Nova Scotia and Bay Ferries Ltd. have reached a deal to bring back the CAT Ferry service between Yarmouth and Bar Harbour, Maine, next year. The CAT, which wrapped up its 2026 service on Wednesday, will return for the 2027 season between May and October. The vessel is leased from the U.S. Navy. Minister of Public Works, Fred Tilley, couldn’t tell CTV Atlantic News what was standing in the way of a long-term deal. but he did say Bay Ferries are contracted to oversee the CAT Ferry service and they are leading negotiations with the American crew and vessel. The minister says the priority is to minimize any disruption to the service and in the meantime, continue the work to finding a long-term solution. “I think this is the best possible outcome right now for Nova Scotians,” said Tilley. “We’re able to extend that service because we know the folks in southwestern Nova Scotia, they rely on this service, the tourism industry, the restaurants, the local people. So, we’re very excited to, to be able to ensure that there’s a season next year. And we know the work isn’t finished.” Tilley couldn’t provide an exact figure but says the one-year contract for the 2027 sailing season is essentially the same as this year, and will see the province will give Bay Ferries close to $24 million again to oversee the operations. In a separate news release, Bay Ferries said the CAT transported more than 44,000 passengers in 2026, the second-highest number in the last five years. There were 39,745 passengers in 2025. Roughly 85 per cent of the total passengers in 2026 were American while Canadians made up 15 per cent. “We had a significant bounce back year despite many issues beyond our control as a company,” said Mark Wilson, president and CEO of Bay Ferries, in the release. “The vessel and our teams performed well on all accounts and we were able to grow the service bringing tens of thousands of high value visitors into Nova Scotia.” Bay Ferries says the 2027 CAT schedule will be available within the next two weeks. Nova Scotia spent roughly $21 million on the ferry service this year. With files from CTV News Atlantic’s Jonathan MacInnis For more Nova Scotia news, visit our dedicated provincial page