Say goodbye to the rust buckets that constantly break down. BC Ferries, a company owned and subsidized by the province of British Columbia, has recently announced its decision to purchase four new vessels from China Merchants Industry Weihai Shipyards, a state-owned shipyard in China. This decision has sparked significant controversy in British Columbia and Canada.
No Canadian Bids: BC Ferries stated that no Canadian shipyards submitted bids for the project. Seaspan, British Columbia’s largest shipbuilder, indicated they are currently busy with orders for the Royal Canadian Navy and Canadian Coast Guard and cannot compete with lower-wage countries on commercial contracts.
Cost and Value: BC Ferries CEO Nicholas Jimenez stated the decision was based on getting the “best possible deal for customers,” citing the Chinese shipyard’s technical capabilities, high-quality and safety standards, ferry-building experience, reliable timelines, and overall cost and value. While the exact contract value has not been disclosed, BC Ferries claims it fits within the approved budget and that building in Europe would be twice as expensive, and three times the cost if a Canadian company had bid.
Government Disappointment and Geopolitical Concerns: British Columbia’s Transportation Minister, Mike Farnworth, expressed disappointment that more involvement from Canadian shipyards was not part of the contract. He also raised concerns about procuring services from a country “actively harming Canada’s economy” with tariffs and protectionism, referencing ongoing trade disputes between Canada and China. Premier David Eby, while on an Asian trade mission that excluded China, has also expressed past concerns about China’s role in issues like money laundering and election interference.
Economic Impact and “Buy Local” Policy: Critics, including the BC Federation of Labour and the Opposition BC Conservatives, argue that the decision sends hundreds of millions of dollars out of the province and goes against the provincial government’s “buy-B.C.” rhetoric. They believe the contract should have been an opportunity to invest in domestic shipbuilding, create jobs, and stimulate the local economy.
BC Ferries’ Defense: BC Ferries maintains that the procurement process was global and thorough, including site visits and third-party checks. They emphasize the need to replace aging vessels quickly and affordably to avoid service disruptions. They also highlight that while the ships are built overseas, over $1 billion in maintenance and refits over the vessels’ 45-year lifespan is expected to flow back into the B.C. maritime sector.
Contract Protections: BC Ferries CEO Jimenez stated they have a “very, very strong contract” with the Chinese shipyard, with most of the payment tied to delivery and including refund guarantees and fixed-price terms to protect BC Ferries. They will also have a team of experts on-site at the shipyard throughout construction for oversight and quality assurance.
Party Backlash: Even within the ruling NDP, there has been internal criticism, with the provincial labour movement successfully passing an emergency motion at a party council meeting, rebuking the premier for not intervening to ensure the ships were built in B.C.
The new vessels are expected to be diesel-battery hybrid propulsion systems, with the capability to operate on full electric power in the future. The first of the four new ferries is expected to come into service in 2029, with the others following by 2031.
