BC Ferries will continue constructing new vessels in China, a decision that Eby finds acceptable, yet not ideal.
Fresh Spin on BC Ferries' Decision to Hire Chinese Shipyard
BC Ferries' decision to partner with China Merchants Industry Weihai Shipyard to construct four new vessels has caused a stir, with critics questioning the choice. Premier David Eby, however, maintains that the province won't meddle with this choice, emphasizing the dire need to replace ageing vessels prone to frequent breakdowns.
In a candid press conference after a recent trade mission in Asia, Eby acknowledged his displeasure with the outcome of BC Ferries' five-year procurement process. Yet, he underscored the pressing need for these new vessels, pointing out that delaying the project would result in exorbitant costs and families stranded waiting for a functional ferry.
Interestingly, no Canadian shipyards tendered bids for the project. Seaspan, BC's primary shipbuilder, is currently engrossed in military projects for the federal government. Last September, the company hinted that even when it frees up capacity, it might not be able to compete with cheaper labor markets and lenient safety standards overseas.
The exact financial terms of the contract with CMI Weihai have been kept under wraps to safeguard future procurements. However, it includes payment linked to delivery, refund guarantees, and a fixed price, designed to mitigate risks despite global tensions.
When the deal was unveiled, BC Ferries CEO Nicolas Jimenez highlighted that CMI Weihai was the frontrunner based on the comprehensive quality of its bid and the shipyard's experience constructing ferries for leading western corporations, such as Canada's Marine Atlantic.
This move has courted controversy in the "Buy BC" and "build, baby, build" era, not to mention the ongoing trade spat between China and Canada. Eby acknowledged the less-than-ideal circumstances but stressed the urgency to deliver ferries to British Columbians, who are eagerly awaiting them.
The premier expressed confidence that collaboration with the federal government could pave the way for the next round of BC Ferries vessels to be built domestically, or at least in Canada, emphasizing the government's commitment to boosting local employment. Nevertheless, Eby clarified that if no Canadian companies were willing to bid, it wouldn't be wise to leave families in the lurch.
In essence, the choice to hire CMI Weihai was predicated on the urgency to replace ageing ferries and the absence of Canadian shipyards in the international bid process. The selection was primarily based on factors like risk, quality, environmental standards, cost, and timelines, with the deal offering protections such as payment tied to delivery and refund guarantees.
- However, the premier has emphasized the government's commitment to boosting local employment, suggesting a possibility for future BC Ferries vessels to be built in Canada.
- In a press conference, Eby pointed out that delaying the project would result in exorbitant costs and families stranded waiting for a functional ferry, hinting at the urgency behind the decision.
- The shipyard, CMI Weihai, has constructed ferries for leading western corporations, including Canada's Marine Atlantic, demonstrating its experience in the industry.
