VICTORIA – Canada's Minister of Transport, Chrystia Freeland, has expressed her dismay over BC Ferries' decision to contract a Chinese state-owned shipyard, specifically China Merchants Industry Weihai Shipyards, to build four new vessels amidst a challenging geopolitical climate. Freeland's concerns stem from what she describes as "unjustified" tariffs imposed on Canada, raising questions about the implications of such international contracts.
In a formal communication to British Columbia’s Minister of Public Safety and Solicitor General, Mike Farnworth, Freeland articulated her expectations for BC Ferries to inform her of the measures it plans to implement to mitigate any potential security risks associated with the project. This includes addressing cybersecurity concerns that may arise from using a foreign shipyard.
BC Ferries announced the contract earlier this month, following an extensive five-year procurement process that, notably, did not include any Canadian bids. Freeland expressed surprise that BC Ferries does not have a mandate ensuring a "suitable level" of Canadian procurement, emphasizing the significant value of the contract, although the specific dollar amount has not been disclosed.
In response, Farnworth's ministry stated it is reviewing Freeland's letter and confirmed that Farnworth has engaged in discussions with her about strengthening British Columbia's shipbuilding industry. BC Ferries defended its decision, claiming that the Chinese bid emerged as the most competitive by a "significant margin." They also assured that security measures are a priority, stating all sensitive systems related to the vessels would be acquired separately and will undergo independent certification before entering service.
Premier David Eby echoed Farnworth’s sentiments, committing to collaborate with the federal government to enhance local shipbuilding capabilities for future projects. However, Eby also remarked that the provincial government would not interfere with BC Ferries' decision-making process, highlighting the operational independence of BC Ferries and the importance of meeting the needs of coastal communities.
BC Ferries operates as an independent entity, with the province retaining sole ownership. Freeland emphasized the necessity for "assurances" that BC Ferries will conduct a rigorous risk assessment and engage with relevant federal and provincial security agencies. Furthermore, her letter sought confirmation that no federal funding would be redirected to support the construction of these new ferries.
Freeland pointed out the federal government's history of financial support for BC Ferries, which includes a subsidy of $37.8 million for the year 2025-26, stemming from an agreement established in 1977. Additional federal support has included $308 million allocated to cover operational losses related to the COVID-19 pandemic and to mitigate average fare increases. The Canada Infrastructure Bank has also provided BC Ferries with a loan of $75 million to assist in acquiring four net-zero emission ferries and the associated infrastructure development.
The contents of Freeland's letter became public earlier this week during the Question Period in the House of Commons, where she faced inquiries from British Columbia MP Dan Albas regarding the ferries' procurement. During this debate, Freeland expressed her alignment with the concerns and frustrations voiced by other members of parliament about the purchase of ferries from China, underscoring that federal support for BC Ferries, designated specifically for operational costs, must not be utilized for any other purpose.
