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In its report, the independent agency says the crew helped passengers safely down the ferry’s two evacuation slides and into life rafts where they were picked up by local boats. The fire started in the Holiday Island’s main engine room after its fuel injection system — repaired a day before — failed and caused fuel to spray onto the hot engine and ignite.

“The crew shut down the engine, attempted to close the fuel supply valves and beached the vessel on a nearby sandbar,� Étienne Séguin-Bertrand, the board’s senior marine investigator, told a news conference in Charlottetown.

He said the crew believed they had activated a carbon dioxide fire suppression system from the ship’s bridge; however, “the instructions were unclear and the system was not actually engaged.�

“Initially this went unnoticed, allowing the fire to grow and it wasn’t until 15 minutes later that the crew manually released the CO2,� said Séguin-Bertrand. “By then the fire had intensified.�

Despite efforts, the fire couldn’t be extinguished and the vessel was abandoned until the fire burned out two days later, leaving the ferry damaged beyond repair.

A report released nearly one year ago on vessel safety included three recommendations related to crew training, passenger evacuation procedures and the need for accurate passenger counts. But "many of these same issues" were identified on the Holiday Island, Séguin-Bertrand said. For example, the ship’s captain initially reported 182 passengers on board when the final count was 236.

“This is one example, but the message is clear: the same safety deficiencies are coming up again and again,� Séguin-Bertrand said.

The agency's report found that the crew aboard the Holiday Island had varying levels of training — and of familiarity with the life-saving equipment — and that it was unclear who was legally responsible for the ferry's safety. The ferry was operated by Northumberland Ferries but on behalf of Transport Canada.

In a statement Wednesday, Mark Wilson, president and CEO of Northumberland Ferries, said the company welcomes the safety board's findings, adding that 16 corrective actions have already been taken dating back to 2022 to improve the ferry's performance.

“These actions included enhancing our emergency training, revising and updating procedures and strengthening operational protocols,� he said. “We recognize that there is still more work to do and we will work with Transport Canada to ensure that the report’s findings are implemented in a timely and effective fashion.�

The board recommended that Transport Canada provide better guidance on who is responsible for vessel safety. 

“The findings of this investigation go beyond this single occurrence shedding further light on broader systemic risks related to vessel fires and the challenges of responding effectively,� safety board chair Yoan Marier told reporters.

Marier said the outcome for the Holiday Island could have been “a lot worse� — the ship was near the terminal, and the fire occurred in daylight and in manageable weather and calm seas. “Do not mistake luck for emergency preparedness,� he warned.

The board said its national investigation will include consultations with marine operators, firefighting services and ports to improve systemic safety gaps related to ship fires.

“The Holiday Island and others before it are canaries in the coal mine,� Marier said. They reveal cracks that if left unaddressed could widen into far more serious consequences.�

Over the past 35 years, Marier said the safety board has issued nine safety concerns and 10 recommendations related to fire safety, while in the last 10 years nearly 400 fires on commercial vessels have been reported to the agency.

This report by °µÍø½ûÇø was first published July 23, 2025.

— By Keith Doucette in Halifax