Item - 2025.EX21.3

City Council considered the following Items together:

EX21.3 headed, “Toronto Ferry Service Operational Review”; and

CC28.4 headed, “Update on Electric Ferries Shoreside Infrastructure and Ferry Terminal Improvement Projects”.

The Executive Committee recommends that:

1. City Council direct the Deputy City Manager, Corporate Services to report back to the Executive Committee by the fourth quarter of 2025 on implementation progress.

This report responds to City Council’s directive on October 9 and 10, 2024 (EX17.3), to  conduct a review to determine the organizational structure best suited to address the asset planning, management and maintenance, operations and user experience of the City of Toronto's ferry system, the Jack Layton Ferry Terminal and the Island ferry docks, and to report back to Executive Committee in the first quarter of 2025. This review comes at a pivotal time, recognizing the crucial role Toronto’s Ferry service plays for Torontonians, visitors, and the broader ferry network, new safety regulations coming into force in 2025, the introduction of two state-of-the-art electric ferries in 2026 and 2027, and related shoreside infrastructure and terminal improvements underway.

The City of Toronto engaged Greenline Marine Inc. (“the Consultant”) to support its operational review of the ferry system. The objective was to assess the service’s practises relative to industry standards and benchmarks and provide recommendations to staff to ensure the City’s ferry operation is aligned with those standards and can respond to the evolving ferry industry landscape in Canada. An executive summary of the Consultant’s report is attached.

The review first established that Toronto’s Ferry Service is an essential transportation link for both residents and visitors to the Toronto Islands, and the Toronto Islands Residential Community Stewardship Act, 1993 mandates that municipal services be provided to the island, including ferry services. Further, Toronto's ferry service handles one of the highest passenger volumes in Canada. According to 2023 ridership data, Toronto’s Ferry System ranks seventh amongst Canada’s busiest ferry routes who collectively carry more than 66 percent of the country’s passenger ferry volumes, and is among the top four routes during the height of the summer season, with over 18,000 daily passengers at peak times. It is a busy, high-volume service that has generally performed well and operated consistently and safely.

The review, informed by leadership and staff interviews, review of data and documentation, and stakeholder meetings, ultimately found that Toronto’s ferry service is compliant with all regulatory requirements and meets broad policy expectations.

However, it is not fully consistent with ferry industry norms in key areas such as asset management, safety management, organizational structure and workforce development. Additionally, enhanced stakeholder engagement and public communication strategies would benefit the service and those who use and rely on it.

The Consultant provided seven recommendations to enhance the service. Staff have accepted these recommendations and are taking and will continue to take a variety of actions, including establishing a structured asset management plan for the City’s existing and incoming ferry fleet, developing a robust Safety Management System aligned with Transport Canada's new regulations, continued and enhanced targeted recruitment and retention strategies for specialized marine staff, allocating resources to support a greater focus on areas like customer experience and safety management, and elevating ferry operations within a City division's structure.

Finally, the Consultant identified key principles to guide the City’s decision-making on the appropriate organizational position for the service, outlined in this report. On this basis, the City will reposition the ferry operation within the Fleet Services Division, which has attributes aligned with the guiding principles, including experience and capability in the opportunity areas identified by the Consultant. There will be no loss of ferry operations Full Time Equivalent positions (FTEs) resulting from this transition, and the City anticipates allocating additional resources over time to support the operation. For example, the City will ensure Fleet Services is equipped with the necessary customer experience expertise and focus to lead this important public-facing service.

Staff will formally transition the authority of the ferry operation from Parks and Recreation to Fleet Services by Q4 2025. In the interim, the Deputy City Manager, Corporate Services will oversee all aspects of implementation, including communications, resourcing and asset management, in partnership with the Deputy City Manager, Community and Social Services. Staff will also continue to implement the Consultant's recommendations outlined in this report over time.