Riding the wave: Manitoulin ferry facing changes to increase ridership.

• Author: Kelly, Lindsay
• Position: MANITOULIN/NORTH SHORE

The Owen Sound Transportation Company (OSTC) will implement changes to the operation of the Chi-Cheemaun ferry following the release of a report warning declining ridership could spell trouble for the ship in the next five years.

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Released in March, the MS Chi-Cheemaun Market Feasibility Study compiled by CPCS alarmed tourist outfitters, especially on Manitoulin Island, which rely on the Chi-Cheemaun to ferry passengers between South Baymouth and Tobermory during its busy summer tourist season.

Susan Schrempf, president and CEO of OSTC, which runs the ferry, said forecasting its imminent demise is a misinterpretation of the report.

"The reason this study was done was so that we don't end up in that situation, that we look now and be proactive now about making changes to the ferry so that we don't end up just dwindling down to nothing," she said.

The report indicates traffic decreased from 232,000 passengers in 2005 to 170,000 passengers in 2011, a 27 per cent decrease in ridership. The economic downturn, higher fuel prices, higher Canadian dollar exchange rates, changing travel and spending habits, and recent road improvements to the region are cited as reasons for the drop.

If action isn't taken, the report predicts ferry traffic will decline between 2.5 per cent and 3.5 per cent annually, with ridership dropping to 139,000 between 2018 and 2020.

Because the ferry was designed as a transportation system and not specifically for tourism, addressing these challenges means an entire cultural shift for the company, said Schrempt.

"We've been carried along the (tourism) wave for many, many years, but we're not a large company and we spend 99 per cent of our time making sure the ferry is properly maintained, properly manned, following all of the regulations, and operating as safely as possible, and that's a full-time job," Schrempf said.

"So we now have to devote resources or contract for resources to be able to promote the ferry for what it really is. It does transportation, but it's a part of a bigger destination, a tourism experience."

All the ferry's fares go towards its $8-million operating budget, while capital investments are made by the province. Regular, scheduled maintenance keeps the ship in "fantastic shape," Schrempf said.

The issue of low ridership was exacerbated this spring by low water levels. Operation of the vessel was delayed by two weeks, because low water levels meant the ship couldn't be operated...