from happening.)

Want specifics? Last week, for $50 million, you could have bought three 100-metre, 350-passenger, 150-car, double-ended Caterpillar-engined ferries. Four years old. Job lotted. Available now. And they're SOLAS compliant, which means they meet the international standards that most ferries around the world sail by. and they would have resale value — something most of Ferries' vessels don't have.

If it could take advantage of the market situation, the company could expand and improve the fleet for the cost of a single refit.

But that would require managers who understood the economy and the industry and the maritime market, and who were current with all those things. It would require a company with the  flexibility, and the money, to act quickly when opportunities came along.

B.C. Ferries doesn't appear to have any of those things. Not the smarts or the money.

And that's just another cost of Gordon Campbell's decision to privatize the running of the ferry system and hire people who weren't experienced in real ferry operations. He wanted to shove the debt for newbuilds off of the provincial books — and he got his wish. But he also got a company with no way to get its hands on money right now. The province, had it still been running the show, could have borrowed cheaply and put the vessels in place quickly.  

Things could have been different. Too bad they're not.

Vancouver Island News Group

Wed 27 Feb 2008

Page: 0004 Section: Campbell River Mirror - Opinion

If ferry workers are half right in their assertions about privatization of B.C. Ferries, the travelling public should be concerned.

The B.C. Ferry and Marine Workers Union says all the debt B.C. Ferries has taken on since becoming a quasi-private entity - some $950 million worth of bonds, plus a $335 million line of credit - puts the corporation in a precarious position.

Because as costs rise, ferry fares rise and fewer people travel by ferry.

If it's allowed to continue, it could create a spiraling gap between what Ferries needs to stay in the black and what it takes in.

Not a good situation, as the ferry fleet ages and needs replacement.

As a quasi-private entity, the ferry corporation now derives the bulk of its income from sales of fares.
And those fares keep rising, as do the fuel surcharge that is added to every fare.

The union-supported Save Our Ferries committee says the new model threatens to sink the corporation, putting all its assets in the hands of bankers.

Vessels, terminals and property bought with taxpayers money.
Transportation Minister Kevin Falcon insists the debt is safe, and if so, we can all relax.
But it's difficult to relax when in its present incarnation, Ferries lacks accountability.

It is no longer subject to checks like B.C. Freedom of Information legislation, the provincial auditor general's or the ombudsman's office.

If the union hasn't overstated the threat debt poses for B.C. Ferries, it's time to pull the plug on this model of ferry management, before it all goes down the drain.

Copyright 2008 Campbell River Mirror

Last Updated: Wednesday, April 16, 2008

CBC News

There has been another increase at BC Ferries, but this time it's a 60 per cent pay increase for the board of directors.

B.C.'s Transportation Minister Kevin Falcon said he has told the chairman of BC Ferries that the pay raise — $30,000 to $48,000 a year for the part-time jobs of the regular board members — is far too generous.

The board of BC Ferries has hiked fares and their own pay. (CBC) "I actually phoned the chair of the board and I made it clear that the position of this government is that I think that is far too generous an increase," Falcon said Tuesday in Victoria.

The board chair, Elizabeth J. Harrison, also received a pay raise on April 1, when the pay hike went into effect, from $105,000 to $140,000 a year.

Five new members were appointed to the 13-member board on April 11.

But apart from picking up the phone and complaining, Falcon said he won't do anything else to stop the increase. The NDP transportation critic Leonard Krog thinks Falcon needs to do more. "A 60 per cent pay increase for BC Ferries directors is outrageous, especially at a time [when] ferry fares are rising steadily. This minister can tell that board to roll it back," said Krog. "I've got families in Nanaimo who would happily take up a part-time position for $48,000 a year," said Krog.

But Falcon insisted he's not going to interfere with the operations of BC Ferries. "The chair and the board are independent of government. We structure it that way," said Falcon.

Since 2003, BC Ferries has been structured as a private company owned entirely by the B.C. government. It has been operating with a 60-year contract to provide ferry service for the province.

On April 1, BC Ferries hiked fares by an average of 7.3 per cent on the three major routes connecting Vancouver Island to the Lower Mainland and an average of four per cent on the remaining routes.

The company said the "fare increases are necessary due to the rising cost of fuel as well as operating and capital expenditures."

CBC News

From news 1130

http://news1130.com/news/topstory/article.jsp?content=20080925_165459_12248



Will Coastal Renaissance be part of BC Ferries cost-cutting measures during fall-winter season?
Coastal Renaissance
Thursday, September 25 - 01:54:59 PM Jim Goddard

The new BC Ferries ship Coastal Renaissance could spend most of the fall-winter season parked in port, running only on Fridays and Sundays to save money on fuel. That's believed to be one of the options BC Ferries is looking at to keep costs down during non-peak days.

One unconfirmed report says the Coastal Renaissance will be replaced by one of the smaller ferries, likely the Queen of Cowichan, for most of the off-peak travel season on the Departure Bay-Horseshoe Bay route.

Mark Stefanson at BC Ferries couldn't confirm it, but does admit saving money is a consideration. "We're always looking at ways to reduce our costs, but so far no plans have been finalized in that vein." He wouldn't say if reduced service by the Coastal Renaissance is one of the options they're looking at.

Richard Good from the Ferry Workers Union hasn't heard about the Coastal Renaissance officially being reduced in service but wouldn't be surprised if it were. "I think they have to look at everything, with the economy and ridership going down this summer. I'm thinking they do have to find places to cut costs."

The new ferry has a car capacity of 370 vehicles, and passenger and crew capacity of 1,600 people.

Canwest News Service

Published: Saturday, September 27, 2008

B.C. Ferries may reduce the number of sailings for its new Super-C class vessels as part of a strategic approach to cut millions of dollars from its operating costs.

Management has yet to make a decision, but spokesman Mark Stefanson said several cost-saving measures could be implemented, including a hiring freeze for non-essential positions and reducing travel for administrative staff.

Fewer people have travelled the coastal waters in the past three months, Stefanson said, citing up to a 10 per cent reduction in vehicle traffic. He said C-class vessels could take over the routes to save money.

When you see traffic drop off, you don't need a larger ferry," he said yesterday.

"July was down. We were back up in August a bit, but September's been down as well."

B.C. Ferries is expected to make an announcement next week outlining a plan to reduce operating costs. Stefanson could not provide precise numbers about traffic reduction or how much money management aims to save.

Union staff jobs are safe so far, according to Richard Goode, acting president of the B.C. Ferry and Marine Workers Union.

"They aren't talking layoffs right now, but the company is in a tough spot," he said.

British Columbia's ferries are a floating highway, essential to the province's overall transportation network. Threats of service disruptions due to strikes can cause a serious downturn in tourism, as well as harm the reputation of B.C.'s tourism industry. COTA believes that ferries must offer reliable service and affordable passage. COTA has taken the position that no interruptions to service are tolerable and has made recommendations to government in support of replacing strike action with alternative dispute resolution (ADR) to prevent further service disruptions.

Northern ferry service is crucial to maintaining the integrity of the provincial highways system and for the development of the tourism industry in BC. To improve Northern ferry service, COTA supports the four-ship service option presented by BC Ferries for the increased capacity, reliability, and efficiency the new vessels will provide.

Council of Tourism Associations - Voice of the BC Tourism Industry

http://www.cotabc.com/

Indeed, it seems that rising ferry prices have adversely affected tourism to Vancouver Island. The Island’s share of provincial tourism—as measured by accommodation room revenues—is in decline. The share of total room revenues has fallen from 20.2% in 1989 to 18.4% in 2003—a drop of 1.8 percentage points. This represents about $30 million in room revenues.

The trend in Vancouver Island’s share of room revenues has closely followed changes in ferry prices. This suggests that BC Ferries has been, to a degree, pricing Vancouver Island out of the tourism market. A simple correlation analysis indicates that real average ferry prices “explain” some 84% of the change in Vancouver Is-land’s share of room revenues.
As a rough estimate, one can suggest that the rising ferry rates since 1989 are associated with about $26 million in lost room revenues on the Island in 2003 alone. To the extent that Vancouver Island is a destination for visitors outside of the province, it is likely that the BC tourism sector as a whole has been affected.

Data Source: BC Stats and BC Ferries

Reductions at Langdale and Horseshoe Bay will affect Powell River

By Laura Walz | Powel River Peak

Wednesday, October 8, 2008 12:02 PM CDT

BC Ferries is reducing a number of sailings on its major routes over the fall and winter because of a significant reduction in traffic during the last few months.

The routes serving Powell River through Saltery Bay-Earls Cove, Westview-Comox and Powell River-Texada Island are not included in the reductions.

However, some 7:20 am Sunday sailings from Horseshoe Bay to Langdale and 6:20 am Sunday sailings from Langdale to Horseshoe Bay are being cancelled.

Other cancellations include some 7:25 pm Saturday sailings from Horseshoe Bay and some 6:30 pm Saturday sailings from Langdale. The first sailings to be affected will be on Saturday, October 18 and the new schedule will run until the end of March 2009.

The cancellations will impact travellers to Powell River in the following ways:

• On Sundays, travellers cannot get to Powell River from Vancouver before 2 pm.

• On Saturday afternoons, travellers leaving Powell River on the 3:20 pm ferry will not have a connecting ferry at Langdale. They will have to wait on the peninsula until the 8:20 pm ferry.

• On Saturdays, the last fully connecting ferry to Powell River is the 5:30 pm out of Horseshoe Bay.

Other runs affected by the reductions are on the Swartz Bay-Tsawwassen and Departure Bay-Horseshoe Bay routes.

In a statement, BC Ferries said the sailing cancellations are being taken to better match the company’s service levels with the reduction in traffic.

Thanksgiving and the December holiday season are not included in the reductions.

“Our highway has become more expensive and now it becomes less accessible,” said Nicholas Simons, New Democratic Party (NDP) MLA for Powell River-Sunshine Coast. “Residents of the Interior not only prevented their Coquihalla [Highway] from being sold, but now they don’t even have to pay operating costs. What is lacking is a voice for the community at the boardroom table. Who is looking after the public interest? Is this just the beginning?”

Simons also pointed out that the ferry corporation has said it is trying to reduce its overhead costs, but it has a large advertisement on the clock at GM place.

Chris McNaughton, president of Tourism Powell River, noted that Premier Gordon Campbell has challenged the tourism industry to double tourism revenues by 2015. “Unfortunately, BC Ferries’ fare increases and service reductions place increased strain on our regional tourism industry which is already struggling against a backdrop of forces which include increased fuel costs, real estate market adjustments, a US [United States] and global financial crisis and the resulting decline in US visitors.”

“Transportation is a basic infrastructure requirement that enables coastal communities to foster a healthy and diversified local economy, McNaughton added. “

© Powel River Peak

Derek Spalding
Daily News

Tuesday, August 26, 2008

B.C. Ferries engineers are investigating structural damage to several Nanaimo homes that may have been caused by excessive vibration from the new Super-C class vessels operating in the area.

Residents on White Eagle Terrace, near the Departure Bay ferry terminal have to keep windows closed at night to stop the rattling of window frames ever since the Coastal Renaissance started sailing in April.

B.C. Ferries spokeswoman Deborah Marshall said workers have visited several homes to inspect cracked wall plaster, cracked windows and cracked concrete. She said the corporation is hiring a structural engineer to investigate, but revealed few details of the complaints that began in December when the vessel first arrived.

One resident said she is tortured by the low-frequency vibrations, while other residents say they are constantly adjusting picture frames that shimmy off shelves in their family rooms. The situation gets worse for people like Bob Wiekenkamp, who saw a crack in one of his bay windows and reported it to B.C. Ferries. The retired engineer can feel the vibrations when crews engage the propellers of the ships. Wiekenkamp's neighbour, who was unavailable Monday, has reported cracks in the foundation of his home.

Marshall said a new muffler has been installed on the Coastal Celebration, which makes test runs from the terminal and is set to sail for Victoria this week. She said the source of the vibration could be from the exhaust or the propeller, but the cause of the damages will be determined when the engineer finishes the investigation.

Wiekenkamp said the ferry corporation is doing everything they can, but in the meantime, he remains "worried about the embankment" and the damage it could do to the homes on his side of the street.

"I'm also worried about my foundation, but I can't see (it) because it's enclosed," he said.

Residents across the street have not reported damage, but they feel the vibrations through their homes. Kory Wilson often wakes up late at night to the sound of a metal picture frame shaking on her bedroom wall. A heavy night light beside her bed also rattles. For months, she couldn't figure out who was moving the six-by-four inch picture frames in her family room, until one day she realized the vibrations were causing them to shimmy out of position. Her daughter Lesley has to close the windows in her room at night, otherwise they also rattle and keep her awake.

Janet Cameron-McGregor has complained about the vibrations for months. The old vessels never bothered her, but the Coastal Renaissance and Coastal Celebration shake her to the "core," she explained. "(B.C. Ferries) keep telling us they're doing something, but they never do."

DSpalding@nanaimodailynews.com

© The Daily News (Nanaimo) 2008

Updated: Tue Aug. 26 2008 21:25:07

ctvbc.ca

A Nanaimo, B.C., homeowner is complaining about vibrations from one of BC Ferries biggest vessels.

For years, residents living close to BC Ferry docks have complained about noise traffic congestion. But now some homeowners in Nanaimo are claiming the ferries are responsible for causing damage to their homes.

Bob Wienkenkamp says the cracks on either side of his large bay window are caused by excessive vibration, something he says started the day the Coastal Renaissance arrived. It's one of the biggest vessels in the BC Ferries fleet.

"Things are rattling and shaking and it's a very uncomfortable feeling,'' he said

Even more worrying, he says, is the potential impact on the value of his property.
"Our neighbours have had a window pane shatter and it looks now like their foundation is starting to crack,'' Wienkenkamp says. "And I know it's a new crack because he had painted it and now you're clearly seeing a crack."

The complaints have been formally made to the BC Ferries Corp.

"We are calling in a structural engineer to substantiate these allegations or claims,'' said BC Ferry Services spokeswoman Deborah Marshall.

"Nothing has been substantiated at this point, but we do want to bring in an expert and we will continue to work with the residents,'' she said.

In an effort to reduce noise and vibration, ferry operators now use the prop less forcefully when leaving and docking.
But Wiekenkamp, a retired engineer himself, fears those efforts will not be enough.
.
"I'm more interested in the long term solution,'' he said. "We really don't want to be pushed out of here because we can't stand it.'

ctvbc.ca

Union worries for safety of up to 100 workers

James Weldon,
North Shore News Published: Friday, February 29, 2008

UNION officials are raising the alarm after the discovery of asbestos forced a work stoppage Wednesday on a ferry in Lower Lonsdale's Vancouver Drydock.

As many as 100 workers who have been helping to refurbish the Queen of New Westminster could have been exposed to the cancer-causing agent in recent days, they said.
The ship has been at the facility since last fall. "They definitely know there was asbestos and there are people who were exposed to it," said Toby Charette, president of Marine and Shipbuilders local 506, which represents some of the workers who were on the vessel. "There are quite a few people on that job."

A team of specialists is combing over the ferry to determine the extent of the problem and the severity of the exposure, which was reported to WorksafeBC late Wednesday afternoon. "They're going through the whole thing," said Charette. "Nobody's going back on the vessel till they know exactly what they're dealing with."

Whether or not it poses a threat to the wider community is unclear. "It's a very small amount as it is right now," said Charette. "

Could it have floated off the vessel? Yes it could have. How far I do not know."

The fact asbestos was found on the ship comes as no surprise, he said. Where it was found is a different matter. Work crews were given a rundown of locations the substance was expected to be before work started, and specialists went over the boat looking for possible trouble spots. Those areas were sealed off, and removal teams were brought in to clean them up.

But in recent days, a team of welders uncovered an area outside the sealed portion that looked suspicious. A test conducted on the spot came back positive. When the results arrived, work was shut down.

The concern now for the union is that the dozens of workers who were toiling in the unsealed part of the ship may have been exposed unknowingly. They were wearing breathing gear, but that would not protect them from any asbestos that might have settled on their clothing or in areas around the site. "It's not close to enough, because of the way asbestos is. It goes all over the place," said Charette. "There are proper procedures . . . that include showering and containment and everything like that."

The 130-metre BC Ferries ship, built in 1964, usually runs between Tsawwassen and Duke Point. It was brought to the dry dock in the fall of last year for upgrades.

© North Shore News