Queen of the North Insurance Payout Revealed

By 250 News

B.C.Ferries has released it’s year end report and it reveals there was a $67.9 million dollar payout from the insurance on the loss of the Queen of the North.  

The ship sank after running aground on the east side of Gil Island at the end of March.  Two of the 101 people who were on board at the time are presumed drowned.  B.C. Ferries is shopping for a new ship, and there are reports it may have found one, but it wouldn’t be ready for service until at least next year.

The report also predicts an increase in the fuel surcharge.  It says fuel prices were much higher than anticipated, and even though more than $11 million dollars was picked up in fuel surcharges that wasn’t enough to cover the cost increases.

“It is important to note that all of our earnings are invested back into our terminal and vessel construction programs,” said BC Ferries’ President and CEO, David L. Hahn. “Over the next five years, we will invest $200 million in our terminals and add eight new vessels at a cost of $1 billion to ensure the continued safety and reliability of our fleet.”

The year end shows revenues were up $14.7 million dollars, but operating expenses were also up by more than $4.5 million.

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