10/27/2014 03:00 EDT | Updated 12/27/2014 05:59 EST

Ottawa to buy $44.6 million replacement ferry for Bay of Fundy service

HALIFAX - Ottawa has agreed to purchase a ferry for the Bay of Fundy service between New Brunswick and Nova Scotia at a cost of $44.6 million.

The MV Blue Star Ishtaki, purchased from a private ferry operator in Greece, is expected to replace the MV Princess of Acadia in 2015 after the vessel is modified to meet Canadian safety standards.

Bay Ferries Ltd. operates the year-round service between Saint John, N.B. and Digby, N.S.

The federal government says it has spent $38 million in support of the service since 2006.