Nova Scotia ferry from Yarmouth to Maine to lease Bar Harbor terminal

Yarmouth ferry to sail into Bar Harbor The Yarmouth ferry will be sailing into Bar Harbor and taxpayers will foot the bill needed to make the switch from Portland.

HALIFAX -- The ferry company the Nova Scotia government subsidizes to provide a service from Yarmouth to Maine is announcing a $1.3-million, five-year lease with the Town of Bar Harbor to use the port's terminal.

A news release issued on Tuesday says Bay Ferries will pay Bar Harbor at least $264,000 a year for the use of the terminal.

However, the province will also be paying to fix the terminal's dock, build a loading ramp and make other upgrades, according to the agreeement.

The news release also suggests Nova Scotia will be paying part of the cost of border control in the United States, stating "Bay ferries/province of Nova Scotia will be required to make a contribution to the cost of this service."

The company said it expects to reduce fuel consumption because Bar Harbor is closer to Yarmouth than the existing terminal in Portland.

The news release says, "It is hoped that moving the service to Bar Harbor ... will eventually lower the cost to government in the range of ($5 million to $10 million) per year."

In the three years since Bay Ferries took over the service from Nova Star Cruises, Nova Scotia government has provided over $37 million to subsidize operations and for capital upgrades.