Marine Atlantic drop, live load must co-exist: APTA

DIEPPE, N.B. — The federal government would turn the Rock into a modern day Alcatraz for consumers if it continues with a plan to scrap Marine Atlantic’s drop trailer service, says the region’s trucking association.

The Atlantic Provinces Trucking Association recently presented Transport Canada with a study stating the Newfoundland and Labrador economy would suffer if the Port Aux Basques-North Sydney service’s drop trailer operation were discontinued.

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 earlier this year. 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 APTA study shows that $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 association predicts that converting drop trailers 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.

It seems that the APTA’s argument may be carrying some weight with the committee, perhaps to the disappointment of the region’s owner-operators who rely on live loading and have been clamoring for Marine Atlantic to focus on those operations rather than drop service.

Jon Summers, president of the Newfoundland & Labrador Independent Truckers Association, has lobbied for years to have more attention paid to roll-on. He welcomed the committee’s original announcement, saying owner-ops have been severely delayed, even bumped, at the expense of drop cargo, which takes time to load on and unload from vessels.

But the APTA now has a strong ally in its battle to save the roll-on service. Labour leaders from six unions weighed in and recently urged the government to reconsider its proposal. Furthermore several prominent area politicians have jumped into the debate and putting pressure on the Feds to back off the plan.

“The federal government wants to reduce their obligation that was made at the time of confederation, and citizens cannot be duped into accepting short term gain for long term pain in receiving their goods,” says APTA President Ralph Boyd.

The APTA, however, has some members who also rely on live load service, and perhaps wouldn’t shed a tear to see drop go. Boyd admits that may have been the case at one point, but the view has changed somewhat.

“I represent both communities, and it’s true that there were some that felt that way initially,” he says. “But after our analysis, I think they understand there needs to be those two classes of freight coexisting.

“If, for example, 50,000 trailers all become live, where does it put the present live people today in trying to access the ferry? Does it put them at a better advantage? I would argue that one service is dependant on the other.”