According to reports, Ottawa and the province of Nova Scotia will hand over a combined $6m to keep the vital Bay of Fundy cargo ferry service afloat.
Nova Scotia Premier Rodney MacDonald announced a $2m lifeline to Bay Ferries Ltd. in order to keep the Digby-Saint John cargo service operating, reports the Halifax Chronicle Herald. That's on top of the $4 million Ottawa says it will kick-in. New Brunswick is also expected to contribute.
The government money is a short-term solution to keep the ferry sailing while a long-term solution is developed, MacDonald added.
In July, Bay Ferries announced skyrocketing fuel costs
, a drop in tourism and forestry exports, were forcing the company to anchor its service permanently. The Princess of Acadia vessel
was scheduled to make its last voyage on Oct. 31.
Bay Ferries and sister company Northumberland Ferries Ltd. also operate the high-speed Cat ferry between Yarmouth and two Maine ports, Portland and Bar Harbor; conventional service between Caribou, Pictou County, and Wood Islands, P.E.I.
Source: Halifax Chronicle Herald