BAR HARBOR — Acquiring the old Nova Scotia ferry terminal and converting it to cruise ship use is seen as a potential boon for local, state and even international economies.

A coalition that includes the Maine Port Authority, town of Bar Harbor and the local Chamber of Commerce have backed a bill presented to the Legislature’s Appropriations Committee to authorize a general fund bond issue up to $3 million to purchase the facility from the Canadian government.

Bar Harbor is Maine’s most visited cruise ship port, with 136 calls and an estimated 166,669 passengers expected for this year’s May-October cruise season.

Many days see one and up to four ships in port. Currently, passengers rely on tenders to get to a private facility adjacent to the town pier and a congested parking area with limited space for tour buses. Shorter visiting hours are believed to impact cruise ships’ economic benefit.

The old ferry terminal, just outside the village, would allow ships to dock, let passengers get on and off at will and, of course, spend more money in town. It would relieve congestion in the center of town because passengers would not arrive via tender en masse and the 4.5-acre property could accommodate tour and public bus traffic.

“Right now, it’s controlled chaos,” Town Councilor Paul Paradis said of current facilities. “This would further control the chaos and make a positive impact.”

Sen. Brian Langley, R-Ellsworth, who presented the bill, sees local and regional benefits.

“It’s a tremendous opportunity for economic development. I see it in three circles; around Bar Harbor, around the Ellsworth area, and the third circle would cover eastern Maine. Cruise ships coming into Bar Harbor bring boatloads of money to businesses,” he said, but a regional impact could follow.

“If the ships were able to dock, tours could start earlier in the morning. You might see, for example, foliage tours that head off-island and east. You might see a secondary benefit for services provided to ships—repairs and maintenance, for instance,” he said.

“Lastly, for the region, if a ship is docked, they could be provisioned with Maine products—palettes of blueberries, crates of lobsters. Regional bus lines might provide tour buses—that’s more jobs even farther away.”

Also, said Langley, acquisition could ensure the facility remains a U.S. Customs and Border Protection Class A Port of Entry, for import/export and immigration purposes. Such status is considered critical for cruise ships coming from abroad.

FIRST LINK

The first ferry linking Maine and Canada began running from Bar Harbor 60 years ago, but was discontinued in 2009, due to the elimination of Canadian subsidies, declining use, more stringent U.S. immigration requirements and the cost of service.

In 2011, a study determined the terminal is a valuable asset capable of conversion for the valuable cruise industry, “one of the fastest growing tourism products in the entire world,” the study said.

After acquisition, upgrade costs are estimated at $16.7 million. According to the study, profitable operation would pay for improvements.

“We’re pretty much at capacity now,” Paradis said of the current facility. “There’s really no room for any growth. Our fear is that ships will leave the region because of not being able to efficiently call on Bar Harbor. We’re seeing that now:  Research done by our consultant has shown some ships that don’t like to [rely on the small tender vessels to shuttle passengers to town] aren’t currently calling on Bar Harbor.”

Sale of the property to a private entity, he said, could eliminate its use as working waterfront.

Paradis cited other potential opportunities: a longer tourism season, more and larger ships, additional sales tax earnings for the state, and multiple users such as water taxis and a reactivated ferry to Nova Scotia.

On the last point, Portland’s ferry reactivation this year will perhaps provide a case study. The high-speed catamaran that was Bar Harbor-Nova Scotia’s last ferry switched to a Portland-Nova Scotia run in 2007, but ceased operation after 2009.

“It was not an economical service,” said Portland’s waterfront coordinator, Bill Needleman, citing high fuel costs.

Ferry service boots up again this spring with the Singapore-built Nova Star, operating from a former Bath Ironworks terminal now revamped with state-of-the-art passenger and service buildings and berths, and renamed the Ocean Gateway.