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Soft summer travel worries Ferries
September 01, 2010

An increase in fares this year helped boost revenues at B.C. Ferries by 6.7 per cent, according to the company's first-quarter report.

Meanwhile, ridership has remained fairly flat. B.C. Ferries saw a 1.6 per cent drop in vehicle traffic and a 1.2 per cent drop in passenger traffic from April to June compared to the same time last year. July's ridership numbers are somewhat more positive, with a 2.5 per cent increase in passengers and a 0.3 per cent increase in vehicle traffic.

"I think people are still affected by the economy ... we're still seeing lower numbers for tourism," said B.C. Ferries spokeswoman Deborah Marshall. She said the company expects similar numbers for August.

B.C. Ferries increased its rates last April, which ranged from a 50-cent increase for walk-on passengers to a $2.25 jump for a one-way trip for a car and driver to the Lower Mainland. Large RVs and trailers were hit especially hard, with vehicles exceeding 20 feet paying $5.25 per foot, up from $2.25 a foot.

In the three-month period, revenue from ferry fares jumped 9.4 per cent compared to last year.

"We want to remind customers that all the revenue generated goes right back into the company," said Marshall, who pointed out that $26 million was spent in the first quarter on capital projects, which included upgrades to the Departure Bay terminal and to the MV Quinsam, which runs between Nanaimo and Gabriola Island.

"We need to do these infrastructure upgrades, it's a very expensive system to run." B.C. Ferries isn't look-ing at any adjustments to the ferry rates, she said.

Although revenues are up, expenditures have also jumped 4.1 per cent due to fuel costs, wage increases and other factors.

Net earnings were $900,000 for the first quarter compared to net losses of $3.6 million in the first quarter of the previous year, which was the result of paying for the new Coastal Class ferries, said Marshall.

"We remain concerned about the soft state of tourism currently in B.C. and as a result we are closely monitoring our expenditures," said president and CEO David Hahn in a news release.

"The summer months are typically the time of year when B.C. Ferries generates its annual profits and strong numbers in July and August are important to our bottom line."

Source :- http://www.timescolonist.com