Inside the little-known drama over who pays for the CAT ferry’s border agents

Maine’s Border‑Ferry Deal Raises Questions About Fairness and Cost

The cat‑shaped high‑speed ferry that carries up to 800 passengers and 160 cars between Bar Harbor, Maine, and Yarmouth, Nova Scotia, has long been a staple of New England tourism and a vital link for Canadian commerce. Yet behind the glossy deck of the vessel lies a controversial contract that has drawn the attention of Maine lawmakers, the Canadian federal government, and the U.S. Customs and Border Protection (CBP) agency.

A Seasonal Lifeline

The Canada‑to‑America Trans‑Atlantic (CAT) ferry operates only between May and October, with a single daily trip to Nova Scotia. According to an economic study released by the province of Nova Scotia in 2026, the service brings a net benefit to the Canadian economy, encouraging longer stays and higher per‑capita spending by travelers compared with those who arrive by car or air. The ferry’s seasonal schedule means the vessel is on the water for roughly five months of the year.

The CAT is operated by Bay Ferries, a company based in Portland, Maine. Its president and CEO, Mark Wilson, said that ridership grew steadily from 2022 to 2024, though it dipped in 2025. He expects the 2026 season to surpass last year’s numbers and approach the 50,000 passengers and nearly 20,000 vehicles that used the ferry two years ago.

The Unusual CBP Arrangement

In 2019, Bay Ferries entered into an agreement with CBP that required the agency to staff the Bar Harbor port with five full‑time officers for the duration of the contract, even though the ferry runs only once a day for half the year. Wilson said the company signed the deal “under duress,” fearing that without CBP’s presence the ferry could not operate. “We really felt that we had no choice but to sign that contract,” he told the Maine‑Canadian Legislative Advisory Commission in February.

The cost of CBP staffing is just under $1 million per year—about five percent of the ferry’s total $21 million annual expenses. CBP’s spokesperson says that the agency is “only able to process ferry passengers under the current terms of the agreement.” The federal agency added that the terms were “fully known by the operator before the agreement was signed.” While CBP is a federal agency, the cost is passed partly to customers: a $10 fee added to each ticket covers roughly $400,000 of CBP’s expenses.

Canada’s federal government pays the bulk of the ferry’s operating subsidies, and the province of Nova Scotia has spent tens of millions of dollars upgrading the border‑security facilities in Bar Harbor. Despite that investment, the CBP arrangement has sparked accusations of unfairness from Maine officials.

Legislative Scrutiny

Maine’s bipartisan legislative commission, led by Representative Dan Sayre of Kennebunk, has called the arrangement “unfair” and urged the state’s congressional delegation to intervene. In a letter to Senators Susan Collins and Angus King and Representatives Jared Golden and Chellie Pingree, the commission highlighted the economic importance of the ferry for the town of Bar Harbor and the wider Maine–Nova Scotia relationship. Sayre said, “People don’t tolerate an unfair situation forever.”

The commission’s appeal coincides with a broader context: a trade dispute between the United States and Canada that erupted in August 2026, following a speech by Canadian Prime Minister Mark Carney in Davos. While the dispute focuses on tariffs and trade policies, the CAT ferry’s contract has emerged as another point of contention.

The commission has also pressed for a review of CBP’s “baseline service” status. Historically, CBP staff would travel from the Bangor office to Bar Harbor for inspections. In 2013, CBP began allowing private entities to fund overtime services beyond the agency’s appropriated budget. When Bay Ferries sought to restart service in Bar Harbor a few years later, CBP said the only way to obtain necessary customs services was through this program and to pay for full‑time staff.

Nova Scotia Premier Tim Houston confirmed the province’s commitment to the ferry, saying “We’re trying to negotiate with the United States. It’s difficult to do that right now. But that doesn’t change our commitment to the service.” Yet, the Premier noted that negotiations with U.S. officials are currently stalled.

The Cost Debate

According to Bay Ferries’ attorneys, the current CBP contract is the only one of its kind. The firm also represents the Portland Press Herald in legal matters. A company planning a ferry route between California and Mexico, Azteca Ferries, reportedly faces a similar requirement but has not yet commenced operations.

CBP officials emphasize that the ferry’s return to Bar Harbor after a pause in 2009 would be considered “new service” and that no baseline staffing is available. In 2024, CBP’s Troy Miller wrote to Senator Collins that the U.S. would continue processing cruise ships and yachts at Bangor, but the agency would not reassign CBP staff to Bar Harbor for the ferry.

The CBP spokesperson also pointed out that the agency’s private‑partner program is voluntary, but that Bay Ferries would “be a bit of a suicide mission” if it exited the agreement. “They wouldn’t service the port and we would basically be stranded,” Wilson said.

Maine officials argue that the cost of CBP’s full‑time staff is disproportionate to the ferry’s brief operational period. They suggest alternatives, such as paying only for the time the officers actually work on ferry business or adjusting staffing on a seasonal basis. However, CBP officials say there is no mechanism for prorating staff for a short‑season service.

Economic Stakes for Bar Harbor

Bar Harbor’s town officials have not responded to interview requests. The town’s revenue from ferry tickets is critical to meeting the debt service on the $3.5 million purchase of its terminal, according to local representative Gary Friedmann. The town’s economy benefits from the influx of travelers from Massachusetts, New York, New Jersey, Connecticut, and beyond, many of whom spend money in Maine on their way to Canada.

Looking Ahead

The CAT ferry’s contract is set to expire this fall. While Bay Ferries, CBP, and Nova Scotia officials have met several times to negotiate, a resolution has not yet been reached. In addition, a new competitor—Scotia Prince Cruises—has hinted at a possible service between Portsmouth, New Hampshire, and Nova Scotia, which could further pressure the existing agreement.

Maine lawmakers hope that the state’s congressional delegation—particularly Senator Collins, who oversees the federal budget—will pressure CBP to rethink the arrangement. The CBP’s stance remains unchanged: the current terms are necessary for the agency to process ferry passengers. Whether that position will hold as the contract nears its end remains to be seen.

For now, the CAT ferry will continue its seasonal voyage across Casco Bay, carrying tourists, commuters, and Canadian visitors. Yet beneath the waves, a debate over fairness, cost, and the future of a key cross‑border link persists.