B.C. taxpayers will be forced to throw BC Ferries a lifeline as the ferry system is sinking in red ink.
In its annual financial statements, the ferry corporation reports a net loss of $16.5 million for the year ended March 31, 2012. The ferry corporation had net earnings of $3.8 million the previous year.
Fortunately for the ferry corporation, it will be getting a bailout from the provincial government.
In response to a BC Ferries Commissioner's report, the B.C. government announced it will provide $79.5 million to help ease pressure on ferry fares. About $25 million of that will cover some of the company's deficit for the last fiscal year. The rest will be spread out over the next four fiscal years.
In the fiscal year ended March 31, 2012, vehicle traffic on BC Ferries declined by 3.5% to the lowest level in 13 years. Passenger traffic dropped 2.8%.
BC Ferries' revenue decreased by about $1 million for the last fiscal year, while operating expenses increased by $10.5 million. Fuel costs accounted for $4 million of the increased costs.
BC Ferries expects a small net loss again in fiscal 2013, but expects to be back in the black in fiscal 2014, unless traffic volumes continue to drop.
On the capital side of the ferry corporation's books, the company spent $153.8 million during the last fiscal period, ending March 31, 2012.
Capital expenditures included:
•$48.5 million for vessel upgrades;
•$44 million in terminal marine structures;
•$18.6 million for information technology; and
•$11.1 million for terminal and building upgrades and equipment.
