Wednesday June 11, 2025 | OTTAWA, ON [reporting from VICTORIA, BC] Posted at 4:20 pm PT | Updated 4:25 pm PT
Political analysis by Mary P Brooke | Island Social Trends
Today in the House of Commons, Jeff Kibble, MP (Cowichan-Malahat-Langford) asked about the Chinese-contractor aspect of a shipbuilding contract announced by BC Ferries yesterday.
Four new major vessels are to be built by China Merchants Industry Weihai Shipyards (CMI Weihai), with the first ship deliverable by the end of 2028 and the other three at six-month intervals thereafter.
“BC Ferries just announced that they will purchase four new full-sized ferries from a Chinese state-owned company rather than from a proven Canadian shipbuilder such as Seaspan in North Vancouver. If the Liberals are set to hand over $30 million to BC Ferries, while BC Ferries hands over critical jobs, investment and industry to China. Will the Liberals attach a common sense condition of buying Canadian-built ships to BC Ferries in order to receive their $30 million subsidy?,” said Kibble during today’s question period.
The Minister of Transport and Internal Trade, Chrystia Freeland, replied to Kibble’s question with a reference to ‘buy local’ but also with the fail safe of the contract not being a federal one: “I absolutely share his concern when it comes to government procurement at all levels. Now is a time when we need to support Canadian workers and Canadian industries. And we need to work closely with our allies and trade partners. That project is not a federal government project,” said Freeland.
The cost of the shipbuilding contract was not disclosed yesterday during the BC Ferries announcement about the contract.
But the argument was made by BC Ferries CEO Nicholas Jiminez that in the first 10 years more than $230 million will be spent in BC on maintenance, refits and ongoing support. He presented that as positive for the BC jobs and the broader economy (e.g. construction, trades, tourism and other services) that spins beyond the actual BC Ferries service.
What appears to have been BC Ferries’ excitement about choosing a shipbuilder that can deliver a good price, the choice by BC Ferries produces a geopolitical headache for BC and federal governments to contend with.
At the very least this seems a bit short-sighted or even tone-deaf on the part of BC Ferries, not realizing the political tailspin that their choice of supplier would almost certainly cause. BC Ferries CEO Jiminez referred to the contract several times yesterday as solid and low-risk; it would be unfortunate if BC is so firmly locked in that a change of supplier cannot be found if that turns out to the politically necessary.
BC Ferries is dependent on the additional capacity and modern performance of new vessels as part of their plan to deliver more reliable and robust service to passengers and the commercial transport sector.
The contract bears the potential risk of possible insufficient performance or quality standard if the cost of tariffs on steel and aluminum impacts what sounds like a fixed-cost contract.
Awaiting BC government comment:
Island Social Trends has has BC’s Premier and Minister of Transportation and Transit for a comment on the BC Ferries choice of supplier.
===== RELATED:
- Premier Eby to seek federal collaboration for greater Canadian shipbuilding capacity (June 17, 2025)
- East-west difference in federal funding to coastal ferries (June 17, 2025)
- BC Ferries four new major vessels to be constructed in China (June 10, 2025)
- Vancouver-Victoria ferry delays on Mother’s Day (May 11, 2025)
- Four new major BC Ferries vessels to service major routes (March 31, 2025)
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