BC Ferries has issued an in-depth statement following calls for the cancellation of its recent order of four new diesel-battery hybrid propulsion vessels from China Merchants Industry Weihai Shipyards (CMI Weihai).
The order, which was announced in June, was met with much derision from Canadian politicians and shipmakers, who expressed disappointment at BC’s decision to have its new vessels manufactured outside of the country.
However, BC Ferries has stated that it had received ‘no Canadian bids’ for its tender, with European construction quoted at costing an additional 1.2 billion CAD.
The company’s independent regulator, BC Ferry Commission, approved the procurement of four NMVs and rejected BC Ferry’s proposal to build a fifth vessel in March.
The global procurement process for the new vessels also included a Public Request for Proposals (RFP), with BC Ferries choosing Chinese shipyard CMI Weihai due to its technical capabilities, high-quality and safety standards.
In a statement released by BC Ferries on 1 August; the company highlighted the urgent need for a new set of vessels, with each of its major route sailings running at 92% capacity on average.
BC Ferries also stated that of its 25 routes, only one is capable of covering its own costs without government subsidy and one is capable of covering its own costs.
Travel demand is also cited – with current projections putting an upcoming rise in demand at 15%, which BC Ferries states will outpace its capacity even with the procurement of the new vessels.
In an address to the House of Commons Standing Committee on Transport, Infrastructure and Communities, BC Ferries President and CEO Nicolas Jimenez said:For the last 60 years, BC Ferries has been an essential public service for British Columbians. Last year alone, we transported almost 23 million customers – our third record-setting year in a row. We are a private company that operates provincially under independent regulatory oversight, with a legislated mandate to serve the public interest.
We are a foundational part of the provincial and national supply chain, a critical part of the tourism industry, and BC’s marine highway, moving about $8 billion in goods annually.
Our customers and communities need safe, reliable and affordable service, and my role as CEO is to deliver on that promise.
Elsewhere, the company has claimed that a number of its current fleet is becoming unfit for purpose, with recent developments including the loss of a propeller from its 61-year-old Queen of New Westminster which resulted in 200 days of repairs and cost the company roughly 15 million CAD.
BC Ferries has also addressed a loan provided by the Canada Infrastructure Bank of up to 690 million CAD for vessels and a further 310 million USD for the electrification of terminals.
The company has reiterated that the loan has been received solely by BC Ferries itself, not China, and that it will be repaid with interest by the company.
The full statement from BC Ferries can be found on its website, here.
