Island Ferry Services Ltd.

25/06/2019

As reported in the Bulletin and elsewhere, we're disappointed to confirm that we won't be starting this summer ...but we remain committed to getting going!

We have made progress in all of the key areas:
• Ships are secured, are under construction, and are now committed to Island Ferries
• We have agreed lease or license Term Sheets for terminals in each of Nanaimo and Vancouver.
• We have completed all of the required environmental assessments and have obtained the necessary permit from the Vancouver Fraser Port Authority.

In April 2019, we secured a substantial portion of the funding required to complete our financing. This was great news. However, we were also set back when one highly-expected source of funding did not come through.

In order to respect the parties involved, we are not going to identify either of the two parties – the one going ahead and the one that, frankly, disappointed us.

However, we have been working actively with our investment partners to replace those funds and are currently in a due diligence phase with two separate entities.

The key questions and answers:

a. Are you still active? The answer is very much – yes. We continue to attract seed investment to keep us going and we have been able to move forward on all aspects of the project

b. Are you still planning on starting service this summer? Regrettably, no … we won’t have the ships here in time or the work completed in each of the two terminals in order to start this summer.

c. When will you start? We have a planned start date based on ship acceptance and delivery and we are working to that plan. As soon as the one remaining (and smaller) financial commitment, we will be in a position to announce a firm start date.

Finally, we'll respond to the questions and messages that we've received (and expect to receive) and commit to more frequent updates in the weeks to come.

https://www.nanaimobulletin.com/news/foot-ferry-service-in-nanaimo-wont-happen-this-summer/

Island Ferries says it still needs to secure funding

12/12/2018

07/12/2018

Everyone at Island Ferries truly appreciates your support in helping us to sail across the horizon we call the finish line.

29/11/2018

We know that an update is (long) overdue. On our last post, we indicated that we had three major areas of work to complete … and that we would post something at that time …. so here goes....

We have completed an Environmental Effects Determination (essentially an environmental analysis) required by the Port of Nanaimo. It has been approved by the Port. Apart from finalizing the lease (all the terms of which have been agreed), we are ready to go in Nanaimo.

We contracted for a separate environmental analysis as required by Port Metro Vancouver. In addition to reviewing the work needed to replace the external structures at the South SeaBus Terminal in Vancouver, the analysis examined the impact of our operations on marine mammals. The potential impact was assessed as minimal; our operating practices and the work that we will do with others were accepted. With this, Port Metro Vancouver approved our proposed work.

We have yet to conclude our negotiation with Translink (and cannot go into the details here) but discussions are well-advanced.

With this work done, we are clearing the final work needed to conclude our financial contributions. Again, we cannot and will not discuss those details here but ….

Ship construction is on schedule. The first of the two, new ships will be ready for sea-trials in late-May/very early June.

Assuming that the last pieces come together in a reasonable time frame, we will start terminal work early in 2019, take delivery of the ships in Nanaimo in late June/very early July and be up and running in the summer 2019.

Although this can seem simple and/or straightforward, it is a costly and complex undertaking. But the stars are (finally) aligning and we look forward to a busy summer!

04/06/2018

An update for our Facebook friends and followers, community supporters and future customers….

First, we apologize for the delay in posting this notice. There are a host of “moving parts” and it’s a bit challenging to keep them in focus and moving in the same direction, to be transparent with you, and to remain respectful of the other parties involved in this initiative.

Regrettably, we won’t be starting service this summer.

To recap and outline the work ahead of us:

We’ve been through a “Request for Expressions of Interest” with the City of Nanaimo and Nanaimo Port Authority, and we secured an “Offer to Lease” with the Nanaimo Port Authority. The time frame for that Offer to Lease has recently been extended and we are grateful to the NPA for their continued commitment.

TransLink subsequently initiated its own “Request for Information” process, another lengthy undertaking that led to Island Ferries being selected to enter into commercial negotiations. Our commercial negotiations with Translink are under a very restrictive non-disclosure agreement. As such, we cannot and will not speak to the details other than to say that the discussions are positive and that there are few remaining issues.

The IFSL-TransLink license must be approved by the Vancouver Fraser Port Authority (VFPA) since the VFPA holds TransLink’s lease for the SeaBus Terminal. We did not anticipate that the very minor works required to the outside of the SeaBus Terminal (replacing the existing ramp and fenders) would require a comprehensive permit application to the VFPA – including a separate environmental assessment focused on the potential impact of our operations on marine mammals. The permit application and associated study were recently submitted but approval can take up to 60 days.

At this time and in order to move forward, we need to complete three key tasks:

1. We need to complete an environmental assessment required by the NPA, a requirement that emerged during lease negotiations. This work includes obtaining the Snuneymuxw First Nation’s input to the environmental assessment. This process has taken much longer than anyone had anticipated but we believe that it is nearing completion.

2. We need to complete negotiations and finalize licensing arrangements with TransLink for use of the South SeaBus Terminal in Vancouver.

3. We need VFPA approval of application to complete the external modification to the SeaBus terminal. As noted earlier, the VFPA’s stated approval timeline is between 10 and 60 days.

Frankly, we aren’t in control of the approval and negotiating timeline but, once these goals are met, we will be able to set a date for the start of service. That date will take into account the many activities that we have previously said need to be done in order to carry our first passengers:

• design, gain approval for, and make the physical infrastructure changes that are needed at the Nanaimo Port Authority and SeaBus terminal;
• set up the various back-office systems (personnel, financial, marketing, ticketing, reservations, etc.);
• hire and train ship and terminal crews, as well as the supporting team members; and
• trial, ship from the construction yard to Nanaimo, and take delivery of two brand new catamarans (that will incidentally meet the highest environmental standards in the marine industry), and complete the remainder of the training program.

Admittedly, this is a very long update and the news will be disappointing to many. Including us. This is a complex, expensive undertaking with many moving parts (some of which have been most unexpected), yet we are working diligently through the regulatory processes to “keep those parts moving in the same direction”, and get this service underway.

As always, we truly appreciate the support and interest that we continue to receive from many, many quarters. Please bear with us. We are still investing on this project and remain fully committed to providing this much needed, and highly desired, Nanaimo-Vancouver service.

19/01/2018

(please share as you consider appropriate....)

A GOOD NEWS update to our post of January 8th….

We recently shared with you that Translink’s Request for Information process had closed, that the staff evaluation of responses appeared to be complete, and that their Real Estate team would be making contact with preferred proponent(s).

We’re delighted to let you know that Translink has advised that they have accepted our response. We will shortly enter a negotiating phase which we understand will kick off with Translink seeking responses to somewhat more specific and focused due diligence questions. Our best estimate is this process will be complete – that is, we will have completed negotiations for an offer of an Operating License – in 2 to 3 months.

Notably, we have been authorized to expand our work to include direct discussions with Port Metro Vancouver staff on aspects where their approval is needed.

This is great news and a major step forward. With ship construction on schedule, our target remains to start service in the summer of 2018.

Again, thanks for sticking with us and your many messages of encouragement. We look forward to serving you

08/01/2018

Happy 2018 to our friends and followers!

Although we have been responding directly to messages, email, and media and personal calls, it has been awhile since we posted broader update. Indeed, one is overdue.

There are essentially 5 major components to this project – terminals in each of Nanaimo and Vancouver, two Transport-Canada-certified ships, competent people, and adequate financing. Of course there is a myriad of details but these are the big pieces.

We reported earlier that we had reached agreement with the Nanaimo Port Authority on the Terms of an Offer to Lease. Broadly, this agreement will permit us to operate from the Port’s passenger and ship berthing facility, as well as to lease a portion of their property at 100 Port Drive for parking.

In order to ultimately enter into a lease agreement, the NPA requires that that an Environmental Assessment be conducted to assess the impact of our operations. We have agreed on the scope of that assessment and have engaged an environmental consulting firm to do the work, an effort that will require input from key stakeholders, most notably the Snuneymuxw First Nation.

On the Vancouver side, there had been interest expressed from a few operators to make use of berth(s) at the South SeaBus Terminal. (You may have seen recent media reports where a Vancouver-Victoria proponent stated that they would not be going ahead with a possible service). Given that interest, TransLink issued a Request for Expressions of interest in mid-September 2016. Submissions were due on October 15, 2016.

Given the substantial interest from central Vancouver Island, we believe that our proposed service is likely to be the most consistent with TransLink’s public transportation mandate and is most likely to offer TransLink the best financial return.

Last Friday (January 5, 2018), their procurement staff advised that the RFI was closed (which we take to mean that their evaluation of responses is complete) and that their Real Estate Department will now make contact with the preferred proponent(s).

Construction continues on schedule on our ships. Although our first two vessel s were sold to a third party when we couldn’t put all the pieces together in time, the replacement ships are identical to those already certified by Transport Canada with one exception – the engines will now comply with the International Maritime Organization’s Tier 3 requirements, the most stringent air emissions standards in the marine environment. The ships are scheduled to be completed by end-May 2018, trialed and then transported to Nanaimo.

On the people side, we are delighted to have received over 150 resumes and expressions of interest. We respond to – and are holding onto – each and every such submission. Moreover, we intend to hold a hiring fair at some point in the spring of 2018

Finally, to close financially with our infrastructure investor, we need an executable lease from the NPA, an executable operating license from TransLink, and executed ship contracts. As noted earlier, we’ve moved forward on the critical pieces and, of these, are looking forward to entering into the key next piece -- discussions with TransLink.

In answer to “the Big Question”, we remain committed to starting service in the summer of 2018. There is much to be done to achieve that objective (and a couple of key milestones to achieve) but we remain committed to this project and to initiating this highly sought-after transportation alternative.

Thanks for sticking with us! We look forward to serving you.

23/08/2017

Another update to our Facebook friends and followers, community supporters and future customers:

We are pleased to post the attached Press Release, jointly issued by the Nanaimo Port Authority and Island Ferries today (Wednesday August 23rd).

A full 20 months have passed since the Parties in Nanaimo decided in December 2015 to terminate the multi-party Memorandum of Understanding with Island Ferries and “test the market” through a Request for Proposal (which became a Request for Expressions of Interest). We were identified as the “preliminary preferred proponent on January 9, 2017. Since March 7th when the City, Port and Snuneymuxw First Nation issued the press release posted earlier on this page, we have been working to secure an “Offer to Lease” with the Nanaimo Port Authority.

Following numerous exchanges of proposals and direct negotiations, we are pleased to report that those negotiations have concluded. And that Island Ferries has secured an Offer to Lease that –

• is financially sustainable for the long term,
• keeps fares affordable and competitive for our customers,
• is consistent with and accommodates the needs of the broader community, and
• is acceptable to our investors and shareholders.

This is a significant milestone: there are many “moving parts” to this initiative and the lack of an operating location in Nanaimo has caused most other aspects to slow or stall. To use a domino analogy, the leading domino has just been pushed over and the resulting energy should now re-create the necessary momentum to bring this project to fruition.

So, what is next?

We need to finalize licensing arrangements in Vancouver, complete the environmental assessment required by the NPA, continue our engagement with the Snuneymuxw First Nation (including consultation associated with the environmental assessment), hire and train ship and terminal crews, and set up the various back-office systems (personnel, financial, marketing, ticketing, reservations, etc.). Physical infrastructure changes are needed at the Port and, to a much lesser extent, in Vancouver. And, of course, we need to trial the ships and take delivery of two brand new catamarans that now meet the highest environmental standards in the marine industry.

There are a lot of moving parts! Given all of this, we are now planning to start service by the end of June 2018.

As we have said many times, we remain committed to Nanaimo and to establishing a passenger-only service to downtown Vancouver that is dependable, reliable, affordable and sustainable for the long term.

We are relieved to have achieved this significant milestone and look forward to getting on with the work at hand. In addition to the work described above, this will also include ongoing dialogue with the City of Nanaimo, the Province of BC, business, community tourism and economic development representatives, and – by no means least – those of you who are looking forward to traveling with us.

Finally, thank you AGAIN for your continued support. We’ll keep you up to date and look forward to welcoming you on board!

27/07/2017

An update to our Facebook friends and followers, community supporters and future customers:

We have stayed off Facebook for a while and apologize to those of you who have posted comments or sent direct messages. Our reason for doing so is this: we have been in lease negotiations for some time and have wished to remain respectful of “the process”, and avoid negotiating in public, via Facebook, or through the media.

We continue to believe that we should respect the process, notwithstanding that a full 19 months have passed since the Parties in Nanaimo decided in December 2015 to terminate the multi-party Memorandum of Understanding with Island Ferries and “test the market” through a Request for Proposal (which became a Request for Expressions of Interest).

We were identified as the “preliminary preferred proponent on Jan 9, 2017 subject to “additional due diligence” (which was itself suspended in February), at which point we were invited to provide the NPA with our detailed operational plan and infrastructure requirements. We did so on February 17th. Since March 7th when the City, Port and Snuneymuxw First Nation issued the press release already posted on this page, we have been working to secure an offer to lease with the Nanaimo Port Authority.

We received the NPA’s first “preliminary proposed lease term sheet” on March 31st and, since then, have been exchanging proposals and meeting in direct negotiations. We believe that we understand the NPA’s requirements and constraints, and we believe that they understand our needs and objectives. For our part, these are to secure an offer to lease that is financially sustainable for the long term, that keeps fares affordable and competitive for our customers, that is consistent with and accommodates the needs of the broader community, and that is acceptable to our investors and shareholders.

We’re making progress but, regrettably, we aren’t there yet.

Assuming that we can reach agreement, what happens next? When do we start?

Well, we have consistently stated that it is going to take us at least 6 months from a financial close to start service. Our financial partner is still behind us (amazingly, given the incredible time it is taking to obtain locations from which to operate), the ships and the supporting financing remain available. Physical infrastructure changes are needed at the Port and, to a much lesser extent, in Vancouver. We also need to finalize licensing arrangements in Vancouver, complete an environmental review, hire and train ship and terminal crews, set up the various back-office systems (personnel, financial, marketing, ticketing, reservations, etc.) – the “soft infrastructure” needed to properly establish this service.

Given all of this, the earliest that we will be able to start is now Spring 2018 and more likely, June.

We wish this were not the case but we have not been in control of either the process or the timeline.

For all this, we remain committed to Nanaimo and to establishing a passenger-only service to downtown Vancouver that is dependable, reliable, affordable and sustainable for the long term.

We apologize again for not staying in contact but hope that you understand “why”. We will respond to some of your direct messages over the next day or two but hope that this update addresses many of the comments that have been more widely posted.

Finally, thank you AGAIN for your continued support. We look to return it in spades as soon as we can.

08/03/2017

Today's Press Release from the Nanaimo Port Authority, Snuneymuxw First Nation and City of Nanaimo comes as welcome news. Island Ferries is delighted to have been identified as the preferred proponent to provide a passenger-only ferry service between Nanaimo and Vancouver.

We look forward to commencing lease discussions/negotiations with the Nanaimo Port Authority in the very near future and providing you with the transportation option that many of you have been calling for and supporting for some time. Thank you!

We know that many of you will want to know "when?" That will depend, at least in part, on the speed with which we can agree on a lease and make the improvements to the Port's infrastructure that are needed to support passenger-ferry operations. But our goal remains to establish an affordable, reliable, dependable, customer-friendly ferry service just as soon as we can.

We'll keep you posted!

16/01/2017

We’ve periodically had the same (or similar) questions regarding our planned schedule and fares. Here is some information for our FB friends all in one place.

This is a starting point and will be adjusted as we understand (in even greater detail) our customers’ desired travel patterns. Additional, unscheduled and charter sailings can be added but are not shown.

These are our projected start-up fares, exclusive of the fees to be charged by 3rd parties (which have yet to be negotiated).

As we gain detailed understanding of our customers’ travel patterns and needs, we plan on a more “dynamic” pricing system, periodically offering much-reduced, time-of-day of “last-minute” fares intended to encourage and reward travel.

10/01/2017

Island Ferries is delighted to have been identified as the preferred proponent to provide a fast foot passenger ferry service between downtown Nanaimo and downtown Vancouver.

The recent announcement confirms the City of Nanaimo, the Port and Snuneymuxw First Nation have made progress on the file. As the preferred proponent, we look forward to entering into lease negotiations as soon as possible. The announcement made by the parties on Friday, January 6th is a welcome step in that direction.

You’ll want to know our start date. Frankly, that depends on how quickly we can negotiate a lease with the Port and then make the necessary improvements to the Port infrastructure. Our goal is “as soon as we can and hopefully by the start of the summer”. This, and keeping your transportation costs as low as possible will be our focus of discussions with the Port Authority.

If you’d like to hear more, please listen in to CBC Radio on Wednesday, Jan 11th at 7:50 AM when David Marshall, our Director of Operations will be speaking with Gregor Craigie.

24/12/2016

Even Santa appreciates speed and convenience!!

Wishing all of our Facebook followers a very Merry Christmas. We thank you for your continued support and truly look forward to serving you as soon as possible in 2019!

25/11/2016

Want another option to get to and from Vancouver? Do you believe that Nanaimo needs the economic boost that a reliable, fast, passenger-only ferry service can provide?

We’re working hard to make that a reality.

Assuming that we can establish a terminal in Nanaimo from which to operate, two new passenger-only ferries could be operating in JUNE 2017, whisking you to downtown Vancouver in under 70 minutes.

Imagine six round trips per day, 2 early departures from Nanaimo, return sailings from Vancouver at the end of the working day, and a late-night sailing leaving from downtown Vancouver 30 minutes after the end of the hockey game, even if it goes into overtime.

Imagine no cost reservations where we update you directly on any changes to your sailing.

Imagine being able to relax with your friend and colleagues around tables, arranged to support your desire to work, eat, read or simply have a great conversation.

Imagine being able to do that while enjoying a light meal and a beer or glass of wine.

We’re focused on meeting your needs and doing so at a price that is affordable for commuters, business and pleasure travel, and that supports economic development in Nanaimo.

We’re not looking for tax breaks, below-market rents, etc, etc. We simply need a location in Nanaimo from which to serve you.

If you want to “Arrive Sooner” starting in the SUMMER OF 2017, please speak up now and tell that to the City of Nanaimo, the Nanaimo Port Authority and the Snuneymuxw First Nation.

15/11/2016

Hello to our Facebook followers! Given the host of messages that we have recently received and in light of the news over the last few weeks, we feel obliged to respond to you. We have not gone away!

As you know, there has been a "bit of a competitive selection process" underway. We have maintained silence out of respect for that process and in order not to be perceived to be trying to influence the Technical Advisory Group’s work.

Although the TAG’s terms of reference and the evaluation criteria to be used were not shared with proponents or made public (despite our early request that they be make known), we have absolutely no reason to criticize or question the character or the professionalism of the TAG members. We have responded to each and every question that they have posed to us.

In November, 2015 City Council and Port Board of Directors were advised that we had secured sufficient financing and were ready to start service in June 2016. All that was required was for the City of Nanaimo to reset the lease at the Gadd Site, though Island Ferries did offer to renegotiate the terms, if that was the City’s wish or need.

In December 2015, the City and the Port announced their intention to embark on a competitive process with a goal of having a passenger-only ferry service up and running by December 2016.

For reasons that are not at all clear to us, this “selection process” is taking an extraordinary amount of time. Here we are in mid-November 2016 and the first phase of that process – evaluating responses to a Request for Expression of Interest – is still not complete. Why is it taking so long? We don’t have the answer to this question.

The next (announced) step would be lease negotiations with the preferred proponent. As such, there is zero chance of starting the service in 4-6 weeks (that is, Dec 2016) and we see little or no apparent urgency on the part of the City and the Port. The question is “why not”? Again, this is not a question that we can answer.

We continue to believe that we are offering the best service to Nanaimo. We have our equity commitment, we have two new ships under construction for us, and we intend to take delivery of those ships in the spring of 2017. We could be operating by the summer of 2017, if we have access to a terminal in Nanaimo from which to operate and a timely decision in order to put in place the necessary infrastructure.

We remain committed to Nanaimo and this opportunity but time IS marching on and other opportunities exist.

Thanks for hanging in here with us – we’ll make more information available over the next few days.

01/04/2016

FOR IMMEDIATE RELEASE
April 1, 2016

Island Ferries Questions RFEI Process

April 1, 2016 – Nanaimo, BC – On November 25, 2013, Island Ferries Services Ltd. invited the Nanaimo community to attend an Open House at the Vancouver Island Conference Centre. At that time, IFSL informed the entire community of its intention to initiate a foot passenger service. The company also highlighted, if it was to navigate the waters before it, demonstrable support from the City of Nanaimo City Council would be vital.

IFSL’s business model focuses on excellent customer service and sharing with the public its business strategy. That commitment was demonstrated in the Company’s participation in an eTown Hall meeting requested by the City of Nanaimo, on Monday, December 2, 2013 in the Shaw Auditorium of the Nanaimo Conference Centre.

At both sessions, IFSL described to Nanaimo and Island residents its plans for a downtown Nanaimo – downtown Vancouver foot passenger service. It confirmed that two Transport Canada-certified sister ships (42 metre length, 12 metre beam) that could provide comfortable, reliable and dependable travel – and a 68 minute crossing to downtown Vancouver – were ready for service once final funding was arranged.

Island Ferries encouraged the community to express its support for the IFSL proposal and to advocate their support directly to Nanaimo City Council, recommending that Council approve the proposed lease and partnering agreements. The community responded and Council acted as requested, despite IFSL not yet having secured final funding.
“From day one, we have said it is important not only to IFSL but, more importantly, to our customers and to the community, to be transparent in our offerings”, said David Marshall, Island Ferries, Director of Operations. “Future passengers want to see this service move forward. They wanted to see it then and they want, and deserve, choices in their travel options now.”

With the final funding recently committed, nothing had changed for Island Ferries but for the decision by the City of Nanaimo and the Nanaimo Port Authority to seek interest from other potential operators.

According to the joint Request for Expressions of Interest (RFEI) released on March 30th, the City of Nanaimo and the Nanaimo Port Authority view the operation of a high speed passenger ferry service between the two cities as a catalyst that will diversify and grow the local economy. IFSL couldn’t agree more.

Both organizations have identified the operation of a passenger ferry as a top strategic priority. IFSL had invested heavily to fulfil that need. IFSL agrees completely that its service will help to bolster tourism in the Nanaimo and the Central Vancouver Island Region by creating a fast and cost effective transportation alternative for Lower Mainland residents and tourists to access Vancouver Island.

The RFEI seeks responses from passenger ferry operators who wish to establish a high speed, frequent and reliable year round passenger ferry service between downtown Nanaimo and downtown Vancouver. While noting that this service does not currently exist, both the City and the Port have been well aware of Island Ferries’ interest for some time and have had in their possession much of IFSL’s proprietary information. Through the various mandated public processes, they have been provided with more than sufficient background information to engage IFSL directly.

Despite having advised the City and the Port Authority that Island Ferries had secured its final funding commitment prior to any public announcement of an intended proposal call, and notwithstanding the frustration expressed by all parties with the time taken to implement the service, Island Ferries was prepared to respond to the RFEI when issued.

Having reviewed the RFEI, the company is very concerned that the criteria appear to exclude a number of operators, including Island Ferries. As written, the RFEI indicates the City and the Port are interested in receiving responses from firms who “have a proven track record of operating a high speed passenger only ferry service”. This statement appears to exclude IFSL and perhaps other operators who may have an interest in a submission. At a minimum, it would seem to establish a clear preference for an operator other than Island Ferries. While Island Ferries intends to submit questions seeking clarification on a number of issues, this exclusionary element is of considerable concern now.

As the City and NPA reserve the right to modify the terms of the RFEI at any time, it is IFSL’s sincere hope that they will take such action promptly and in a fair and transparent way, so that proponents such as IFSL and the community may take comfort that there is genuine interest in receiving responses.

“Island Ferries has been committed to establishing a reliable, dependable fast, passenger-only ferry service between downtown and Nanaimo and downtown Vancouver”, said Dr. Stewart Vinnels, Island Ferries President. “The City of Nanaimo and the Nanaimo Port Authority say they are interested in securing an operator of a high speed “Passenger Ferry” service between downtown Nanaimo and downtown Vancouver. IFSL can deliver this service this year and would like the opportunity to do so.”

-30-

Additional Information:

IFSL page https://www.facebook.com/islandferries
IFSL Twitter https://twitter.com/islandferriesca.

Island Ferries intends to establish a reliable, dependable fast, passenger-only ferry service betwee