www.manitoulin.ca/Expositor/old%20files/aug13_2008.htm -
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Published on: 8/13/2008
Last Visited: 9/10/2008
"We're not trying to completely recover our lost revenue," noted Ian Dean of the Owen Sound Transportation Company (OSTC), which operates the ferry on behalf of the Ministry of Northern Development and Mines (MNDM)."We're trying to cover some of our expenses but at the same time not scare away customers, who have the option of driving around."
Fares went up 10 percent for all passengers, although prices in the cafeteria and gift shop have remained static, said Mr. Dean.As well, the priority-passage booking fee of $20 and dinner cruise tickets, at $46.95 per person, have not changed.
The increase means that the cost for a standard-size car, not including driver or passengers, will now be $34.70 instead of $31.55.For a car carrying two people, the increase amounts to just over $6, noted Mr. Dean.
Like many businesses, the ferry service has struggled this year with the impact of higher fuel costs, which both deter people from travelling and add significantly the OSTC's diesel bill.But Mr. Dean stressed that the mid-season fare hike "is not a fuel surcharge;" had the company planned to offset its fuel expenses, the increase in fares "would have been much higher."
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Traffic aboard the Chi-Cheemaun has declined by 9 percent this summer, said Mr. Dean, and he doesn't expect passenger numbers to climb much, if at all, over the remainder of the season.
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This has resulted in a slightly longer crossing but had no impact on the departure times, in part because the decrease in vehicles has made for quicker turnaround times at the docks, noted Mr. Dean.
But even with the savings reaped through these adjustments, the ship is still taking a substantial hit, particularly since fares for this season were set before the spike in gas prices could be anticipated.
The OSTC board considered a number of scenarios before making a recommendation to the MNDM, which subsidizes the ferry service as well as has the final say in changes to its schedule or fare structure."We looked at different options, and at this stage of the season felt this was the most acceptable and practical," said Mr. Dean.
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Ferries in other parts of the country have introduced fuel surcharges to compensate for the increase to their operating costs, noted Mr. Dean."The larger ferries on either side of Canada have had at least one surcharge of about 15 percent," he pointed out.
The OSTC could go that route in the future, said Mr. Dean, but this will be a discussion to have later."We'll look long and hard at all the factors after this season is done," he said.