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For Immediate Release
2026-07-27

BC Ferries proposes HR and asset investments designed to deliver efficiencies, savings

VICTORIA, BC — BC Ferries has applied to the BC Ferries Commissioner for approval to proceed with two capital projects – the Asset Management Information Program – Phase 1 (AMIP) and Human Resources Transformation Program – Phase 2 (HRTP) – that are expected to improve operational efficiency, support reliable service and help reduce long-term cost pressures.

As BC Ferries prepares its Performance Term 7 (PT7) submission, it continues to make difficult decisions to find meaningful savings and prioritize efficiencies throughout its operations. This includes implementing restrictions on exempt hiring, reductions in contractor support, efficiencies in fuel usage and, most significantly, reductions in our 12-year capital plan. BC Ferries has removed or deferred over $3 billion of planned investment in vessel, terminal and IT infrastructure through fiscal 2038.

The remaining allocation is focused on projects that are designed to maintain service delivery and renew critical assets, or – like AMIP and HRTP – represent essential investments in foundational capabilities and replace aging legacy systems that are more than two decades old. These efforts have the added benefit of decreasing pressures on customer fares and delivering efficiencies over the long term.

BC Ferries’ existing asset platform, which helps the company manage up to a quarter of a billion dollars annually in spares, inventory and maintenance and refit activity, is aging and no longer supported by the vendor. AMIP is expected to deliver improved reliability and safety of fleet operation through better maintenance planning, asset and inventory visibility, and data available for operational decision making, leading to more efficient use of maintenance and refit expenditures, reduced inventory carrying cost, and a continued shift towards more predictive maintenance. Beyond that, this system must be supported, secure and fit to meet BC Ferries’ regulatory obligations.

HRTP aims to modernize BC Ferries’ human resources, workforce management, scheduling, timekeeping and payroll systems by replacing fragmented legacy systems and manual processes. This would support a more modern way of working which improves the employee experience and gives leaders and employees better access to more reliable information. It will also strengthen workforce planning, enable efficient workforce deployment and help the company better manage labour costs. HRTP is projected to contribute to reducing the future fare increases needed in PT7 and onwards.

The Commissioner’s approval is required for each project as they are considered major capital expenditures under the Commissioner’s recently updated Order 26-01, interpreting requirements under the Coastal Ferry Act. Both submissions are available on BC Ferries’ website: https://www.bcferries.com/in-the-community/resources

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements”. These statements relate to future events or future performance and reflect the Company’s expectations regarding the demand for ferry services, the timing of fleet and terminal renewal programs, financial and business risks, results of operations, business prospects and opportunities, vessel performance, passenger expectations and satisfaction, expected levels of economic activity generated from our business decisions and industry performance and trends. They reflect management’s current internal projections, expectations and beliefs, and are based on information currently available to management. Some of the market conditions and factors that have been considered in formulating the assumptions upon which forward-looking statements are based include population and demand growth estimates, operational route planning, vessel redeployment strategies, anticipated impacts of fleet renewal and vessel standardization on reliability, capacity and operational flexibility, assessments of the expected operational life of our assets including vessel retirements, shipbuilding demand and cost projections, timing of completion of new ship builds and entry of new ships into service, vessel reliability and capacity estimates, expected environmental impacts, traffic trends, inflation, interest rates, fuel costs, construction costs and timelines, the state of the economy, tariff impacts and fluctuating financial markets. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. Although we believe that the forward-looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and British Columbia Ferry Services Inc. assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by applicable law.