B.C. Ferries has drawn the ire of federal Transport Minister Chrystia Freeland for its decision to contract a Chinese state-owned shipyard to build four new vessels for its passenger fleet.
Freeland also expressed concerns about security risks related to the contract.
In a letter to B.C.’s Transportation Minister Mike Farnworth released Friday afternoon, Freeland expressed her “great consternation and disappointment” with the ferry operator.
“I am dismayed that B.C. Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context,” Freeland wrote.
Earlier this month, B.C. Ferries said the winning bidder on the contract is China Merchants Industry Weihai Shipyards. No Canadian companies bid on the ships, according to B.C. Ferries.
But Freeland said, given the value of the contract and the amount of taxpayer money provided to B.C. Ferries’ operations, she would have expected Canadian companies to be involved in the bid process.
“I am surprised that B.C. Ferries does not appear to have been mandated to require an appropriate level of Canadian content in the procurement or the involvement of the Canadian marine industry,” she wrote.
Freeland said China has imposed “unjustified tariffs” on Canadian goods, including 100 per cent tariffs on canola oil, meal and pea imports and a 25 per cent duty on Canadian aquatic products and pork.
She asked her provincial counterpart to share what it will do to address potential threats to security, including cybersecurity, and determine how B.C. Ferries will lessen “the risks that vessel maintenance and spare parts may pose.”
“I would like your assurance that B.C. Ferries conducted a robust risk assessment, and I expect them to engage with the relevant provincial and federal security agencies and departments to mitigate any security risk.”
B.C. Ferries finds itself in some rough waters after it announced its plan for building new ships.
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Freeland said the federal government has a long record of providing financial support to B.C. Ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement.
The letter went on to say the Canada Infrastructure Bank is providing the ferry operator with a $75-million loan to finance the purchase of four zero-emission ferries and install charging infrastructure
Freeland asked Farnworth to confirm “with utmost certainty” that no federal funding would be used to acquire the new ferries.
In an emailed statement late Friday, Farnworth said he has spoken to Freeland about the need to bolster the province’s shipbuilding sector.
“B.C. has the skilled labour — a partnership with the federal government, provincial governments, and industry is essential for Canadian shipyards to expand physical capacity to build commercial vessels on both coasts,” he said.
The B.C. Ministry of Transportation said it is reviewing Freeland’s letter.
B.C. Ferries’ response
Jeff Groot, executive director of communications with B.C. Ferries, said Weihai Shipyards was selected following a rigorous and transparent procurement process.
“It was the strongest bid by a significant margin,” he said in an emailed statement.
Groot said Canadian companies have acquired around 100 vessels built at Chinese shipyards over the last decade.
“Globally, only a few shipyards have the capacity to deliver complex passenger ferries on the timelines and budgets required.”
Groot said B.C. Ferries has been working with Transport Canada since before the contract was signed, and with Public Safety Canada on safety and security issues.
“Also, sensitive systems will be sourced separately and independently certified before the vessels enter service. B.C. Ferries intends that all of our IT networks will be procured from within Canada and installed on the ship by B.C. Ferries’ own personnel,” Groot said.
He added a full-time B.C. Ferries oversight team will be on site at the shipyard.
