Location: British Columbia
Issue/Source: BC Ferries’ Plan to Build New Vessels in China Takes Heat from Both Sides of the Aisle (Global News)
Date: July 2025
Suggested Responses.
- BC Ferries is an independent organization that makes its own commercial decisions. The Government of Canada has no control over BC Ferries’ decision-making processes.
- I was displeased to learn of BC Ferries’ decision to select a Chinese shipyard to build its four new vessels.
- At a time of unjustified Chinese tariffs and when Canadian workers are being battered by tariffs from the United States, we need to support Canadian workers.
- I have raised my concerns with my counterpart in Britis. Columbia, the Honourable Mike Farnworth, and have asked the province to provide concrete assurances on three fronts:
- That a credible security and cybersecurity assessment was conducted to protect Canada’s coastal infrastructure from foreign vulnerabilities.
- That robust safeguards are in place to prevent reliance on foreign-controlled systems, maintenance regimes, or parts supply chains that may expose our operations to geopolitical risk.
- That no portion of federal funding will support the procurement of these offshore-built vessels.
- I have also written a letter to all agencies and corporations under my control encouraging them to support Canadians and free trade partners with reciprocal procurement agreements.
BACKGROUND INFORMATION
- On June 10, BC Ferries announced that it had selected China Merchants Industry Weihai Shipyards (CMI Weihai), following a due diligence process, to build four new major vessels. The first of the four new vessels is scheduled to enter service in the spring of 2029.
- B.C. Transportation Minister, Mike Farnworth, is quoted as stating that, while BC Ferries is an independent organization that makes its own commercial decisions, he was "disappointed (in) the fact that there is not more Canadian content" in the plan.
- The vessels being procured will be owned and operated by B. Ferries. B. Ferries is a private company, not a provincial Crown corporation. Its sole shareholder is the BC Ferry Authority, an independent no-share capital corporation.
- According to media reports, to help ensure quality standards are met, B. Ferries will have a full-time, on-site professional team to monitor construction progress and safety, with the oversight covering not only the shipyard but also all subcontractors and suppliers.
- According to BC Ferries, CMI Weihai has proven experience meeting Transport Canada standards, and has built modern ferries for operators such as Canadian Federal Crown Corporation Marine Atlantic’s services in the Maritime provinces, and Swedish giant Stena Line, which is one of the world’s largest ferry operators, with major routes spanning northern Europe.
- The Canada Infrastructure Bank has provided a $1 billion loan guarantee to B. Ferries to support this project.
- Through the National Shipbuilding Strategy (NSS), the Government of Canada is making significant investments to help re-build Canada’s marine industry and to support good middle-class jobs as well as Canadian companies.
- National Shipbuilding Strategy contracts awarded since 2012 are estimated to contribute close to $38.7 billion ($2.8 billion annually) to Canada's gross domestic product and to create or maintain approximately 21,400 jobs annually.
- In 2024 alone, the Government of Canada awarded approximately $6.1 billion in new contracts to Canadian companies under the Strategy, including approximately $82.53 million to small and medium businesses.
- The Government of Canada has provided long-standing financial support to the Government of British Columbia for coastal ferry services within the province.
- From 1977 to the end of the 2025-26 fiscal year, Transport Canada will have provided nearly $1.12B to the Government of British Columbia, including approximately $37.8M in 2025-26.
- The federal government has also provided other financial support to B. Ferries, including $308 million to cover operational losses due to the COVID-19 pandemic and to limit average fare increases.
- The Canada Infrastructure Bank is providing BC Ferries with a $75 million dollar loan to BC Ferries to help purchase four net zero emission ferries and install the required charging infrastructure. This is a separate and distinct project – the contract for these vessels was awarded to the Dame. Shipyards Group (based in Netherlands but the vessels are being built in Romania). All four vessels are expected to be in service by 2027. Damen has built the last six Island Class vessels for BC Ferries.