The federal government will pay $38.6 million to buy a Norwegian car and passenger ferry to replace the MV Holiday Island, which will be scrapped in 2022 after an engine fire in the Northumberland Strait.
The government announced the price tag in a news release Thursday, three months after Prime Minister Justin Trudeau confirmed negotiations for the MV Fanafjord during a visit to P.E.I.
“Following an industry analysis, the Government of Canada has determined that the purchase of MV Fanafjord is the only solution that will meet operational requirements and ensure continuity of service as an interim measure while two new ferries are built,” the release said.
The vessel, currently owned by Nye Fanafjord AS, is expected to enter service during the 2024 season, which begins on 1 May and ends around 20 December.
Cardigan MLA Lawrence MacAulay, whose P.E.I. riding includes the Northumberland Ferries dock at Wood Islands, was among those quoted in the release.
“Two-way ferry service for communities in Nova Scotia and P.E.I. is vital to local communities and tourism growth,” the quote read in part. “Nova Scotians and Islanders count on us to provide critical infrastructure in a timely manner.”
After the potential purchase was announced, the Eastern P.E.I. Chamber of Commerce said that while it welcomed the news of a stable second ferry joining MV Confederation on the route, it had recommended the purchase of Fanafjord six years ago.
The Holiday Island was 52 years old and was already scheduled to be replaced when passengers had to be evacuated during a crossing in July 2022.
A Quebec ferry, the MV Saaremaa I, was brought in for part of that tourist season and for the 2023 season.
However, before the Saaremaa arrived from dry dock this summer, the 30-year-old Confederation was taken out of service due to mechanical problems, leaving no ferries crossing the Northumberland Strait for weeks.
The 2019 federal budget announced that a new ferry, to be built by a Quebec shipyard, would be ready in 2027, but that date has been pushed back.
“Design work for the new vessel is already underway, with delivery expected as early as 2028,” Thursday’s press release said.