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Review of Coastal Ferry Services

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Review of Coastal Ferry Services CONNECTING COASTAL COMMUNITIES Review of Coastal Ferry Services Blair Redlin | Special Advisor June 30, 2018 ! !! PAGE | 1 ! June 30, 2018 Honourable Claire Trevena Minister of Transportation and Infrastructure Parliament Buildings Victoria BC V8W 9E2 Dear Minister Trevena: I am pleased to present the final report of the 2018 Coastal Ferry Services Review. The report considers the matters set out in the Terms of Reference released December 15, 2017, and provides a number of recommendations. I hope the report is of assistance as the provincial government considers the future of the vital coastal ferry system. Sincerely, Blair Redlin Special Advisor ! TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................................................................ 3! 1 INTRODUCTION ................................................................................................................................................................................... 9! 1.1| TERMS OF REFERENCE ...................................................................................................................................................... 10! 1.2| APPROACH AND METHODOLOGY ................................................................................................................................ 12! 2 BACKGROUND ................................................................................................................................................................................... 15! 2.1 | GOVERNANCE AND REGULATORY MODEL ................................................................................................................ 15! 2.2 | UNREGULATED FERRY ROUTES ..................................................................................................................................... 18! 2.3 | ALTERNATIVE SERVICE DELIVERY.................................................................................................................................. 20! 2.4 | COMMERCIAL APPROACH .............................................................................................................................................. 22! 2.5 | TRENDS IN FARES, TRAFFIC, AND PROVINCIAL FUNDING ..................................................................................... 24! 3 THE PUBLIC INTEREST ...................................................................................................................................................................... 33! 3.1 | CONNECTING COMMUNITIES ........................................................................................................................................ 33! 3.2 | SUPPORTING COMMUNITIES ......................................................................................................................................... 35! 3.3 | SERVING DIVERSE PASSENGER NEEDS ........................................................................................................................ 36! 3.4 | SUPPORTING THE ECONOMY......................................................................................................................................... 37! 4 OPERATIONS ...................................................................................................................................................................................... 41! 4.1 | SAFETY.................................................................................................................................................................................. 41! 4.2 | PUBLIC ENGAGEMENT ..................................................................................................................................................... 45! 4.3 | CUSTOMER SATISFACTION AND CUSTOMER COMPLAINTS ................................................................................. 49! 4.4 | HUMAN RESOURCES ........................................................................................................................................................ 53! 4.5 | EXECUTIVE COMPENSATION .......................................................................................................................................... 56! 4.6 | SERVICE RELIABILITY ......................................................................................................................................................... 62! 4.7 | SHIP BUILDING, MAINTENANCE AND REPAIR .......................................................................................................... 66! 4.8 | INFORMATION TECHNOLOGY AND RESERVATION SYSTEM CHANGES ............................................................ 73! 4.9 | INNOVATION AND BUSINESS DEVELOPMENT DIVISION ........................................................................................ 76! COASTAL FERRY SERVICES REVIEW REPORT PAGE | 1 ! 5 FINANCE .............................................................................................................................................................................................. 80! 5.1 | CAPITAL PLANNING, EQUITY, AND DEBT.................................................................................................................... 81! 5.2 | FEDERAL FUNDING ........................................................................................................................................................... 84! 5.3 | RISK MANAGEMENT.......................................................................................................................................................... 86! 5.4 | FUEL ...................................................................................................................................................................................... 88! 5.5 | ADMINISTRATIVE COSTS ................................................................................................................................................. 91! 5.6 | ANCILLARY REVENUE ....................................................................................................................................................... 93! 6 FUTURE DIRECTIONS........................................................................................................................................................................ 95! 6.1 | PROVINCIAL VISION AND POLICY FRAMEWORK FOR COASTAL TRANSPORTATION ..................................... 95! 6.2 | CLIMATE ACTION ............................................................................................................................................................... 98! 6.3 | REGULATORY FRAMEWORK ........................................................................................................................................... 99! 6.4 | IMPROVED COOPERATION BETWEEN THE PROVINCE AND BC FERRIES ......................................................... 103! 6.5 | BC FERRY AUTHORITY .................................................................................................................................................... 104! 6.6 | COASTAL FERRY SERVICES CONTRACT ..................................................................................................................... 106! 6.7 | LOCAL GOVERNMENT .................................................................................................................................................... 107! 7 RECOMMENDATIONS .................................................................................................................................................................... 108! 8 CONCLUSION .................................................................................................................................................................................. 116! 9 APPENDICES ..................................................................................................................................................................................... 119! 9.1 | PREVIOUS REVIEWS ......................................................................................................................................................... 119! 9.2 | FUTURE NEEDS AND OPPORTUNITIES IN COASTAL TRANSPORTATION ........................................................ 128! 9.3 | COASTAL FERRY SERVICES REVIEW: CLIMATE ACTION ANALYSIS .................................................................... 166! 9.4 | MNP LLP REPORT ............................................................................................................................................................. 187! 9.5 | ACKNOWLEDGEMENTS ................................................................................................................................................. 257! COASTAL FERRY SERVICES REVIEW REPORT PAGE | 2 ! EXECUTIVE SUMMARY Reliable and safe ferry service is essential for communities up and down the B.C. coast. Every day, ferries operated both by BC Ferries and smaller local providers ply the waters of the Salish Sea, the Inside Passage, Hecate Strait and points between to link communities together and to provide the crucial marine transportation services they depend on. Whether it’s for commuting, movement of freight, medical appointments, school trips or to help welcome tourists, daily life on the B.C. coast depends on a complex and intricate coastal ferry network that is too often
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