TRAN Appearance: Main Estimates 2023-2024 and Supplementary Estimates (C) 2022-2023

53. Marine Atlantic Inc - New Vessel

Marine Atlantic Inc. – New Vessel

  • The Government of Canada is committed to helping Marine Atlantic Inc. deliver a safe, reliable and cost-efficient ferry service connecting Newfoundland and Labrador to mainland Canada.
  • Following a competitive procurement process, open to domestic and international bidders that was overseen by an independent fairness monitor, Marine Atlantic Inc. entered into a 5-year charter agreement with Stena North Sea Ltd. to supply the new vessel.
  • Construction of the new vessel is currently on time, within scope and within budget. It is to be delivered in early 2024 and enter service in spring 2024 after proper testing and training.  

SUPPLEMENTARY MESSAGES

  • Marine Atlantic Inc. is an independent Crown corporation that operates at arm's length from the Government of Canada and is responsible for managing its business decisions and operations, including those related to procurement.
  • The procurement process was open to both domestic and international shipyards and ferry vessel owners. The entities that qualified for the Request for Proposals were not Canadian.
  • The winning proponent, Stena North Sea Ltd., contracted with China Merchants Jinling shipyard to build the vessel. Marine Atlantic’s vessel will be the 10th in a series of 12 similar vessels called E-flexers designed by Stena and built at this shipyard.
  • Leasing a vessel with the option to purchase after 5 years creates incentives for the owner/builder to produce a quality product, since Marine Atlantic Inc. may return the vessel at the end of the lease if the vessel does not perform at a satisfactory level.

BACKGROUND

  • The ice-classed vessel is currently under construction by Stena at the China Merchants Jingling Shipyard in Weihai China.
  • MAI has third party local representation on site to observe the vessels quality assurance process which reports daily to MAI via the MAI project team. 
  • The vessel incorporates the latest accessibility standards, can carry up to 1000 passengers, has 146 passenger cabins (including pet friendly cabins), 40 passenger pods, a variety of food service options, seating lounges, a children’s play area, and a kennel for pets. 
  • The ship will be compatible for use on both the Port aux Basques and Argentia services. 

The new vessel will represent MAI’s green shift and commitment to the environment. When delivered it will be one of the most advanced vessels of its type in the world. The design includes the following energy efficient technology, aligning with the Government’s current focus on reducing carbon emissions:

  1. The vessel will incorporate dual-fuel technology allowing for the use of transition and alternate fuels – including ultra-low sulfur diesel, and Liquid Natural Gas once available in the market.
  2. The vessel will be equipped with batteries to further reduce its carbon footprint.
  1. The energy storage solutions onboard will offset significant emissions which traditionally occur in maneuvering modes.
  2. Interface with existing Automated Mooring Systems in North Sydney and Port aux Basques ports, reducing energy requirements during berthing operations. 
  3. Onboard operational systems including lighting, heating, and ventilation including modern waste energy reduction and recovery solutions. 
  4. Significant allowances in the design are focused on supporting the Electric Vehicle surge. 
  5. The vessel will also offer enhanced power and thruster capability for maximum maneuvering ability during docking and undocking.

The ship will also be constructed with specific measures to reduce underwater noise, thereby reducing the impact on marine life.

The project remains on time and within budget with significant milestones achieved, including the first float on March 28, 2023:

The first float of the vessel Stena North Sea Ltd is building to lease to Marine Atlantic Inc. beginning in 2024.