Latest news with #NicolasJimenez
Yahoo
6 days ago
- Business
- Yahoo
B.C. Ferries receives $1B federal bank loan for Chinese-made ships
B.C. Ferries has secured a $1 billion loan by a federal Crown corporation to help obtain four Chinese-made ships, a purchase that federal Transport Minister Chrystia Freeland recently said should not involve federal funds. Freeland expressed dismay about the selection of China Merchants Industry Weihai Shipyards in a June 16 letter to B.C. Transportation Minister Mike Farnworth, and asked the province to confirm "with utmost certainty that no federal funding will be diverted to support the acquisition" of new ferries from the Chinese state-owned shipyard. On Thursday the Canada Infrastructure Bank confirmed the loan and said the province's new electric ferries "wouldn't likely be purchased" without the financing. B.C. Premier David Eby said B.C. Ferries went through a five-year procurement process and the vessels were "desperately needed." "Anyone who sat on the tarmac waiting for a ferry because the propeller fell off knows that we need to replace these boats and that the need is urgent," Eby said "We have goals around building Canada's economy, absolutely, and part of it means ferries to act for business to access markets, and people are able to get to where they need to get." B.C. Ferries CEO Nicolas Jimenez said in an interview with The Canadian Press that he "was surprised and disappointed" by Freeland's letter, and would "have expected more engagement and dialogue" from Ottawa. "You know we haven't built a ship, a large ship, in this province for 30 years. So there's a lot that has to happen for the domestic capacity to be there," Jimenez told CBC's On the Island on Thursday. "You've got to meet the world where it is, not where you want it to be in this very moment." Loan will also support electrification infrastructure Jeff Groot, executive director of communications for B.C. Ferries, said the company signed the loan with the bank before it was finalized that the Chinese shipyard would win the contract, and before Freeland's letter to Farnworth. The bank said the low-cost loan consists of up to $690 million to buy the vessels and up to $310 million for electrification infrastructure. Groot said "commercial realities" for both B.C. Ferries and the shipyard prevent him from talking about the full size of the agreement, but added that the loan will cover a "substantial" part of the deal. "It is, in our view, a game-changing financial arrangement that has allowed us to make this significant investment in fleet renewal," he said. B.C. Ferries said the vessel portion of the bank's loan will represent a maximum of 42.5 per cent of the total purchase price. That would suggest that if the maximum $690 million is spent on the new ferries, their minimum cost would be about $1.6 billion. But Groot said that was "not representative" of the cost, and there was "flexibility to repurpose" unspent amounts on the vessel side of the loan to cover infrastructure costs. $650 million in savings on interest Jiminez also said it was not possible to "reverse engineer" the cost of the ships from the loan amounts, and the loan is a "deal maker" for B.C. Ferries and its customers. "If we fully exercise the loan, we'd be saving about $650 million in interest charges we would otherwise have to pay if we got these loans at market rates,"Jimenez said Thursday. Eby said the loan brings up the issue of fairness around federal support. He says East Coast ferries get "$300 of federal support for every $1" B.C. Ferries receives per user. The Canada Infrastructure Bank is accountable to Parliament through the federal Minister of Housing, Infrastructure and Communities, former Vancouver mayor Gregor Robertson. Mohammad Hussain, a spokesperson for Robertson's office, said Robertson has asked for a briefing from the bank's CEO "on the kind of considerations this decision raises." Hussain called B.C. Ferries' procurement decision "extremely disappointing." He said the bank supports key infrastructure projects needed in communities. "While our government had no influence or participation in this procurement decision, we will still emphasize once again the importance of supporting domestic industry," he said. B.C. Conservative Harman Bhangu, transportation critic for his party, said in a statement that Freeland needs to "immediately" reconsider the terms of the loan to protect Canadian jobs, businesses and security interests.
CBC
6 days ago
- Business
- CBC
B.C. Ferries criticized for obtaining a $1B federal bank loan to buy Chinese-made ships
B.C. Ferries has secured a $1 billion loan by a federal Crown corporation to help obtain four Chinese-made ships, a purchase that federal Transport Minister Chrystia Freeland recently said should not involve federal funds. Freeland expressed dismay about the selection of China Merchants Industry Weihai Shipyards in a June 16 letter to B.C. Transportation Minister Mike Farnworth, and asked the province to confirm "with utmost certainty that no federal funding will be diverted to support the acquisition" of new ferries from the Chinese state-owned shipyard. On Thursday the Canada Infrastructure Bank confirmed the loan and said the province's new electric ferries "wouldn't likely be purchased" without the financing. B.C. Premier David Eby said B.C. Ferries went through a five-year procurement process and the vessels were "desperately needed." "Anyone who sat on the tarmac waiting for a ferry because the propeller fell off knows that we need to replace these boats and that the need is urgent," Eby said "We have goals around building Canada's economy, absolutely, and part of it means ferries to act for business to access markets, and people are able to get to where they need to get." B.C. Ferries CEO Nicolas Jimenez said in an interview with The Canadian Press that he "was surprised and disappointed" by Freeland's letter, and would "have expected more engagement and dialogue" from Ottawa. "You know we haven't built a ship, a large ship, in this province for 30 years. So there's a lot that has to happen for the domestic capacity to be there," Jimenez told CBC's On the Island on Thursday. "You've got to meet the world where it is, not where you want it to be in this very moment." Loan will also support electrification infrastructure Jeff Groot, executive director of communications for B.C. Ferries, said the company signed the loan with the bank before it was finalized that the Chinese shipyard would win the contract, and before Freeland's letter to Farnworth. The bank said the low-cost loan consists of up to $690 million to buy the vessels and up to $310 million for electrification infrastructure. Groot said "commercial realities" for both B.C. Ferries and the shipyard prevent him from talking about the full size of the agreement, but added that the loan will cover a "substantial" part of the deal. "It is, in our view, a game-changing financial arrangement that has allowed us to make this significant investment in fleet renewal," he said. B.C. Ferries said the vessel portion of the bank's loan will represent a maximum of 42.5 per cent of the total purchase price. That would suggest that if the maximum $690 million is spent on the new ferries, their minimum cost would be about $1.6 billion. But Groot said that was "not representative" of the cost, and there was "flexibility to repurpose" unspent amounts on the vessel side of the loan to cover infrastructure costs. $650 million in savings on interest Jiminez also said it was not possible to "reverse engineer" the cost of the ships from the loan amounts, and the loan is a "deal maker" for B.C. Ferries and its customers. "If we fully exercise the loan, we'd be saving about $650 million in interest charges we would otherwise have to pay if we got these loans at market rates,"Jimenez said Thursday. Eby said the loan brings up the issue of fairness around federal support. He says East Coast ferries get "$300 of federal support for every $1" B.C. Ferries receives per user. The Canada Infrastructure Bank is accountable to Parliament through the federal Minister of Housing, Infrastructure and Communities, former Vancouver mayor Gregor Robertson. Mohammad Hussain, a spokesperson for Robertson's office, said Robertson has asked for a briefing from the bank's CEO "on the kind of considerations this decision raises." Hussain called B.C. Ferries' procurement decision "extremely disappointing." He said the bank supports key infrastructure projects needed in communities. "While our government had no influence or participation in this procurement decision, we will still emphasize once again the importance of supporting domestic industry," he said. B.C. Conservative Harman Bhangu, transportation critic for his party, said in a statement that Freeland needs to "immediately" reconsider the terms of the loan to protect Canadian jobs, businesses and security interests.
CTV News
6 days ago
- Business
- CTV News
Federal bank loaning $1B for BC Ferries to buy Chinese-made ships
The BC Ferries vessel Island Nagalis, an island-class ferry used to service Quadra Island, arrives in Campbell River, B.C., Friday, Oct. 11, 2024. THE CANADIAN PRESS/Darryl Dyck A federal Crown corporation is loaning BC Ferries $1 billion to help buy four Chinese-made ferries, a purchase that federal transport minister Chrystia Freeland recently said was dismaying and should involve no federal funds. Canada Infrastructure Bank confirmed the loan on Thursday, saying the new electric ferries 'wouldn't likely be purchased' without the financing. It says the low-cost loan consists of up to $690 million to buy the vessels and up to $310 million for electrification infrastructure. Freeland wrote to the province on June 16, asking B.C. to confirm 'with utmost certainty' that no federal funds would be 'diverted' to the purchase from China Merchants Industry Weihai Shipyards. Jeff Groot, executive director of communications for BC Ferries, says in an interview that BC Ferries signed the agreement with the bank before Freeland's letter to her provincial counterpart, Mike Farnworth. BC Ferries CEO Nicolas Jimenez says in a news release that the full loan would result in expected savings of about $650 million in interest. --- This report by Wolfgang Depner, The Canadian Press, was first published June 26, 2025.
Yahoo
6 days ago
- Business
- Yahoo
Federal bank loaning $1B for BC Ferries to buy Chinese-made ships
VICTORIA — A federal Crown corporation is loaning BC Ferries $1 billion to help buy four Chinese-made ferries, a purchase that federal transport minister Chrystia Freeland recently said was dismaying and should involve no federal funds. Canada Infrastructure Bank confirmed the loan on Thursday, saying the new electric ferries "wouldn't likely be purchased" without the financing. It says the low-cost loan consists of up to $690 million to buy the vessels and up to $310 million for electrification infrastructure. Freeland wrote to the province on June 16, asking B.C. to confirm "with utmost certainty" that no federal funds would be "diverted" to the purchase from China Merchants Industry Weihai Shipyards. Jeff Groot, executive director of communications for BC Ferries, says in an interview that BC Ferries signed the agreement with the bank before Freeland's letter to her provincial counterpart, Mike Farnworth. BC Ferries CEO Nicolas Jimenez says in a news release that the full loan would result in expected savings of about $650 million in interest. This report by The Canadian Press was first published June 26, 2025. Wolfgang Depner, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
11-06-2025
- Business
- CBC
Minister concerned over B.C. Ferries' construction deal with Chinese shipyard
British Columbia's transport minister has raised concerns with B.C. Ferries about its decision to have a Chinese shipyard build four new ferries for its passenger fleet, amid an ongoing trade conflict between Canada and China. The winning bidder on the contract announced Tuesday is Chinese state-owned China Merchants Industry Weihai Shipyards. Mike Farnworth said in a statement he was worried about procuring services from "any country that is actively harming Canada's economy" with tariffs and protectionism. "B.C. Ferries is an independent company responsible for its own operational decisions," Farnworth said. "While B.C. Ferries has made its decision to purchase new vessels offshore, I am disappointed more involvement from Canadian shipyards was not part of the contract." Farnworth's remarks came hours after the announcement by B.C. Ferries CEO Nicolas Jimenez that the Chinese shipyard had been chosen to build its vessels, with the first expected to come into service in 2029 and the others following in six-month intervals. Jimenez said he wasn't worried about geopolitical tensions between Canada and China, adding his primary focus was getting the province a good deal. "Customers expect us to go source the best possible deal, [the] highest quality, a yard that provides safety, a yard that provides the highest in standards when it comes to oversight [and] labour, and to get the best cost," he said at a news conference Tuesday. "When it comes to things like trade policy, industrial policy, geopolitics, I think we would really defer that to the federal and provincial governments and expect them to manage and work those issues." He said in a news release that the shipyard was "the clear choice based on the overall strength of its bid." It said Weihai Shipyards has built vessels for Canada's Marine Atlantic ferry company and other operators such as Corsica Linea and Brittany Ferries of France. Canada and China are engaged in a trade dispute, with Beijing imposing retaliatory tariffs on Canadian canola oil and meal, peas and seafood after Ottawa slapped levies on Chinese-made electric vehicles, steel and aluminum. Jimenez said Tuesday that there are currently no tariffs associated with the import of vessels of this type into Canada and tariff disputes didn't factor into the decision. B.C. Ferries is not releasing the value of the contract other than Jimenez saying it fits within the budget approved by the B.C. Ferries Commissioner earlier this year. He said releasing details of the deal before the project is complete could put future procurements at risk. "To protect B.C. Ferries and our customers, we've structured the contract in a way that reduces our risk while increasing shipyard accountability. Most of the payment is tied to delivery, and that means the shipyard doesn't get fully paid until the vessels are delivered and meet the rigorous standards that we've laid out in the contract," he said. "There are also measures like refund guarantees and fixed price terms that will further protect B.C. Ferries and our customers." B.C. Ferries' head of fleet renewal, Ed Hooper, said no Canadian companies bid on the ships that will carry about 52 per cent more passengers and 24 per cent more vehicles than the ferries they are replacing. WATCH | 4 new ferries coming to B.C.: B.C. Ferries to build 4 new vessels to replace aging ships in fleet 2 months ago Duration 9:51 B.C. Ferries is about to get four new vessels to replace its aging fleet, set to start sailing in 2029. The decision represents the single largest capital expenditure in B.C. Ferries' history. CEO Nicolas Jimenez and B.C. Ferry and Marine Workers Union president Eric McNeely share what this means for the future of ferry travel in B.C. Jimenez said 60 per cent of the world's ships are built in China, and B.C. Ferries did due diligence to make sure it understood the "technical and delivery and country risks associated with making this decision." B.C. Ferries said it will have its own team of experts on-site at the shipyard throughout construction to provide oversight and quality assurance. In a statement, the Opposition B.C. Conservatives accused Premier David Eby of "abandoning Canadian workers" by awarding a "multibillion-dollar" contract to a Chinese state-owned enterprise. The oldest ferry being replaced is the Queen of New Westminster, built in 1964, while the Queen of Cowichan, Queen of Alberni and Queen of Coquitlam all turn 50 next year. B.C. Ferries had hoped to buy five new vessels and bring its fleet size from 10 to 11 but earlier this year the provincial regulator rejected the pitch, saying a fifth ferry "is not in the public interest" as it is "not essential for safe and reliable service and is not fiscally prudent." The parent company of China Merchants Industry Weihai Shipyards is China Merchants Industry Holdings. The conglomerate's website describes it as a "centrally administrated state-owned" enterprise with more than a 100 years of history, making it one of the oldest "Chinese-funded enterprises" in existence.
