Coastal Transport lands Fundy Isles ferry contract

People living in the Fundy Isles have a guaranteed ferry service for the next 15 years.

The provincial government has signed a 15-year agreement with Coastal Transport Ltd.to operate and maintain the ferries serving the area, Transportation and Infrastructure Minister Claude Williams announced Wednesday.

The contract, worth $13.8 million a year, takes effect on May 28.

Coastal Transport already operates the Grand Manan and White Head ferries under the Fundy Isles Ferry Service.

Under the new contract, it will also be taking over the Deer Island ferry service.

"This inclusive partnership agreement will provide sustainability of the service for the islands during the long term," Williams said in a statement.

Grouping the services together will also allow for more focused management of the sector, he said.

"Coastal Transport Ltd. is a well-known and respected company. We are confident Deer Island ferry users will continue to receive quality, reliable and safe service from the operator."

No fees or tolls will be put on the Deer Island ferry once it's privatized, government officials told CBC News.

Coastal will take on the majority of the existing Deer Island ferry employees to ensure a smooth transition of the service, said Williams.

"Every reasonable effort will be made to reassign any remaining staff with the Department of Transportation and Infrastructure."

Deer Island is slated to get a new $4.7-million ferry in 2014 to replace the John E. Rigby ferry.

Coastal will operate and maintain the two current vessels until that time, said Williams.