BC Ferries, which is fully owned by the province of British Columbia, is putting out some thrilling news. Observantly, they plan to order four large vessels at CMIW (China Merchants Industry Weihai Shipyards). This unusual move has received a large amount of attention and concern even from federal officials. The procurement process took five years and strictly barred any bidders from Canadian firms.
Even federal Transport Minister Chrystia Freeland was reportedly “apoplectic” about the deal. Her reason for concern was expressed in a letter she sent to British Columbia’s Minister of Transportation, Mike Farnworth. Freeland underscored the significance of security in her letter. She called on BC Ferries to proactively inform her of the steps it will take to mitigate any risks that may arise from this purchase.
“I share the concern and anger of other members of this House about the purchase of Chinese ferries,” – Chrystia Freeland
BC Ferries goes though a rigorous enterprise risk assessment process. Additionally, they are working diligently with federal and provincial security agencies to provide a consistently safe environment. The company takes a layered approach to security by procuring sensitive systems through different channels. It intends to have these systems independently certified prior to their being placed in service.
Per Freeland’s concern, this rings particularly hollow given the $386 million bailout that BC Ferries has already received from Ottawa. The capital relief features a $37.8 million operating subsidy for fiscal year 2025-26. This funding is guaranteed by a unique deal struck way back in 1977. As one example, BC Ferries was provided with $308 million to offset lost operating revenues due to the COVID-19 pandemic. This funding will help prevent affected operators from raising fares on their passengers.
Fortunately, BC Premier David Eby has recognized the damage these policies have done and growing public concerns. He will not micromanage operational decision-making at BC Ferries, but he is dedicated to working with the federal government to ensure local capacities are best positioned for future vessel procurements. In his response, Eby recognized the demands on coastal communities but maintained the operational independence of BC Ferries.
“I have written to the Province of B.C. to make it clear that the federal government’s support for BC Ferries, which is explicitly for operating support, must not be used for anything other than the operation of ferries.” – Chrystia Freeland
BC Ferries dug in its heels and refused to budge. They underscored that the Chinese bid for the vessels was far superior to all other bidders. The company is committed to the operational excellence required to service the coastal communities of British Columbia.
