BC Ferries Warns Fares May Jump 30%

The BC Ferries vessel Spirit of Vancouver Island leaves Tsawwassen, B.C., bound for Swartz Bay, on Sept. 9, 2024. The Canadian Press/Darryl Dyck

The CEO of BC Ferries has said fares may need to increase 30 percent or more to keep up with costs.

Nicolas Jimenez said in a written statement that BC Ferries has been seeing prices rise and is struggling with operational costs, which could require the company to increase fare prices.

Jimenez said the 30 percent price rise was forecasted last year to keep up with operating and capital costs. However, BC Ferries has seen a further increase in costs with a 40 percent increase in shipbuilding expenses since 2020.

The rising costs have led to a funding gap, he said, adding it would need a sustainable funding model to fix.

BC Ferries current fare structure is set to expire in 2028.

Part of the cost comes from new vessels the provincially owned corporation has ordered, including 15 Island-class replacements over the next five years. Four of those are already being built.

Costs are also going up when it comes to to keeping the current fleet in good shape, as well as the infrastructure the ships require.

“We’ve got 30-plus terminals that require work in the next number of years. That’s almost one in three terminals that need some significant investment,” Jimenez said.

The upgrade plan is expected to see capital costs increase between 10 and 15 percent each year for the next 12 years.

The CEO said he has spoken to the B.C. transport minister about the situation.

“Even with our current fares, we still don’t bring in the revenue we need to cover our operating costs and all our capital needs, and in many cases that means we’re falling short of what our customers expect,” Jimenez said.

Premier David Eby said it is the company’s responsibility to keep costs low and fares affordable.

“We’ve provided direct financial support to B.C. Ferries to ensure that British Columbians could rely on consistent fares,” he said. “That consistency in fares is very important to British Columbians, especially right now when they’re feeling that affordability pressure.”

Eby said that any discussion between his government and BC Ferries needs to include reassurances that the company is operating as efficiently as possible.

Digital Community Engagement

The warning about a possible fare increase comes just days after BC Ferries said it was doing away with its 30-year community advisory model and going digital.

BC Ferries has relied on advisory committees for feedback from communities for 30 years. They are volunteer-led groups that offered local insights and feedback to the company.

“A lot has changed in the last 30-plus years since the Ferry Advisory Committee (FAC) model was first created, and it’s time for us to have a look at our broader engagement process to make sure that it’s accessible, inclusive, and representative of a broad range of input,” Morningstar Pinto, BC Ferries executive director of external engagement, said in a Nov. 25 news release.

BC Ferries said that a survey in August of nearly 5,000 customers found that 81 percent wanted to engage digitally while 8 percent supported the FAC format.

The survey also found 48 percent were aware of the existing model, and 38 percent of those felt that it effectively represented community concerns.

The company says that in the new year, it will host design sessions, online surveys, and pop-up events at terminals and onboard ferries to seek customer input. It also said it will get input from local governments, First Nations, and community groups.

The FAC model process will end on April 30, 2025, and will be replaced by the digital-first model, the release said.

BC Ferries says more than 60,000 customers travel on its vessels each day.

The Canadian Press contributed to this report.