April 23, 1999
(Works, Services and Transportation)

The following is being distributed at the request of Marine Atlantic:

Marine Atlantic reports record traffic, reduced subsidy

Increased revenues from record traffic, combined with lower fuel costs, enabled Marine Atlantic to reduce the subsidy requirement for its Newfoundland ferry service to just under $20 million in 1998.

The Crown corporation's annual report, tabled today in Parliament, notes that 1998 was the first full year in which it was responsible only for ferry routes between Newfoundland and Nova Scotia. The gulf service reported revenues of $47.2 million, an increase of $3.4 million from 1997, while direct expenses remained virtually unchanged at $57.9 million.

Including all administrative and support services, the company's total operating subsidy requirement for 1998 was $19.8 million.

In its centennial year, the ferry link between Port aux Basques and North Sydney exceeded 400,000 riders for the first time ever. Combined with the seasonal service between North Sydney and Argentia, a total of 444,425 passengers were carried. Commercial vehicle traffic reached 71,311 units, an increase of five per cent from the previous year.

Darrell Weaver, acting president and CEO, said the growth in traffic over the past several years has caused the company to review its future capacity requirements. In 1999 Marine Atlantic is continuing the process of identifying the most effective means of accommodating traffic and customer service needs in the years ahead.

Media contact: Ted Bartlett, Director Public Relations, (506) 851-3611.

1999 04 23 4:00 p.m.