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Transportation and Works
December 17, 2012

New Custom Built Vessels Will Enhance Ferry Services Throughout the Province

Several new custom built ferries will be added to the Provincial Ferry Fleet to benefit communities throughout Newfoundland and Labrador. As a result, service across the Strait of Belle Isle, to coastal Labrador communities, and to Fogo Island and Change Islands will be enhanced, and all ferry dependant communities will have a new 42 metre “swing” vessel to rely on when repairs have to be made to vessels in service.

“Ferry service is key to the economic and social well-being of many communities in rural and remote areas of the province,” said the Honourable Paul Davis, Minister of Transportation and Works. “The Provincial Government will issue two Requests for Proposals in the coming weeks that will make new vessels available throughout the Island and coastal Labrador and ensure a high level of service for many years to come.”

The Department of Transportation and Works will issue a Request for Proposals (RFP) to construct a swing vessel, as well as a new vessel for Fogo Island and Change Islands. The Provincial Government pursued months of negotiations with Peter Kiewit International about the possibility of constructing the swing vessel at its Marystown facility, however these negotiations did not result in an agreement on terms. Given the pressing need to advance vessel replacement, the Provincial Government will now make these shipbuilding contracts available in an open and competitive process that will ensure the best price and the most competitive timeframe and terms for vessel construction.

“The decision to use an RFP process to construct new vessels does not prevent Kiewit from submitting proposals, and the Provincial Government hopes that Kiewit will respond with its most competitive offer,” said Minister Davis. “The company has built two 42 metre vessels for this government in Marystown already, and it is our hope that they will provide a competitive proposal to build a third.”

Proceeding with this RFP creates certainty that new vessels will be in place to meet the service needs of communities that require them.

“Advancing provincial vessel replacement is of great importance to Fogo Island and Change Islands,” said the Honourable Derrick Dalley, Minister of Fisheries and Aquaculture and MHA for the Isles of Notre Dame. “A new ferry will ensure the transportation needs of residents are met, and will also support the bustling economy in the area.”

In addition, an RFP will be issued for passenger, freight, and vehicle ferry services for the Strait of Belle Isle service and for coastal Labrador. The RFP will require purpose built ice-class vessels that have roll on, roll off capability, which are expected to provide faster and more comprehensive transportation services for the region. These new services will be put in place for a 15-year term starting April 1, 2016.

“Ferry services for coastal Labrador and across the Strait of Belle Isle will be key to continued growth and prosperity in the region,” said the Honorable Nick McGrath, Minister Responsible for Labrador Affairs. “Providing new multi-purpose vessels will ensure comprehensive service that can address changing industrial, commercial, and commuter needs, which is in keeping with the goals of our Northern Strategic Plan.”

Further information regarding the RFPs can be found in the backgrounder below.

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Media contacts:

Ed Moriarity
Director of Communications
Department of Transportation and Works
709-729-3015, 699-5668
edmoriarity@gov.nl.ca
Roger Scaplen
Director of Communications
Labrador Affairs Office
709-729-1674, 697-5267
rogerscaplen@gov.nl.ca

Darrell Hynes
Executive Assistant to the
Honourable Derrick Dalley
MHA for The Isles of Notre Dame
709-729-7967
darrellhynes@gov.nl.ca

BACKGROUNDER
Additional Information Regarding the Requests for Proposals for New Ferries

The Request for Proposals to Construct a 42 Metre Vessel and a Replacement for the MV Captain Earl W. Winsor:

The Provincial Government initiated vessel replacement by establishing a list of ferries to be constructed:

The Provincial Government began work on vessel replacement by awarding a contract in 2008 to the Peter Kiewit Sons Co. (now Peter Kiewit International) facility in Marystown. The contract engaged the company to construct two 42 metre ferries, with each ferry having the capacity to accommodate 16 cars and 80 passengers. The Request for Expressions of Interest process used by government to award the contract revealed that the Kiewit facility in Marystown was the only facility in the province capable of constructing ships of this scale.

In March of 2011, construction of these two vessels was completed at a total cost of $27.5 million each, and the vessels were christened the MV Grace Sparkes and the MV Hazel McIssac in honour of two strong and influential women in Newfoundland and Labrador provincial politics. The MV Grace Sparkes was put into service for the communities of St. Brendan’s and Burnside. The MV Hazel McIssac was put into service for Long Island and Little Bay Islands.

After these vessels were completed, the Provincial Government intended to have Peter Kiewit International construct a third 42 metre vessel at its Marystown facility that would be similar to the first two. However, after the MV Grace Sparkes and MV Hazel McIssac went into service, the company approached the Provincial Government for additional compensation for these vessels. Negotiations about additional compensation would remain unresolved, however in May of 2012, the company agreed to discuss terms for the construction of a third vessel and seek out additional compensation in another set of negotiations.

Discussions with the company about the construction of a third 42 metre vessel did not produce acceptable terms, and the negotiation process continues to delay vessel replacement.

In order to advance vessel replacement efforts while also maintaining the possibility of building ferries within the province, the Provincial Government will issue an RFP for the construction of a 42 metre swing vessel and the replacement of the Fogo Island / Change Islands ferry. The RFP will be issued in the coming weeks, and proposals will be accepted for a period of 90 days. Peter Kiewit International can still submit proposals to this RFP, and the Provincial Government encourages the company to do so.

The Request for Proposals for Combination Passenger/Freight/Vehicle Ferry Services for the Straits and for Coastal Labrador:

At present, ferry services for the Strait of Belle Isle and for coastal Labrador communities are provided by a combination of two privately owned vessels and two vessels owned by the Provincial Government, which are operated by two contractors:

The Provincial Government is seeking a single contract for all Labrador ferry services, and will require contractors to provide services with new, custom built, ice-class vessels that can take passengers, vehicles, and freight.

The Department of Transportation and Works will issue a Request for Proposals to secure such an arrangement, and is arranging the contracts for existing services to conclude by 2016. This will give the timeframe necessary to allow contractors to build new vessels to serve Labrador.

The RFP will be issued in the coming weeks, and proposals will be accepted for a period of 90 days.

2012 12 17             11:40 a.m.

 
 
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