7/27/2019 Yarmouth Ferry Negotiations fact sheet

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Yarmouth FerryNegotiations

Where weve been

Families and businesses in south west Nova Scotia want a growing economy, stronger

communities, a thriving tourism industry, and a stable erry they can count on being there

or the uture. The province shares that vision.

An expert erry panel reported that the decline o the previous erry operation was due to

decreased ridership and increased uel costs. By 2009, Nova Scotians were covering the erryslosses o almost $7 million annually.

The panel indicated that a successul and protable erry service would be possible with an

operator who has a sophisticated marketing strategy, who can leverage a strong tourist experience

in southwest Nova Scotia, and provide a high-quality on-board experience or passengers.

Based on the conditions outlined in the report, the province began a process to nd operators

or a new erry service. An initial request or proposals (RFP) was not successul in identiying

potential operators, but it did set the stage or a more fexible and eective process.

Through this process, the province received submissions rom three companies.

Where we are now

Thanks to the persistence o the community, and the help o the International Ferry Partnership,

the province is entering into negotiations with STM Quest, Inc., a proposed joint venture between

ST Marine Ltd. and Quest Navigation, or a erry service between Yarmouth and Portland.

I the negotiations are not successul, the province will move on to the next qualied proponent.

Who were negotiating with

STM Quest, Inc., is a proposed joint venture between Quest Navigation o Maine and

ST Marine o Singapore.

Quest Navigation responded to the initial RFP, and were able to build on their proposal ater more

discussions with the province. The new proposal contains more technical and nancial detail.

The erry service is proposed to begin in the spring o 2014 using a new 161 metre ship that

has capacity or 1250 passengers and 300 vehicles. The ship has 163 cabins with an opportunity

to increase the number o cabins with renovations.

7/27/2019 Yarmouth Ferry Negotiations fact sheet

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Chronology of Events

April 2012 The province appoints an expert panel to review studies on erryservice between Yarmouth and the United States and meets with various

interested people to nd conditions needed or a viable service.

September 2012 Premier Dexter accepts the expert panels report, which lays out the

conditions under which a successul and protable erry service rom

Maine to Yarmouth can operate.

The province indicates that it is prepared to commit as much as

$21 million over seven years to attract a new long-term cruise erry

operation in Yarmouth, run by a qualied erry operator.

October 2012 A drat request or proposals is issued, to be used in discussions with

potential erry operators.

December 2012 The province issues a request or proposals with a deadline o Jan. 24, 2013

as part o its plan to attract a qualied erry operator through a thorough,

transparent, competitive process.

January 2013 Proposals are received rom two companies, Quest Navigation Inc. and

Maritime Applied Physics Corporation.

March 2013 Ater a thorough evaluation o the two proposals submitted to the provinces

request or proposals, the evaluation committee ound neither met the

minimum criteria.

April 2013 The province issues another opportunity to companies with a target deadlineor submissions o June 20 and acts on the expert erry panels recommendation

to make the tourism experience even more attractive in southwest Nova Scotia.

A tourism team, chaired by Yarmouth Mayor Pam Mood, is established to

improve and promote the tourism experience in southwestern Nova Scotia.

The province provides $1 million to the team to make the local tourism

experience even more attractive, and market Nova Scotia in the northeastern

United States. Their work will continue until the end o August 2014.

June 2013 The province extends the deadline rom June 20 to July 4 to allow interested

companies more time to prepare submissions.

July 2013 The province receives business plans rom three erry companies Balearia Caribbean, Ltd., P and O Ferries, and STM Quest, Inc. The plans

are evaluated by a team o representatives rom the Nova Scotia International

Ferry Partnership and government departments.

August 2013 The province is entering into negotiations with STM Quest Inc.,

a proposed joint venture between ST Marine Ltd. and Quest Navigation.