Replacing the Belleville Street ferry terminal just got more expensive.
The province says it will begin the second phase of construction on the Inner Harbour terminal this summer with a revised budget of $416 million — $85 million more than what was approved last year.
The Belleville terminal is used by FRS Clipper and Black Ball Ferry line, which provide foot-passenger and vehicle service to Seattle and Port Angeles, respectively.
The Ministry of Transportation said the cost increases are due to complex geotechnical and seismic conditions, site constraints and significant soil contamination that will require extensive remediation.
A statement from the ministry said inflation and safeguarding against the economic impact of tariffs on steel and other products also bumped up the budget.
The federal government told the province it will increase its contribution to $45.2 million, up from a previously announced $41.6 million last July.
The remaining $370.8 million will come from the province, according to the ministry.
Construction of the new facility involves demolishing the existing Clipper terminal and building a new pre-clearance building to modern border-security standards.
Aging wharf facilities will be replaced and a new commercial-goods processing facility will be built on the site.
The new terminal and customs facility is expected to make travel easier by allowing passengers to complete the customs and immigration process in Victoria prior to disembarking in the U.S.
Construction is expected to start by the end of June and will ramp up later in the summer, with the entire project expected to be completed in 2028.
Vancouver-based Pomerleau Inc. was awarded the design-build contract for the next phase.
The initial phase of the terminal project was completed in March. The work started with upgrades to the Steamship building for a temporary terminal and wharf for the FRS Clipper and U.S. Customs and Border Protection during the main construction period over the next three years.
Paul Nursey, chief executive of Destination Greater Victoria, which promotes the region’s tourism and conference businesses, said his organization has championed the project for more than three decades and welcomes the steady progress.
“We recognize the importance of this project and are encouraged by the federal government’s increased investment,” Nursey said in a statement. “Clear dates and timelines remain a priority for our members, and we look forward to the significant benefits this project will bring to Greater Victoria’s visitor economy once complete.”
Bruce Williams, chief executive of the Greater Victoria Chamber of Commerce, said the chamber has been an outspoken proponent for modernizing Belleville terminal for decades. “With so much uncertainty affecting the economy, we support this project as an important investment in the future of Greater Victoria and as a confirmation of the value the Clipper and Coho bring to our region,” he said in the statement.