BC Ferries won't stop building new ships in China despite opposition

Premier David Eby has stated that he won't interfere with BC Ferries' decision to hire a Chinese state-owned shipyard to build four new vessels, despite opposition from critics and unions. Eby acknowledged it's "not ideal" but said the need to replace the 50-year-old ferries is more pressing. No Canadian companies bid on the contract, citing lower wages and safety standards in other countries. The value of the contract has not been disclosed.

Premier David Eby has stated that the provincial government will not interfere with BC Ferries' decision to hire a Chinese state-owned shipyard to build four new vessels, despite mounting opposition from critics and unions. Eby acknowledged that the decision is "not ideal" but emphasized that the need to replace the 50-year-old ferries is more pressing. The contract, awarded to China Merchants Industry Weihai Shipyards (CMI), has drawn significant criticism due to concerns over wages, safety standards, and national security [2].

The value of the contract has not been disclosed, but Eby noted that reopening the bidding process would result in significant increased costs and delays in improving transportation services linking Metro Vancouver with Vancouver Island and the Sunshine Coast. The new ships are intended to provide a major increase in capacity and improve reliability by replacing aging vessels [2].

The decision to award the contract to CMI has been criticized for not receiving any bids from Canadian shipyards, which has been a longstanding trend for nearly all of BC Ferries' procurements over the past 20 years. European shipyards have won most of BC Ferries' shipbuilding contracts in recent decades, with Canadian shipyards opting out due to perceived lower price competitiveness [2].

Eby acknowledged that the focus should now be on boosting B.C.'s shipbuilding industry to ensure that future additional orders of new major vessels can be built domestically. He plans to reach out to Prime Minister Mark Carney to establish a potential shipbuilding strategy. The Premier also noted that BC Ferries' previous plan to build seven Island Class battery-electric vessels in Canada was unsuccessful due to funding constraints [2].

The contract with CMI is part of BC Ferries' ongoing effort to replace aging ships, a project that has faced years of delays due to the pandemic and soaring global shipbuilding costs. The project was initially planned to have the first new replacement of a C-class vessel by 2024 but has since been delayed [2].

References:
[1] https://pulse.mk.co.kr/news/english/11343593
[2] https://dailyhive.com/vancouver/bc-ferries-new-major-vessels-david-eby-china-shipyard-contract