International Transit Route Could Face Political and Financial Headwinds
Feb 19, 2026
BAR HARBOR—As Bay Ferries continues to seek roughly $325,000 in annual funding from the State of Maine to cover piloting fees for the CAT’s trips between Nova Scotia and Bar Harbor, the Canadian government is simultaneously reviewing a final consultant report on the ferry service prepared by 21 FSP Advisory Inc.
That report, which cost approximately $250,000 (CAD), has not yet been made public. An interim version was released in October 2024, offering an early look at the consultants’ findings.
The high-speed ferry itself is owned by the U.S. Navy and leased to Bay Ferries, which operates the vessel under a contract with the Canadian government that runs through 2026.
According to an article by Maine Public’s Nicole Ogrysko, February 17, “Bay Ferries Ltd. CEO Mark Wilson told a Maine legislative panel last week that the province has also been paying more than $3 million each year for U.S. Customs and Border Protection agents to provide security at the Bar Harbor ferry terminal.”
Ogrysko quoted Wilson as telling the panel, “We really felt that we had no choice but to sign that contract, and you know, we feel very unfairly treated.”
All of this has potential implications for the Town of Bar Harbor, which also has contracts with Bay Ferries.
Bar Harbor Town Manager James Smith said during the town council meeting, February 17, “Several months back, the council passed a resolve, maybe it was an order, to coordinate with the Bay Ferries and the Atlantic Fleet. We’ve had ongoing conversations with state officials now, as well as Congressional field offices, regarding the ferry terminal operations, particularly around the Atlantic Fleet Bay Ferries as it relates to Customs Border Patrol and the funding mechanisms that are in place for baseline port services at that facility.”
Bar Harbor leases a portion of property on Route 3 to Bay Ferries so that the CAT can ferry to the town.
In 2018 Bar Harbor signed a $1.3 million, five-year lease with Bay Ferries that allows the 349-foot catamaran to use the Route 3 site, which is planned to be expanded into a town marina. The company had made millions of upgrades to the site. That contract was extended.
At the end of the 2025 season on October 15, 39,745 passengers and 16,233 vehicles had travelled the CAT ferry between Yarmouth, Nova Scotia, and Bar Harbor, Maine. This was approximately 10,000 less passengers than 2024 but the second highest total in four years. The peak use year was 2024.
One of the Nova Scotian government’s possibilities is to buy the CAT or another vessel. That means it would be a Canadian flagged ship and able to have a Canadian crew. It is currently using an American crew because it’s an American flagged vessel.
According to a February 13 CBC article by Michael Gorman, Honourable Fred Tilley said, “Anything is possible within the structure of the deal.”
Tilley added, “What we’re concerned about is getting the best possible deal for Nova Scotians.”
The article also says that Yarmouth Mayor Pam Mood hopes for a ten-year contract.
“The mayor said she’s thinking in particular about a hotel across the street from the ferry terminal in Yarmouth that’s sat vacant for years while the owner, Rodd Hotel and Resorts, waits to make a decision about whether to reopen it,” Gorman writes. “Among other things, the interim report found that all parts of the province see economic benefit from the service and that passengers using it tend to stay longer and spend more money than people who come to Nova Scotia by other means of transportation.”
Nova Scotia budgeted $21.6 million for the ferry last year.
Earlier in February, the Maine State Legislature Transportation Committee mostly came out in favor of a tweaked bill that still requires pilots on the CAT as it enters Frenchman Bay, but would have the state pay the $325,000 expense. Bay Ferries had initially asked for an exemption from the requirement to have pilots on board the ferry.
Pilots are meant to ensure that large ships (tankers, ferries like the CAT, cruise ships) enter harbors safely.
Throughout the United States, pilots board vessels like The CAT or cruise ships and cargo ships offshore, 24 hours a day, 365 days a year if the weather permits. The pilots’ job is to navigate those ships to ports. And then, they guide them out again. Typically, they employee local ship captains who employ local stern men to get them to the The CAT or other vessels.
The Bar Harbor Story is generously sponsored by Acadia Brochures of Maine.
LINKS TO LEARN MORE
Legislative Committee Divided Over CAT Ferry Pilot Rules.
NOVA SCOTIA-MAINE FERRY SERVICE RECORDED SECOND HIGHEST NUMBERS IN LAST FOUR YEARS
Follow us on Facebook or BlueSky or Instagram. And as a reminder, you can easily view all our past stories and press releases here.
Bar Harbor Story is a reader-supported publication. To receive new posts and support our work, consider becoming a free or paid subscriber. Thanks for being here with us and being part of our community too!
You can help us keep bringing you daily, local, free and independent news via people who live here.
Make a monthly donation
Make a yearly donation
Choose an amount
Or enter a custom amount
Your contribution is appreciated.
Your contribution is appreciated.
Your contribution is appreciated.
DonateDonate monthlyDonate yearlyIf you’d like to sponsor the Bar Harbor Story, you can! Learn more here.
THANK YOU FOR SUPPORTING OUR COMMITMENT TO YOUR COMMUNITY
Discover more from Bar Harbor Story
Subscribe to get the latest posts sent to your email.