Nova Star announcement of winter route downplayed by province

The province's transportation minister is sounding pessimistic about Nova Star ferry's future in Nova Scotia, even as the company that owns the vesselannounced Tuesday it has secured off-season work transporting passengers across the English Channel.

Nova Star Cruises says the winter work will involve transporting passengers betweenRamsgate, England, and Boulogne, France.

Company CEO Mark Amundsensaid in a news release the European routeis"the winter solution we've been looking for that will help make the route between Portland and Yarmouth more economically viable."

But Transportation MinisterGeoff MacLellan says he's seenthe Yarmouth-Portlandpassenger numbers for July and calls them anything but good news. He says they're stagnant and the company is not ontrack to meet the 80,000 passenger target for 2015.

Nova Star has not yet provided audited financial statements. MacLellan says he is still in talks with three other companies, which could take over the ferry service. Heexpects to make a decision the week of Aug. 17.

He called it the 11th hour for Nova Star.

Still need half ofusual subsidy

Nova Star service from Yarmouth to Portland is scheduled to end on Oct. 13. The ferry is set to begin three trips a day across the English Channel on Nov. 1, part of a service operated by English companyEuroferriesExpress.

The province pumped more than $28 million last year into the ferry service between Nova Scotia and Maine.

So far this year, Nova Star has received $8.1 million of a possible $13 million subsidy for the year.The company has also requested disbursement of $2.5 million more in the last few weeks.

MacLellan says he was not comfortable giving out that moneyand NovaStar has told him it would still need a sizeablesubsidy, even if it takes the winter work.

The minister says he sees the announcement of winter work as good for Nova Star, but notfor Nova Scotians. Helikened it to subsidizing a European ferry, which he says he is notprepared to do.

"Not one dollar"

Mark Amundsen, CEO of Nova Star, responded to the minister's comments, saying, "Not one dollar will go to the service operations over in Europe."

"We're on a time charter basis with Euroferries, and they operate the business. Nova Scotians will not be subsidizing anything to do with Nova Star over in Europe," he said.

Amundsen said there would still be costs such as marketing during the winter. The ferry continues to try to attract passengers, and he said U.S. ridership is up this year, but Canadian ridership has fallen. The company is still targeting 80,000 passengers this year.

"With the drop in the Canadian useage of the ferry, it's going to be very challenging," Amundsen said. "Our plan is still 80 [thousand], that's still achievable. We're going to have to make up more ground in August and September."

Ramsgate on board?

In apress release Tuesday, Euroferries said it is still finalizing the Ramsgate-Boulogne ferry run. Euroferries said it has received approval from the French side, but is still waiting on English approval.

"At this time, we have submitted a timetable to Ramsgate Port, which is already approved by Boulogne, and we are waiting their confirmations," the Euroferries statement said. "At this time EFX awaits the port's confirmation that they will accept the service."

Meanwhile, a Ramsgate-area paper reported the project does not have the approval of local administration.

"The local council has denied there is any truth in an announcement by Euroferries, claiming the firm would start a Ramsgate to Boulogne service this autumn," reported the Isle ofThanet Gazette. "Thanet council says a cross-channel ferry service from Ramsgate run by Euroferries is not imminent," the article continued.

Mark Amundsen of Nova Star said he's aware that Euroferries is still waiting for the timetable to be approved, but said he is not concerned.

"I've been over in Ramsgate, and Euroferries is putting up a tremendous amount of security upfront for this. They would not have entered into this agreement if they did not have everything in place," he said.