ST. JOHN’S, (June 21, 2005) — A group of Atlantic carriers want Transport Canada to reconsider its proposal that crown corporation Marine Atlantic abandon its drop-on trailer service.

Ralph Boyd, president of the Atlantic Provinces Trucking Association, met with representatives from Transport Canada in St. John’s today to respond to the recommendation. He presented an APTA-commissioned study that stated the Newfoundland and Labrador economy would suffer if the Port Aux Basques-North Sydney drop trailer service were discontinued.

The study, authored by AMEC using questionnaire-survey and other analysis techniques, states that the ferry service transports one half of the goods entering Newfoundland, including 90 percent of all perishable food items.

About $34 million of Marine Atlantic’s revenues last year came from commercial vehicles — over 50 percent of these consisting of drop trailers. Additionally, interest in the service has increased by 15.3 percent between 2001 and 2004, while live usage had increased by only 5.4 percent.

“The increase in usage of (drop trailer service) is reportedly due to delays experienced at MAI for live units and the need to utilize manpower and equipment as efficiently as possible to meet the market demands for trucking services in the midst of a severe shortage of qualified human resources,” APTA says.

The recommendation to halt drop service comes from a Transport Canada advisory committee responsible for reviewing the ferry’s business model regarding the fleet, financial needs, quality of service, and long-term funding and pricing plans of the company.

At a cost of $20 million a year to maintain, the ferry should get rid of the drop-on service, the committee stated in its report released this past May. 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.

Boyd says that the study findings indicate that the elimination of drop trailer service would have a significant impact on the ability of the trucking industry to serve Newfoundland the way locals have become accustomed to.

The trucking association predicts that converting drop trailer usage to live units would cost the industry approximately $50 million in capital costs and an additional $30 million in operating costs. “The trucking industry cannot absorb these costs; they will be passed on to manufacturers and shippers, and eventually to the consumers in Newfoundland,” APTA says.

Members of the APTA have indicated that while they recognize the need for some reform, they stand by their original recommendation to the advisory committee. That request involves the purchase of new, separate commercial vessel capable of handling both live units and drop trailers. The trucks want the vessel to have reasonable passenger capacity, capability of meeting the traffic offering, and the ability to maintain a year round on-time schedule.

“The trucking industry is asking that dialogue continue between Transport Canada, Marine Atlantic, and the APTA to ensure that improvements to MAI service are made without eliminating the federal constitutional obligation to offer a freight and passenger service that meets the traffic offering,” APTA says.

However, not all truckers feel the same way. Jon Summers, president of the Newfoundland & Labrador Independent Truckers Association — most of whose members are roll-on owner-operators — told Today’s Trucking after the committee report was released that he was excited Marine Atlantic would discontinue drop-ops and focus more on live loads.

Those customers have been complaining for years that they’ve been severely delayed, even bumped, at the expense of drop cargo, which takes time to load on and unload from vessels.

Summers suggested that although drop-on users would be impacted initially, it’s likely another provider would step in and add drop-on capacity.

In fact, Rigel Shipping Canada for years has toyed with the idea of launching a new Western Newfoundland – Belledune, N.B. cargo ferry service. The on-again, off-again rumour was supposed to be settled by the company after the committee report was released, but no official statement has been made to date.