BC Ferries has selected the China Merchants Industry (CMI) Weihai Shipyards to build four new vessels following a global procurement process that included a public request for proposal, comprehensive bid evaluations, international site visits, and independent third-party reference checks.
On Tuesday, June 10, BC Ferries announced the procurement for the vessels, which will replace four aging ships nearing the end of their service lives – each increasingly prone to mechanical issues and service disruptions – as part of BC Ferries’ long-term fleet renewal strategy.
“CMI Weihai is a global leader in passenger ferry construction, and shipbuilding more broadly,” said Nicolas Jimenez, CEO of BC Ferries, in a news release. “It was the clear choice based on the overall strength of its bid, including its technical capabilities, high-quality and safety standards, ferry-building experience, proven ability to deliver safe, reliable vessels on dependable timelines, and the overall cost and value it delivers for our customers – all essential as we continue to experience growing demand and the urgent need to renew our aging fleet.”
In their first 10 years of service, BC Ferries anticipates investing over $230 million locally on refits and scheduled maintenance for the four vessels and more than $1 billion over their expected 45-year lifespans, which is expected to generate about 17,200 job-years of employment, $1.2 billion in wages, and contribute $2.2 billion to B.C.’s GDP over their lifetime.
B.C. Conservative leader John Rustad accused Premier David Eby of turning his back on Canadian workers and handing a deal to Beijing.
“While the Premier was posing for cameras and excluding China from his Asian trade mission, he knew full well that B.C.’s largest ferry contract in years was going straight to China,” said Rustad in a news release. “You can’t claim to support Canadian jobs while handing them over to a foreign country.”
The Conservative Party says BC Ferries bypassed Canadian and allied shipyards – including a "credible Norwegian partner." They say reports indicate the government missed a critical production deadline with Norway.
“What happened to Canada First?” noted Rustad.
B.C. Minister of Transportation and Transit Mike Farnworth said though BC Ferries is an independent company responsible for their own operational decisions, he is disappointed more involvement from Canadian shipyards were not part of the contract.
"The four new vessels are clearly needed, and this contract will allow them to be in service more quickly and affordably than other shipyards could have delivered. They will increase BC Ferries reliability on major routes," noted an emailed statement from Farnworth. “I do have concerns around procuring services from any country that is actively harming Canada’s economy through unfair tariffs or other protectionist trade practices. I have shared these concerns with BC Ferries.”
CMI Weihai, which has also built vessels for Canada’s Marine Atlantic ferry company, is owned by China Merchants Group, a state-owned enterprise that has been marred with controversy around alleged debt-trap diplomacy schemes in Djibouti and Sri Lanka.
Despite an ever-changing geopolitical situation involving China – which has entailed ongoing global trade disputes – at a press conference on Tuesday, Jimenez says they and CMI Weihai have a "very, very strong contract that will give us all the protections we need and more inside this build process."
"We went through a rigorous process and we put in place a lot of due diligence to make sure that we understood the technical, and delivery, and country risks associated with making this decision," he told reporters.
BC Ferries also said that no Canadian shipyards submitted a bid, with most saying they didn’t have the capacity or timelines to take on a project of this size.
The ships will be built with diesel-battery hybrid propulsion systems and designed with the capability to operate on full electric power in the future. They are expected to significantly reduce greenhouse gas emissions, improve fuel efficiency, lower underwater radiated noise to better protect marine life, and offer more space for vehicles, passengers and upgraded amenities.
"This new class of modern vessels will bring much-needed capacity, efficiency, and reliability to a system that plays a vital role in connecting communities. From a national perspective, it’s encouraging to see an operator taking a practical and balanced approach, weighing safety, cost, and long-term operational needs to ensure the continued delivery of essential ferry service," noted Serge Buy, CEO of the Canadian Ferry Association, in a news release.
All four vessels are expected to be in service by 2031, and BC Ferries says they remain on track to introduce 18 new vessels in the next 15 years.
BC Ferries says disclosing the total construction cost could "compromise BC Ferries’ ability to secure the best value on future vessel procurements." However, the fixed-price contract to build the ships is within the approval limits provided by the BC Ferries commissioner, according to the release.
