The process that will determine how much British Columbians pay to travel with BC Ferries beginning in 2028 is now underway.

BC Ferries submitted its Performance Term Seven proposal to the independent BC Ferries Commissioner on Thursday.

The filing begins a lengthy review that will establish the financial and regulatory framework for ferry service from April 1, 2028, through March 31, 2032.

The proposal examines the funding required to maintain current service levels while renewing an aging fleet, upgrading terminals and other infrastructure, covering rising maintenance and operating costs, and making long-term investments across the coastal ferry system.

The company says only one of its 25 routes currently recovers its full cost through fares.

The remaining routes depend on a combination of cross-subsidization from busier routes and government funding.

That makes the review particularly important for communities including the Comox Valley, Powell River and the North Island, where residents rely on routes that may not generate enough fare revenue to cover their operating costs.

No new fare increase has been approved, and passengers will not see any immediate changes as a result of Thursday’s filing.

Current regulated fare increases are capped at 3.2 percent annually through March 2028.

The BC Ferries Commissioner sets the maximum system-wide average fare increase, while BC Ferries establishes individual fares within that limit.

BC Ferries has previously warned that customers could face fare increases of more than 30 per cent beginning in 2028 unless a sustainable long-term funding arrangement is developed.

The corporation says rising labour, fuel and maintenance expenses, along with the cost of replacing aging ships and infrastructure, are placing increasing pressure on the system.

In an earlier statement concerning the current price cap, BC Ferries said “significant investment is required in vessels, terminals and IT systems” to meet public expectations for a modern ferry service.

The company has also said it is pursuing efficiencies and reviewing its capital plans before passing additional costs along to passengers.

In a July filing, BC Ferries said it had removed or deferred more than $3 billion in planned vessel, terminal and information-technology investments through 2038.

The Commissioner will now review the Performance Term Seven submission before determining the price cap for the next four-year period.

The Commission regulates overall fare increases and considers major capital expenditures, while the provincial government determines the routes BC Ferries must serve, establishes minimum service levels and provides public funding.

For passengers, the filing represents the beginning of the process rather than a final decision.

Current fares and regulated increases remain in place through March 2028 while the review determines what comes next.