OTTAWA, (May 6, 2005) — Marine Atlantic will likely drop its drop-on trailer service and add three larger vessels over the next five years, based on recommendations in a long-awaited report commissioned by Transport Canada.

The report, released this morning, is authored by an advisory committee appointed by the government to examine the Port Aux Basques-North Sydney service’s operations. The committee, headed by former Marine Atlantic chairman Sid Hynes, reviewed the crown corporation’s business model and made recommendations regarding the company’s fleet, financial needs, quality of service, and long-term funding and pricing plans.

Marine Atlantic, which is subsidized by the federal government to the tune of $41 million a year, has been struggling to balance its services. It is routinely criticized by owner-operators and drivers for the way it manages drop-on and live load business, sparking a number of recent truckers’ protests.

Some roll-on truck operators have complained they’ve been severely delayed, and even bumped, at the expense of drop cargo, which takes time to load on and unload from vessels. However, in a past interview with Today’s Trucking, Marine Atlantic President and CEO Roger Flood insisted the delays are not as long as many truckers contend, and there are times where live loads are given preferential treatment.

Still, the controversy was enough for the advisory committee to suggest that Marine Atlantic abandon drop-trailer operations — which has been estimated to cost about $20 million to maintain. The group also wants Marine Atlantic to reinvest in its fleet by phasing in three larger vessels between 2006 and 2011, and also recommends the ferry scale back rates by 15 percent.

“The fact that they’re getting out of the drop-trailer business and increasing their volume (by adding ferries) is great news for us,” said Jon Summers, president of the Newfoundland & Labrador Independent Truckers Association, most of whose members are roll-on customers. “With the service the way it was being provided, nobody — whether it was the tourism industry, live loads, or drop trailer (customers) — was satisfied. Everybody was suffering.”

In an interview with Todaystrucking.com this morning, Summers admits that the news many have caught drop-on carriers and owner-ops by surprise. “This is a bit of a shock to some of them when they heard it this morning, and right now they’re scrambling to find out which way they may need to go,” he said. “But like with any change, some people are going to benefit more than others, but it was a change that was long-overdo.”

That doesn’t mean drop-on customers on The Rock will be left without any sails. While other smaller services will likely add some cargo capacity, Rigel Shipping Canada has perhaps the most to gain from the conclusions stated in the report.

The company has been waiting for the release of the committee report before making a decision to launch a new Western Newfoundland – Belledune, N.B. cargo ferry service. The proposed ferry — the establishment of which has been discussed for almost five years — was put on hold when regional carriers refused to commit to it until the future of Marine Atlantic became clearer.

Rigel Shipping President Brian Ritchie is travelling today, and was unavailable for comment. However, with all the drop capacity to be left behind by Marine Atlantic, it’s likely the company would now take a serious look at picking up that business.

Other main recommendations in the report proposed:

Renewing Marine Atlantic’s governance structure; improving relations with users and stakeholders through partnerships; stabilizing Marine Atlantic’s annual subsidy; relocating the ferry’s head office to Port aux Basques; and passing savings on to users with a 15 percent rate reduction while predicting future rate hikes be based on inflation.

“This ties rates to reality,” says Summers. “Now (truckers) have to go back and look at their own freight rates they’re charging, and adjust them based on (market) conditions.”

At the end of the day, Summers says, the announcement translates to more flexibility and choice for all truckers in the region. “It makes us more efficient and eliminates all the delays we were experiencing,” he says. “That gets the produce to market in better condition than what it has been, meaning the general consumer can buy better quality products.”

A spokesperson for Marine Atlantic declined to comment on the report.