Nova Scotia Negotiates to Secure CAT Ferry Service as Final Crossing Departs Yarmouth
Nova Scotia officials are in ongoing negotiations to secure the future of the CAT Ferry between Yarmouth and Maine. The vessel, leased from the U.S. Navy, completed its final crossing of the year on Wednesday with no guarantee it will return. Contract delays are hindering advertising and bookings for the 2027 season.
The CAT Ferry departed Yarmouth, Nova Scotia, on Wednesday for its final crossing of the year to Maine, leaving the future of the service uncertain. Nova Scotia government officials are currently engaged in ongoing contract negotiations to secure the ferry's return, but there is no guarantee the vessel will operate next year.
The primary obstacle in the negotiations involves securing the vessel, which is leased from the U.S. Navy. Nova Scotia Premier Tim Houston stated that negotiating with the U.S. government has become difficult due to changes within the American administration. Public Works Minister Fred Tilley said the provincial government is doing everything possible to resolve the issue quickly.
Because the ship is American-owned, its operating and cabin crews are American citizens, while the onboard hospitality and catering staff are Nova Scotians. One option being discussed to address this arrangement is for the Nova Scotia government to purchase the vessel outright, which would allow the province to employ more local residents.
The delays in contract negotiations are already having downstream effects. Advertising campaigns, bookings, and promotions for the 2027 season have been halted. NDP Leader Claudia Chender expressed concern that pushing against deal deadlines disadvantages the success of the service.
The financial stakes for the province are significant. This year, the Nova Scotia government provided a $21 million subsidy to Bay Ferries Ltd. to operate the CAT. In return, the ferry service is estimated to generate approximately $40 million in economic benefits provincewide.