Passenger fares on Marine Atlantic are being reduced dramatically thanks to new federal investment in the service. PHOTO – Marine Atlantic
Transport Action Atlantic (TAA) is thrilled to see a major passenger-focused federal investment in ferry services in Atlantic Canada, as the federal government has swiftly followed through on a campaign promise that will benefit the travelling public in this region. TAA has long advocated for reductions to ferry rates, particularly on Marine Atlantic between Newfoundland and Nova Scotia. This was part of our 2025 election agenda, and it was also one of the major advocacy priorities we identified at our AGM, so we consider this to be a major success of our advocacy.
TAA had expressed cautious optimism about the new government’s promises to reduce ferry rates in the region, after seeing the previous government take far too long to only partially follow through on their promises about reducing Marine Atlantic’s cost recovery targets. So we are particularly pleased to see quick and concrete action by the current federal government.
Thanks to the federal announcement last week and the swift implementation on August 1, 2025, it is now more affordable for passengers to travel on four major ferry services in the region, with passenger fares reduced by 50% on Marine Atlantic to Newfoundland, Bay Ferries between Nova Scotia and New Brunswick, Northumberland Ferries between Nova Scotia and PEI, and to the Magdalen Islands. Tolls on the Confederation Bridge have also been reduced, which further reduces another barrier to residents and visitors of Prince Edward Island.
While this is welcome news for passengers travelling in the region, this does not fully address the constitutional commitment to the people of Newfoundland. Beyond the passenger component, the recent federal announcement only freezes the commercial freight rates at their current level. To fully respect the spirit of the Terms of Union that made Newfoundland and Labrador a part of Canada, and to address ongoing cost of living challenges facing citizens across the country, reductions to the cost of moving freight to and from Newfoundland should also follow to make life in the province more affordable.
While we welcome the follow-through on this campaign promise, TAA will continue to advocate for:
Honouring the constitutional commitment to Newfoundland and Labrador by maintaining lower passenger fares and lowering commercial freight costs on Marine Atlantic; and
Improving public transport connections in the Maritimes to ensure that people can access these ferry services without the need to bring a personal vehicle, with schedules that connect effectively and cooperation between carriers to ensure convenient movement of passengers.
Ferry passengers to PEI will also see a break, as will those on the other federally funded ferry services in the region. PHOTO – Northumberland Ferries Limited
Removing the HST from intercity bus and rail fares would be a climate-friendly, simple and practical way to benefit lower and middle income Canadians, says Transport Action Atlantic. The advocacy group held its 2025 annual general meeting virtually on May 31.
Eliminating the tax on public transportation tickets would mean an immediate fare reduction for most train and motor coach users, says TAA president Tim Hayman. The benefit would go directly to the passenger – not the carrier. It would surely be welcome news for people who don’t own cars or choose not to fly, he noted, adding it would also serve as an incentive for those who drive to leave their cars at home.
The discussion at the AGM ranged over a variety of public transportation issues, aimed at resetting the group’s agenda for the coming year.
Another key TAA priority is encouraging action by the Government of Canada to fix the badly deteriorated VIA Rail passenger service in the region. Over the past two decades train frequencies have been reduced, schedules have slowed substantially due to poorly maintained track and freight train interference, bus connections to offline communities have been severed, and passenger amenities have been downgraded. One example of the effects of track conditions is the reality that it now takes longer for VIA’s Ocean to travel from Moncton to Campbellton than in the era of steam locomotives.
“We will continue to advocate for reasonable and affordable improvements that would restore passenger rail in the Maritimes to at least the minimal standard that existed at the turn of the millennium,” Tim Hayman said. “The number one priority is to get the track on CN’s Newcastle Subdivision rehabilitated to the standards maintained in the 20th Century, because without that badly-needed investment passenger rail in this region will never improve.”
As next steps, TAA is calling for restoration of reliable bus connections to destinations not currently served by passenger rail, such as Saint John, Fredericton, Prince Edward Island, Cape Breton, and the Newfoundland ferry. The third goal is the return to daily VIA service between Halifax and Montreal – an objective that the organization believes is achievable in the near term if the political will is there to do it.
“We believe Atlantic Canadians should not have to wait – probably ten years or more – for delivery of the new long-haul passenger equipment promised last year by the federal government before they see any substantive improvement in passenger rail,” the TAA president commented.
Discussion at the meeting also included ferry services, and lack thereof. It was noted that Canada’s new government had included in its election platform a promise of major fare reductions in the constitutional Marine Atlantic service to Newfoundland, as well as to tolls on the Confederation Bridge and its alternative service provided by Northumberland Ferries; however, no timeline has been given, and concern was expressed that it could be a repeat of a 2015 promise by the Trudeau Liberals to withdraw the 65% cost recovery requirement imposed on Marine Atlantic by the Harper Conservatives. That campaign pledge took nearly nine years to come to fruition.
Another ferry issue is the need for a reliable year-round service to connect Campobello Island with the Canadian mainland. The only permanent access the 800 residents have to the rest of New Brunswick is by using an international bridge to the United States – a routing that has become increasingly problematic over the years, and especially in recent months. TAA has endorsed the position expressed by a leading Campobello ferry advocate, who maintains the absence of a year-round link to the rest of Canada is a Charter Rights issue.
Transport Action will also continue to support and advocate for better urban and rural transit in Atlantic Canada. It was noted that Canada’s smallest province – Prince Edward Island – has shown itself to be a leader in this field by funding rural transit throughout the island, and making public transportation services affordable for everyone.
TAA past-president Ted Bartlett appeared on CBC’s Information Morning Moncton on June 4 to discuss these priorities. You can listen to that interview here.
As polling day for the 2025 federal election draws ever closer, Transport Action Atlantic would like to draw attention to a pair of key issues that we’re highlighting for candidates in this election. This election comes during a time of of growing global insecurity, an increasingly fractured and uncertain relationship with our neighbours to the south, and an ever greater focus on Canadian sovereignty and resilience. We believe that a robust domestic transportation system, with options that provide convenient, affordable and sustainable connections between Canadian cities, towns, and provinces, can play a major role in connecting our nation during these tumultuous times.
TAA is an all-volunteer, non-partisan advocacy organization. Our goal is to promote convenient, affordable and sustainable public transportation for all Atlantic Canadians. During the current federal campaign we believe it is important – and reasonable – to ask candidates of all political persuasion where they stand on these issues.
There are many intercity transportation issues that we support and continue to advocate for, but in this campaign we have decided to focus on two key Atlantic Canadian issues where we feel we have a strong voice. These are 1) the critical need for investment to restore and bolster passenger rail in Atlantic Canada, and 2) the need to provide affordable ferry travel between Newfoundland and mainland Canada.
We are pleased to present these two policy briefings, continuing our regional and national theme of Ideas in Motion. We encourage you to read and discuss them. If you agree with us that they deserve priority attention among campaign issues critical to Atlantic Canada and its future, please share them and encourage others to join the cause as well. Don’t miss this opportunity!
These two policy briefings focused on Atlantic Canada are published in their entirety below, and you can open or download either of these briefings as a PDF using the links below, so you can save, print and share them as you wish!
A vision for renewed VIA Rail service in the Maritimes
Passenger rail in Atlantic Canada today is a sorry remnant of what it used to be. For the past three decades it has been declining at a more precipitous rate than elsewhere in the VIA Rail system. In fact, portions of the Quebec City-Windsor corridor have, in recent years, seen improvement in frequency and capacity, and investment in new trains.
A major setback for VIA’s Maritime service came in October 2012, when the frequency of the region’s sole remaining train was cut to just three times weekly, under the guise of being an “improvement” to better meet the public demand. VIA’s then-CEO was insistent that the Ocean was primarily a tourism product – completely ignoring the realities of local needs and travel patterns. The train has suffered significant ridership losses and increasing operating costs since the cutback. VIA is now paying more to operate fewer trains, and VIA’s own corporate plans acknowledge that passengers in the Maritimes are being poorly served by the current schedule.
The tri-weekly operation eliminated the possibility of same-day returns to the Maritimes from Montreal, and one-day round trips to Moncton for residents of New Brunswick’s North Shore – an important consideration for people who have few other public transportation options. The lack of frequency also rules out rail as a choice for weekend travel, and it limits its usefulness when severe winter conditions make other forms of transportation unreliable or impossible. In the years since, the train’s schedule has been extended due to slow track conditions, train capacity has been constrained by the dwindling availability of serviceable equipment, and key on-board amenities have been lost due to the removal of infrastructure in Halifax that allowed VIA to turn its trains.
Frequency and reliability are key components to making passenger rail service viable. Transport Action Atlantic believes that a daily Ocean with equipment appropriate to meet market demand at different times of the year would be the most effective way to serve communities all along the route, as well to provide a quality seasonal tourism product. Improved track infrastructure to facilitate better travel times would also help make the service more attractive.
The 2024 federal budget allocated funding for VIA to begin the replacement of its long-distance, regional, and remote train fleet. This is an important step, but it needs to be seen through to completion in a timely fashion to ensure that VIA’s services are not impacted before new equipment can arrive. It is also critical that the new fleet provide a sufficient increase in capacity to allow the trains to meet and grow market demand, and allow for the return of at least daily train service in Atlantic Canada. Further, investments are needed in the short-term to maintain the existing fleet. We continue to believe that frequency increases could be possible with the existing fleet, following refurbishment work.
Extensive market research should guide both the acquisition of new passenger cars and refurbishment of the existing fleet. A variety of accommodation and onboard amenities should be available to accommodate various travel budgets, including budget options for those willing to pay for additional comfort and personal space without luxury pricing. Simply put, the product should meet the needs of the marketplace.
There is also the issue of track infrastructure. The total Montreal-Halifax travel time for the Ocean today is longer than it was in the era of steam locomotives – largely due to the deteriorated condition of CN’s Newcastle Subdivision in northern New Brunswick. Passenger train speed is limited to just 30 miles per hour on a lengthy stretch of track where 70 mph was safely permitted less than 20 years ago. Federal investment a decade ago was meant to improve the track, but the money has been spent and speeds have not been restored. Clearly, more investment is required, but in so doing the infrastructure owner needs to be held to account to ensure the outcome meets the intended objectives.
Canada does not end at Quebec City! Canadians outside of the corridor also deserve investment in modern passenger rail equipment and services. At a time when national unity is of the utmost importance, investing in passenger rail is an ideal pathway to create economic opportunity and better connect Canadians from coast to coast to coast.
Affordable Newfoundland ferry rates – a constitutional commitment
Three quarters of a century has passed since Newfoundland and Labrador became Canada’s tenth province, completing Confederation from sea to sea. Transportation was a key concern for the people who designed the Terms of Union – and cost was an essential factor. Accordingly, Term 32 obligated Canada to provide a federally-supported ferry service between North Sydney and Port aux Basques, and provided protection against the higher cost of living resulting from geography. Specifically, framed in conformity with the dominant transportation mode of the day, the 100-nautical-mile crossing of the Cabot Strait was to be rated as an all-rail movement. The additional handling and operational costs of the ferry service were to be absorbed by the Government of Canada through Crown-owned Canadian National Railways.
Much has changed in the intervening years. The narrow-gauge Newfoundland rail line was abandoned in 1988; the railway passenger service on the island had been discontinued two decades previously. Traffic on the “constitutional” ferry route is now all highway-based. But the basic principle of Term 32 remains. While road has replaced rail, the ferry service operated by the federal Crown corporation Marine Atlantic Inc. (MAI) must be viewed in the contemporary sense as an extension of the Trans Canada Highway. If the spirit in which the Terms of Union were drafted is to be respected, vehicles crossing the Cabot Strait should be charged no more than the cost of driving them 180 kilometres by highway. Arguably, there should be no charges for commercial drivers or the occupants of passenger vehicles. It is significant that these additional costs do not apply to users of the Confederation Bridge to Prince Edward Island, which is also a constitutional obligation of the Government of Canada.
Over time, the best intentions of the latter-day Fathers of Confederation have been eroded. In the past two decades Marine Atlantic’s rates have more than doubled – an increase greater than three times the national inflation rate. Security fees and fuel surcharges have also been added. Notably, there are no such additional costs to users of the Confederation Bridge, where tolls are tied to the cost of living index.
Under a previous Conservative government, Transport Canada imposed a cost recovery target of 65% on MAI. Despite a campaign commitment from their leader in 2015 to address this “unreasonable” requirement, it took the subsequent Liberal administration nearly nine years (and three transport ministers) to get round to removing it. Ferry rates actually continued to rise in excess of the inflation rate until 2020.
Transport Action Atlantic believes the spirit of the Terms of Union that made Newfoundland and Labrador a part of Canada should be respected, and that Term 32 must be viewed in a modernized context. The ferry crossing of the Cabot Strait is part of the Trans Canada Highway, and should cost users no more than driving the equivalent distance by road. This is an obligation assumed by the Government of Canada in 1949, and remains as valid today as it did then – notwithstanding the passage of time and changes in transportation technology.
The major parties are currently campaigning on promises to eliminate the tolls on the Confederation Bridge and to re-examine ferry rates on crossings to Prince Edward Island. In the same spirit, residents of Newfoundland and Labrador should be afforded the same consideration in making travel to and from their province more affordable.
Today’s ferry rates are much higher than they should be – and in a time of economic uncertainty and increasing global costs, immediate action is required.
