BC Ferries has begun a year-long regulatory process to determine fare limits for the four years starting in April 2028.
The company submitted a 141-page document to the BC Ferries Commissioner on Oct. 1, outlining its financial outlook, operations and investment plans for Performance Term 7, or PT7, which runs from April 1, 2028, to March 31, 2032.
The commissioner uses the submission to set price caps, which determine the maximum allowable average annual increase in fares.
“BC Ferries approaches PT7 facing a financial challenge that has been building over successive performance terms. Certain measures were adopted in previous performance terms, such as temporary funding, deferred capital investments and the extension of asset service life. These measures helped maintain affordability and manage near- term pressures but did not address the underlying costs associated with operating, maintaining and renewing the ferry system,” the report said.
Under current projections, BC Ferries’ debt could rise from about $2 billion to more than $4 billion during PT7, according to the submission. The company says rising marine-sector operating costs and an aging fleet are making it harder to defer investments.
“This submission focuses on sustaining the ferry services British Columbians rely on today – safely, reliably and over the long term,” the report said. “The submission does not include many of the service enhancements customers and communities have asked for, including more frequent sailings or additional terminal amenities. Adding service beyond current levels would come at additional cost and would require corresponding funding.”
A preliminary price cap is expected by the end of March 2027, with a final decision expected in September.
The commissioner’s public comment period is now open and runs until Feb. 28, 2027.
BC Ferries is also working with the province on the next Coastal Ferry Services Contract, which sets minimum service levels and provides government funding to support them.
