The CEO of BC Ferries is warning the company may need to increase fares by 30 per cent or more in 2028, when the current fare structure expires.
Nicolas Jimenez says in a written statement the corporation had forecast last year that such a price rise would be needed to keep up with operating and capital costs, but costs since then have spiked, including a 40 per cent jump in shipbuilding expenses.
The rising costs have created "a growing funding gap" that Jimenez says will require "a sustainable funding model" to address.
Last year, the province said it was providing $500 million to BC Ferries to help keep fares down, while the Office of the BC Ferries Commissioner had set annual fare increases of 3.2 per cent until 2027.
The province had said that without the additional funding, the fare increase would have been about 9.2 per cent per year over the same period.
Jimenez says he has already spoken to B.C. Transportation Minister Mike Farnworth about the situation and promises to work with the province to resolve the issue.
"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 says.
"Our customers have been clear in their expectations for a seamless, integrated transportation experience, and the pressing need to replace aging assets requires further investment beyond what the current model allows for."
B.C. Premier David Eby said Wednesday that while the province will work with BC Ferries to keep fares affordable, "there is an onus and … a responsibility on BC Ferries to do what they can to bring down their operating costs."
"We've provided direct financial support to BC Ferries to ensure that British Columbians could rely on consistent fares," Eby said. "That consistency in fares is very important to British Columbians, especially right now when they're feeling that affordability pressure.
"Any agreement and discussion going forward about how we can support them needs to have two parts. One is ensuring we're protecting British Columbians, and the other is reassurance to British Columbians that BC Ferries is operating as efficiently as possible, bringing down costs wherever possible."
The provincial Ministry of Transportation says in a written response that it is "committed to ongoing collaboration with BC Ferries as it addresses its financial challenges beyond the current 4-year performance term."
BC Ferries has said it is planning for five new vessels to be in service by 2031, with contracts expected to be awarded next spring.
In September, a propeller fell off the 60-year-old Queen of New Westminster, taking the vessel out of service for repairs that could take about six months to complete.
