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Change ‘can’t come fast enough’ at BC Ferries: Transport minister

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With a critical vessel in drydock and an erroneous nine-sailing wait time recently posted on its website along a major route, frustration is mounting with BC Ferries.

Transportation and Infrastructure Minister Rob Fleming said Wednesday improvements to technology and a “complete overhaul” of the system “can’t come soon enough” at BC Ferries, which is subsidized by hundreds of millions of provincial dollars each year.

“Yesterday we potentially turned away loads of customers. People were relying on inaccurate information and making just travelling decisions based on that. That can’t happen,” Fleming said, pushed by reporters at an unrelated Victoria press conference Wednesday.

“I know the CEO and the team there are working on ensuring that it doesn’t happen again for the remainder of the summer. This is a difficult period.”

On Tuesday, BC Ferries’ website showed a nine-sailing wait for anyone travelling from Tsawwassen in Delta to Swartz Bay in Victoria. In fact, the delay amounted to one sailing.

After the confusion, BC Ferries attributed the incorrect information to people not showing up for reservations, but acknowledged it needed to do a better job of manually overriding the system with up-to-date, correct information.

Fleming said his understanding is that the service woes are related to a “general underinvestment” and outdated IT systems that have caused problems in the past as well.

“They’ve assured our ministry it will be fixed within a week and won’t be happening again.”

Another notice posted on BC Ferries’ website is warning travellers of a possible delay in processing compensation and refund requests, noting that a high volume of applications has been received.

“Our normal response time is between seven and 14 days, but currently it may take four to six weeks. To improve our response time, we are hiring additional staff and working on process improvements,” it reads.

The volume may be linked to the thrice drydocked Coastal Celebration, which underwent an annual refit with an expected return-to-service date of June 15. While in dry dock, however, shipyard crews discovered an issue with the stern tube bearings and rudder stock, requiring sea trials before its return.

On June 28, BC Ferries revealed that the vessel would undergo an “unplanned” and “extended refit,” requiring it to reassign more than 6,600 bookings. That impacted the Canada Day long weekend and meant eight fewer daily sailings would run between Tsawwassen and Swartz Bay between June 28 and July 3.

The vessel was anticipated to return to service on July 4, and on July 17, BC Ferries warned it was experiencing mechanical difficulties on its propulsion system, requiring more cancelled sailings.

Two days later, the Coastal Celebration returned to dry dock, resulting in eight fewer sailings per day between Tsawwassen to Swartz Bay.

 

On Wednesday afternoon, BC Ferries said the Coastal Celebration is on track to return to service on Friday, July 28.

However, the ferry may have limited food services on the first day of service.

“Customers with bookings on the Coastal Celebration on Friday are advised to arrive as planned,” staff said in a release.

“If there are any changes to the vessel’s scheduled return, customer care will contact them directly.”

The Coastal Celebration performs eight sailings per day between Tsawwassen and Swartz Bay, and will increase capacity for passengers and vehicles travelling between Vancouver and Victoria.

The vessel carries 310 vehicles and 1604 passengers and crew.

BC Ferries has said it’s running three vessels on the Tsawwassen-Swartz Bay route, but that space is limited for vehicle passengers who do not have a reservation. Meanwhile, it’s encouraging travellers to consider alternate routes between Vancouver Island and the mainland, such as the Tsawwassen-Duke Point (Nanaimo) and Horseshoe Bay-Departure Bay (Nanaimo).

CEO Nicholas Jimenez has vowed to do better overall, but admits crew shortages are posing a challenge.

“Our expectation is we’ve got crews and vessels ready to go, so that is how we run the business and that is every expectation of what will happen,” he told Global News on July 5.

“Can I guarantee no one is going to get sick? can I guarantee we won’t have an emergency repair? Of course not.”

Fleming said he expects transparent public updates on the status of the Coastal Celebration as it’s “desperately needed” in the water before the next long weekend.

“There’s a number of things that the executive leadership of B.C. Ferries is taking from that poor experience to put into place for the coming long weekend, which is actually a busier, long weekend than Canada Day itself, and some of that is around customer care is certainly around up to date, accurate information,” he explained.

The B.C. government bolstered BC Ferries’ coffers with an extra $500 million in February to help prevent double-digit fare increases in the next four years, but doesn’t make direct operational decisions within the company.

“But what we can do is help support them, make investments,” he said. “What is coming in BC Ferries and happening now, is the most significant capital investment on new vessel replacements, replacing outdated technology systems and making the company future-oriented and performing at its absolute optimal best.

“It’s the third-largest ferry fleet in the world. It’s a complex operation. I would be very upset if I wasn’t seeing progress on some of the other things that were affecting the company here in late summer of 2023.”

BC Ferries has hired more than 1,200 people for the fleet this summer and is about to reopen wage talks with its unionized members.

 

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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