Latest news with #BCFerries'
Winnipeg Free Press
07-07-2025
- Business
- Winnipeg Free Press
Transport committee to debate whether to study BC Ferries' Chinese ship contract
OTTAWA – The House of Commons transport committee is meeting to decide whether to study BC Ferries' decision to purchase four Chinese vessels. BC Ferries announced last month that it hired China Merchants Industry Weihai Shipyards to build four new ships after a five-year procurement process that did not include a Canadian bid. Transport Minister Chrystia Freeland sent her B.C. counterpart a letter on June 20 saying she is 'dismayed' by the deal and expects BC Ferries to mitigate potential security risks. She also asked the B.C. government to confirm that no federal funding will be diverted to purchase the ferries. The Canada Infrastructure Bank contributed $1 billion to the deal and said in a June 26 statement that the new ferries 'wouldn't likely be purchased' without this financing. Monday Mornings The latest local business news and a lookahead to the coming week. The transport committee meeting is scheduled to start at 12 p.m. EDT. This report by The Canadian Press was first published July 7, 2025
Cision Canada
26-06-2025
- Business
- Cision Canada
The CIB supports BC Ferries' essential service upgrades Français
Loans help deliver 8 vessels to expand capacity, cut emissions and create quieter commutes for passengers BC Ferries' new vessels will expand capacity for passengers and vehicles on its busiest routes. Replacing end of life vessels enhances BC Ferries' ability to deliver reliable service, minimize disruptions and deliver a more efficient travel experience. CIB loans are expected to reduce the pressure of fare increases on BC Ferries' customers and help BC Ferries achieve environmental goals by introducing electric-ready vessels. A large portion of the New Major Vessels loan is targeted to fund infrastructure required to support ferry electrification and associated emissions reductions. A study by InterVISTAS estimates that the new major vessels will support thousands of local direct and indirect jobs and the movement of goods. VANCOUVER, BC, June 26, 2025 /CNW/ - The Canada Infrastructure Bank (CIB) recently made its second investment in modernizing BC Ferries' fleet and terminal renewal efforts aimed at reducing service disruptions due to mechanical issues, enabling vessel electrification and increasing overall fleet capacity. By providing financing at a lower cost than traditional market rates, the CIB's investment will also help reduce pressure on future fare increases. The CIB's initial $75 million investment in four hybrid battery-electric Island Class ferries and the related shore-side charging infrastructure is on track for completion by 2027. The new Island Class vessels are part of BC Ferries' ongoing efforts to replace its existing fleet over time with quieter and more environmentally friendly vessels. The vessels will be capable of operating exclusively on battery-electric power, once shore-side charging is installed and the new propulsion systems are expected to further reduce underwater radiated noise for marine life. To help address aging vessels for some of the busiest lower mainland and southern Vancouver Island routes, the CIB has committed to providing an additional loan of up to $1 billion towards the purchase of higher-capacity hybrid New Major Vessels and the related future terminal upgrades. This loan is allocated as two tranches, up to $690 million towards vessels and up to $310 million towards electrification infrastructure. The CIB's loan will assist with the replacement of vessels that are between 48 and 61 years old and help to reduce pressure on fares associated with capital upgrades. The design of the vessels includes engines capable of using biodiesel and battery-hybrid propulsion initially, allowing for conversion to full battery-electric operation in the future, a step that is expected to significantly reduce environmental emissions from operations. BC Ferries is currently planning for the four new higher-capacity hybrid ferries to deliver quieter and more efficient operations on the major routes between Vancouver and Victoria as well as Vancouver and Nanaimo. The vessels are designed to be capable of accommodating 2,100 passenger and 360 vehicles, up from the current average capacity of 1,200-1,500 passengers (+52%) and 250-310 vehicles (+24%). Without CIB financing, the costs of the new ferries and electrification infrastructure would need to be borne more fully by BC Ferries' customers and every year of delayed purchase risks more service disruptions, reduced travel options and fewer employment gains. It is estimated the four vessels alone will result in more than a $1 billion invested by BC Ferries in the local maritime sector for all the repair and refits required over their lifespans. A preliminary independent economic analysis also estimates that the employment impact of BC Ferries' New Major Vessels will be equivalent to more than 360 new jobs annually in BC, including direct, indirect, and induced impacts, generating $27 million annually in wages with an associated GDP impact of $48 million. The new vessels are also expected to facilitate an estimated $660 million in incremental commercial goods movement each year between BC's lower mainland and Vancouver Island. BC Ferries provides year-round passenger and vehicle ferry services with a fleet of 37 vessels serving 25 routes out of 47 terminals that are spread over 1,600 km of BC's coastline. In fiscal 2025, BC Ferries carried its highest volume of traffic ever, with 22.7 million passengers and 9.7 million vehicles travelling across more than 90,500 round trips. Endorsements: The CIB's partnership with BC Ferries further helps to improve one of the world's largest ferry networks. In addition to their environmental benefits, the new larger vessels will have the capacity to transport more people and vehicles on some of its marquee routes, extending the network's capacity. This CIB financing will enable residents and visitors to have earlier access to more reliable, environmentally conscious and cost-effective service. Ehren Cory, CEO, Canada Infrastructure Bank This investment is about more than replacing aging vessels - it's about ensuring that our coastal ferry system will have the capacity to meet the needs of the people, goods, and communities that depend on it. We believe that this partnership with the CIB will make a big impact in avoiding additional pressures on fare increases for our customers compared with borrowing from private markets. If we leverage the full loan amount, over the term, we expect to save approximately $650m in debt interest charges. It's a smart, long-term partnership that advances our operational, environmental, and financial goals. Nicolas Jimenez, President and CEO, BC Ferries FORWARD LOOKING STATEMENTS This press release contains certain "forward-looking statements." These statements relate to BC Ferries expectations regarding future events or future performance including without limitation expectations regarding growth in demand for ferry services, future fare increases, ability to meet conditions to future draws under the financing, interest savings under CIB loan versus private market rates, ship reliability and capacity, capability of vessels to run efficiently on alternative fuels or electricity, vessel GHG emission reductions targets, ability of ship design to meet desired outcomes, financial and operational risks, and industry and financial markets performance and trends. They reflect management's current internal projections, expectations and beliefs, and are based on information currently available to management. Some of the market conditions and factors that have been considered in formulating the assumptions upon which forward-looking statements are based include population and demand growth estimates, shipbuilding demand and cost projections, past performance of ship builder and ship designer, traffic trends, inflation, interest rates, fuel costs, construction costs and timelines, our expected future financial condition (including expected sources of future revenues), the state of the economy, fluctuating financial markets and impacts of tariffs, international sanctions and other applicable laws. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. Although BC Ferries believes that the forward-looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and British Columbia Ferry Services Inc. assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by applicable law.
Toronto Star
18-06-2025
- Business
- Toronto Star
Eby says Ferries' deal with Chinese shipyard not ‘preferred' but won't interfere
VICTORIA - British Columbia Premier David Eby said he shares the concerns of unions that have criticized the BC Ferries' decision to build four large ships in China. The premier said Tuesday he doesn't believe the decision will alienate the NDP from the unions — a key component of his government's support. 'We work very closely with the labour movement to create good, high-quality, family supporting jobs here in British Columbia, and we share the concerns, frankly, of labour leaders who have expressed that they are dismayed, to say the least, that ferries are not getting built, at least in Canada, if not in British Columbia.' ARTICLE CONTINUES BELOW Eby said he will not interfere with the company's decision to contract a Chinese shipyard owned by the Communist government to build the 'urgently needed' vessels, despite the deal not being his 'preferred outcome.' Cancelling the contract at this stage would come with several costs, the premier said. 'The decision to reopen, revisit, a five-year-procurement process … re-award contracts is not just a billion-dollar decision,' he said. 'It's well in excess of that, when you are retendering again in an inflationary environment, in addition to the time it would take.' The decision by BC Ferries, the company that operates independently of the provincial government but is wholly owned by it, has drawn widespread criticism from groups including the BC Federation of Labour. It has called the contract a 'colossal mistake' and a 'short-sighted decision' that will send hundreds of millions of dollars out of province and into the pockets of a 'brutal authoritarian regime.' BC Building Trades said the agreement 'will forever be a stain' on BC Ferries, while the BC Ferry & Marine Workers' Union has called on BC Ferries and the provincial government to 'reconsider' the decision and support domestic industry. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'If buying local matters, it should matter for ferries too,' the ferry workers union said in a statement. The anger from the unions have raised questions about the long-term relationship between the NDP and unions, but Geoff Meggs, a former chief of staff to the late John Horgan, said does not foresee any long-term damage. 'I think there's a greater risk of alienating union support in the new bargaining process with the public sector unions and how the budget plays out in terms of job protection and service protection,' Meggs said. 'This is more of a blow to morale for parts of the union movement.' Meggs said he understands why the unions successfully sponsored a non-binding resolution at the B.C. New Democrats provincial council last Saturday questioning the decision. 'The shipyard workers in B.C. have been campaigning for decades to increase the capacity of the yards here,' Meggs said. Meggs said that his former boss would have been 'very angry and frustrated' if BC Ferries had made the decision under his watch. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Ferry workers' president Eric McNeely acknowledged that BC Ferries is an independent company, but he called for a review of its governance to ensure better oversight, public input and transparency when it comes to awarding large contracts such as this one. 'I think there should be controls in place and those controls should be tested occasionally to ensure that they still meet the public's interest on massive infrastructure projects,' he said. McNeely also questioned Eby's argument that cancelling the contract would come with costs. It's 'hard to have a really good response when British Columbians don't know what the contract looks like,' he said. McNeely acknowledged that China is a trading partner and noted that his wife and daughter purchased iPhones made in China. 'But I didn't use taxpayers money to buy those iPhones.' Eby said it was 'not ideal' that the ferry contract went to China, when asked whether the deal was not giving China the capacity to expand its military. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'But reopening would mean a delay in delivering ferries for British Columbians, who are desperate for them,' Eby said. Eby noted no Canadian company bid for the contract, and B.C. shipyards currently lack the necessary capacity — highlighting the hollowing out of the provincial shipbuilding industry. But Eby, who was speaking for the first time after returning from his trade mission to Asia, said the province will be working with the federal government to ensure that the next major vessels for BC Ferries will be built in the province — or at the very least in Canada. 'But it's equally vital to me, that when there is no Canadian company willing to bid on a contract, that we don't leave families sitting on the tarmac, waiting for a ferry because the propeller fell off, because it's 50 years old,' he said. This report by The Canadian Press was first published June 17, 2025.
Hamilton Spectator
18-06-2025
- Business
- Hamilton Spectator
Eby says Ferries' deal with Chinese shipyard not ‘preferred' but won't interfere
VICTORIA - British Columbia Premier David Eby said he shares the concerns of unions that have criticized the BC Ferries' decision to build four large ships in China. The premier said Tuesday he doesn't believe the decision will alienate the NDP from the unions — a key component of his government's support. 'We work very closely with the labour movement to create good, high-quality, family supporting jobs here in British Columbia, and we share the concerns, frankly, of labour leaders who have expressed that they are dismayed, to say the least, that ferries are not getting built, at least in Canada, if not in British Columbia.' Eby said he will not interfere with the company's decision to contract a Chinese shipyard owned by the Communist government to build the 'urgently needed' vessels, despite the deal not being his 'preferred outcome.' Cancelling the contract at this stage would come with several costs, the premier said. 'The decision to reopen, revisit, a five-year-procurement process … re-award contracts is not just a billion-dollar decision,' he said. 'It's well in excess of that, when you are retendering again in an inflationary environment, in addition to the time it would take.' The decision by BC Ferries, the company that operates independently of the provincial government but is wholly owned by it, has drawn widespread criticism from groups including the BC Federation of Labour. It has called the contract a 'colossal mistake' and a 'short-sighted decision' that will send hundreds of millions of dollars out of province and into the pockets of a 'brutal authoritarian regime.' BC Building Trades said the agreement 'will forever be a stain' on BC Ferries, while the BC Ferry & Marine Workers' Union has called on BC Ferries and the provincial government to 'reconsider' the decision and support domestic industry. 'If buying local matters, it should matter for ferries too,' the ferry workers union said in a statement. The anger from the unions have raised questions about the long-term relationship between the NDP and unions, but Geoff Meggs, a former chief of staff to the late John Horgan, said does not foresee any long-term damage. 'I think there's a greater risk of alienating union support in the new bargaining process with the public sector unions and how the budget plays out in terms of job protection and service protection,' Meggs said. 'This is more of a blow to morale for parts of the union movement.' Meggs said he understands why the unions successfully sponsored a non-binding resolution at the B.C. New Democrats provincial council last Saturday questioning the decision. 'The shipyard workers in B.C. have been campaigning for decades to increase the capacity of the yards here,' Meggs said. Meggs said that his former boss would have been 'very angry and frustrated' if BC Ferries had made the decision under his watch. Ferry workers' president Eric McNeely acknowledged that BC Ferries is an independent company, but he called for a review of its governance to ensure better oversight, public input and transparency when it comes to awarding large contracts such as this one. 'I think there should be controls in place and those controls should be tested occasionally to ensure that they still meet the public's interest on massive infrastructure projects,' he said. McNeely also questioned Eby's argument that cancelling the contract would come with costs. It's 'hard to have a really good response when British Columbians don't know what the contract looks like,' he said. McNeely acknowledged that China is a trading partner and noted that his wife and daughter purchased iPhones made in China. 'But I didn't use taxpayers money to buy those iPhones.' Eby said it was 'not ideal' that the ferry contract went to China, when asked whether the deal was not giving China the capacity to expand its military. 'But reopening would mean a delay in delivering ferries for British Columbians, who are desperate for them,' Eby said. Eby noted no Canadian company bid for the contract, and B.C. shipyards currently lack the necessary capacity — highlighting the hollowing out of the provincial shipbuilding industry. But Eby, who was speaking for the first time after returning from his trade mission to Asia, said the province will be working with the federal government to ensure that the next major vessels for BC Ferries will be built in the province — or at the very least in Canada. 'But it's equally vital to me, that when there is no Canadian company willing to bid on a contract, that we don't leave families sitting on the tarmac, waiting for a ferry because the propeller fell off, because it's 50 years old,' he said. This report by The Canadian Press was first published June 17, 2025. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Hamilton Spectator
17-06-2025
- Business
- Hamilton Spectator
Premier Eby says deal to hire Chinese shipyard not 'preferred' but will not interfere
VICTORIA - B.C. Premier David Eby says he shares the concerns of union leaders who have criticized BC Ferries' decision to build four large ferries in China. But Eby says he will not interfere with the company's decision to contract a Chinese shipyard owned by the Communist government to build four new ferries, calling the vessels 'urgently needed' despite the deal not being his 'preferred outcome.' The decision by BC Ferries, a company that operates independently of the provincial government but is wholly owned by it, has drawn widespread criticism from groups including the BC Federation of Labour. It has called BC Ferries' decision a 'colossal mistake' and a 'short-sighted decision' that will send hundreds of millions of dollars out of province and into the pockets of a 'brutal authoritarian regime.' Eby says no Canadian company bid for the contract, adding that B.C. shipyards currently lack the necessary capacity — highlighting the hollowing out of the provincial shipbuilding industry. But Eby, who was speaking for the first time after returning from his trade mission to Asia, says B.C. will be working with the federal government to ensure that the next major vessels for BC Ferries will be built in the province — or at the very least in Canada. This report by The Canadian Press was first published June 17, 2025. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
