CP NewsAlert: BC Ferries picks Chinese shipyard to build four new boats
BC Ferries has chosen a Chinese shipyard to build four new ferries for its passenger fleet, with the first arriving by 2029.
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CEO Nicolas Jimenez says BC Ferries won't release the cost of the contract with China Merchants Industry Weihai Shipyards, and adds he's not worried about becoming a geopolitical bargaining chip in tensions between Canada and China.
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Vancouver Sun
5 hours ago
- Vancouver Sun
Transportation minister says building in Europe would have cost B.C. Ferries an additional $1.2 billion
B.C.'s transportation minister now acknowledges that while he has concerns about B.C. Ferries' decision to award a contract to a Chinese state-owned company, the corporation had few other options. Building four new vessels in Europe would have cost B.C. Ferries a lot more money, Farnworth told Postmedia News. The corporation has warned additional costs could lead to further fare increases for taxpayers. 'I know some people have suggested going to Europe. But the reality is, I learned from B.C. Ferries, to go to Europe, to build the ships, it would be an additional $1.2 billion.' Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Farnworth said he was informed of the ferry service's decision to award the contract to Weihai shipyards about a month before it was made public this week, at which point he raised concerns about doing business with a country engaged in a trade war with Canada. 'I raised my concerns. One … the fact that there's no Canadian content in terms of construction. The tariffs, the trade disputes that are currently ongoing between our two countries is also, quite frankly, very concerning, and something that I think is going to be a real problem,' he said. However, part of the problem, Farnworth said, is that there were no Canadian bids for the contract, which seeks to have four vessels delivered by 2031 in order to replace B.C. Ferries' oldest ships. B.C. Ferries has refused to release the value of the contract with Weihai shipyards. North Vancouver-based shipbuilder Seaspan said in September that 'Canadian shipyards and their supply chains cannot compete with low-wage countries that have lower employment standards, lower environmental standards and lower safety standards.' It had urged the provincial government to step in to provide tax breaks and forgivable loans and grants to allow local companies to compete for bids. Farnworth said that although Seaspan has indicated it's now busy with federal contracts, he wants to develop a plan to ensure future contracts are kept in B.C. 'I know B.C. Ferries will be wanting to build more ships in the future, and I want to ensure that as much of that as possible is done here in B.C. and Canada,' he said. 'I've asked for work within my ministry in terms of what is required to ensure that happens.' The Shipyard General Workers Federation said in a statement Thursday that while Seaspan may not be in a position to bid, 'many smaller shipyards in Canada have expressed their willingness and capability to collaborate as a consortium to keep this work within our borders.' It urged the provincial and federal governments to intervene so that the project can be returned to Canada. Asked whether he planned to do so, Farnworth sidestepped the question and simply cited the additional cost that would come with moving the contract. A China expert at the Center for Strategic and International Studies in Washington, D.C., told Postmedia earlier this week that such contracts could help China's military aspirations and preparations for a possible invasion of Taiwan. But Farnworth said he wasn't concerned. 'Shipyards all over the world are used for building commercial vessels and for military vessels. Our shipyards build military vessels as well,' he said. 'That is why I think it is important that we look at how we can ensure that we can build ships here in our own country, in the future.'
The Province
9 hours ago
- The Province
B.C. Ferries contract plays to China's military aspirations, expert warns
B.C. Ferries has hired Weihai shipyards to build roll-on, roll-off ships. An expert says China's interest in such ferries is military An aerial view of the China Merchants Industry Weihai Shipyards in Weihai, Shandong. Photo by China Merchants Industry An expert in Chinese state influence operations is warning that B.C. Ferries' contract with a Chinese shipyard to build four large ferries might help China prepare to invade Taiwan. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Brian Hart, deputy director and fellow of the China power project at the Center for Strategic and International Studies in Washington D.C., says China wanted to become an expert in roll-on, roll-off passenger ferries because they can be used as troop transports in any military action. 'They've started to adapt some of those roll-on, roll-off passenger ferries to be able to support military operations, including amphibious landing operations,' he said. China, which insists Taiwan is an integral part of China, has long been feared in the West to be preparing to seize the island by military force. However, Hart said China Merchants Industry Weihai Shipyard, while state controlled, is not owned by the China State Shipbuilding Corporation, which has been tasked with building China's navy, making it 'less problematic' than other shipyards in China. This advertisement has not loaded yet, but your article continues below. He is also glad to see that B.C. Ferries has taken the step to install all of its IT and vessel software in Canada after the ships are built, because not doing so could have left the corporation open to cybersecurity risks. 'I think that's a good best practice if a company is still buying from a Chinese shipyard,' said Hart. 'It helps, not with just cybersecurity, but also potentially with technological transfer to to China, which is an issue in itself.' Benjamin Fung, a professor in McGill's school of information studies, said that allowing China access to the internal systems of the ferries could have given the country the ability to plant a Trojan horse that could be used to stop them from working in a moment of geopolitical crisis. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. He said this has been evidenced in Russia's attack on Ukraine where Vladimir Putin's army used cyberattacks in the lead-up to the invasion. 'Given the geopolitical tension, it is difficult to guarantee the security of the ferries during 'critical moments', such as military action in the Taiwan Strait,' said Fung in an email to Postmedia. 'China may not have much interest in the confidentiality of the ferries, but it is possible to make the ferries stop functioning.' Part of the problem for companies like B.C. Ferries is that China has come to so thoroughly dominate the global shipbuilding industry, building roughly 60 per cent of all ships worldwide, that the ferry company didn't have much choice when going through the procurement process. This advertisement has not loaded yet, but your article continues below. Although B.C. Ferries has used shipyards in countries like Poland, Romania and Germany in the past, this isn't always possible, according to Hart. 'I think it's a challenge where China's rise and dominance has undercut other players in the industry, like Japan and Korea. It's also undercut U.S. and other countries ability to kind of maintain their own domestic shipping industry.' The head of the union representing B.C. Ferries workers is pushing both the provincial and federal governments to spend more on domestic shipping so that issues like this don't arise in the future. Eric McNeely, president of the B.C. Ferry and Marine Workers' Union, said it isn't that companies like Seaspan in B.C. don't have the capacity, but that they can't compete with Chinese firms that have massive state subsidies and cheap labour. This advertisement has not loaded yet, but your article continues below. 'Society has become a little accustomed to trying to seek out the most cost-effective method, right off the kick and not really looking at what that means long-term,' he said. 'That's okay, maybe for an iPhone that you have for two years. But it's a little different when you're looking at ships that are going to be in service, carrying humans for 40, 50 or 60 years.' McNeely acknowledged that building the ships at home would likely take longer and cost more, but said it could benefit B.C. by creating thousands of jobs and developing a world class shipbuilding industry in a country with one of the world's largest coastlines. He said he worries about the safety of his members who will be sent to China to oversee the project given the arrests of Canadians Michael Kovrig and Michael Spavor in 2018 after Canada detained Huawei executive Meng Wanzhou. This advertisement has not loaded yet, but your article continues below. Neither B.C. Ferries CEO Nicolas Jimenez or board chair Joy MacPhail were available for comment Thursday. Postmedia asked the corporation whether it knew the reasoning for why China has come to specialize in roll-on, roll-off ferries and what the added time and cost would be if it were to build the ferries domestically. The corporation was also asked who it had consulted in the provincial and federal governments about the contract offer to Weihai and whether the province could force B.C. Ferries to retract the contract if it wanted to. It didn't answer the questions, but said its contract is 'consistent with established practice across the Canadian marine sector' noting that over 100 ships have been constructed in China over the past decade for companies such as Seaspan, Canada Steamship Lines and federal ferry corporation Marine Atlantic. This advertisement has not loaded yet, but your article continues below. B.C. Transportation Minister Mike Farnworth has been critical of the deal but there is no indication he plans to intervene to force B.C. Ferries to build elsewhere. In a statement to Postmedia on Thursday, his ministry said it had been informed of the decision ahead of time, at which point Farnworth put his concerns to the ferry service about signing a contract actively engaged in a trade war with Canada. 'While it's disappointing there could not be more Canadian content in this contract, it's clear B.C. needs these new boats and needs them quickly,' said Farnworth. The ministry disputed the notion that the government can do anything about the contract, despite the fact that the provincial government is the corporation's only shareholder and MacPhail is a former NDP cabinet minister. Read More Sports Soccer Vancouver Canucks News Crime
Toronto Sun
10 hours ago
- Toronto Sun
B.C. Ferries contract plays to China's military aspirations, expert warns
B.C. Ferries has hired Weihai shipyards to build roll-on, roll-off ships. An expert says China's interest in such ferries is military An aerial view of the China Merchants Industry Weihai Shipyards in Weihai, Shandong. Photo by China Merchants Industry An expert in Chinese state influence operations is warning that B.C. Ferries' contract with a Chinese shipyard to build four large ferries might help China prepare to invade Taiwan. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Brian Hart, deputy director and fellow of the China power project at the Center for Strategic and International Studies in Washington D.C., says China wanted to become an expert in roll-on, roll-off passenger ferries because they can be used as troop transports in any military action. 'They've started to adapt some of those roll-on, roll-off passenger ferries to be able to support military operations, including amphibious landing operations,' he said. China, which insists Taiwan is an integral part of China, has long been feared in the West to be preparing to seize the island by military force. However, Hart said China Merchants Industry Weihai Shipyard, while state controlled, is not owned by the China State Shipbuilding Corporation, which has been tasked with building China's navy, making it 'less problematic' than other shipyards in China. This advertisement has not loaded yet, but your article continues below. He is also glad to see that B.C. Ferries has taken the step to install all of its IT and vessel software in Canada after the ships are built, because not doing so could have left the corporation open to cybersecurity risks. 'I think that's a good best practice if a company is still buying from a Chinese shipyard,' said Hart. 'It helps, not with just cybersecurity, but also potentially with technological transfer to to China, which is an issue in itself.' Benjamin Fung, a professor in McGill's school of information studies, said that allowing China access to the internal systems of the ferries could have given the country the ability to plant a Trojan horse that could be used to stop them from working in a moment of geopolitical crisis. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. He said this has been evidenced in Russia's attack on Ukraine where Vladimir Putin's army used cyberattacks in the lead-up to the invasion. 'Given the geopolitical tension, it is difficult to guarantee the security of the ferries during 'critical moments', such as military action in the Taiwan Strait,' said Fung in an email to Postmedia. 'China may not have much interest in the confidentiality of the ferries, but it is possible to make the ferries stop functioning.' Part of the problem for companies like B.C. Ferries is that China has come to so thoroughly dominate the global shipbuilding industry, building roughly 60 per cent of all ships worldwide, that the ferry company didn't have much choice when going through the procurement process. This advertisement has not loaded yet, but your article continues below. Although B.C. Ferries has used shipyards in countries like Poland, Romania and Germany in the past, this isn't always possible, according to Hart. 'I think it's a challenge where China's rise and dominance has undercut other players in the industry, like Japan and Korea. It's also undercut U.S. and other countries ability to kind of maintain their own domestic shipping industry.' The head of the union representing B.C. Ferries workers is pushing both the provincial and federal governments to spend more on domestic shipping so that issues like this don't arise in the future. Eric McNeely, president of the B.C. Ferry and Marine Workers' Union, said it isn't that companies like Seaspan in B.C. don't have the capacity, but that they can't compete with Chinese firms that have massive state subsidies and cheap labour. This advertisement has not loaded yet, but your article continues below. 'Society has become a little accustomed to trying to seek out the most cost-effective method, right off the kick and not really looking at what that means long-term,' he said. 'That's okay, maybe for an iPhone that you have for two years. But it's a little different when you're looking at ships that are going to be in service, carrying humans for 40, 50 or 60 years.' McNeely acknowledged that building the ships at home would likely take longer and cost more, but said it could benefit B.C. by creating thousands of jobs and developing a world class shipbuilding industry in a country with one of the world's largest coastlines. He said he worries about the safety of his members who will be sent to China to oversee the project given the arrests of Canadians Michael Kovrig and Michael Spavor in 2018 after Canada detained Huawei executive Meng Wanzhou. This advertisement has not loaded yet, but your article continues below. Neither B.C. Ferries CEO Nicolas Jimenez or board chair Joy MacPhail were available for comment Thursday. Postmedia asked the corporation whether it knew the reasoning for why China has come to specialize in roll-on, roll-off ferries and what the added time and cost would be if it were to build the ferries domestically. The corporation was also asked who it had consulted in the provincial and federal governments about the contract offer to Weihai and whether the province could force B.C. Ferries to retract the contract if it wanted to. It didn't answer the questions, but said its contract is 'consistent with established practice across the Canadian marine sector' noting that over 100 ships have been constructed in China over the past decade for companies such as Seaspan, Canada Steamship Lines and federal ferry corporation Marine Atlantic. This advertisement has not loaded yet, but your article continues below. B.C. Transportation Minister Mike Farnworth has been critical of the deal but there is no indication he plans to intervene to force B.C. Ferries to build elsewhere. In a statement to Postmedia on Thursday, his ministry said it had been informed of the decision ahead of time, at which point Farnworth put his concerns to the ferry service about signing a contract actively engaged in a trade war with Canada. 'While it's disappointing there could not be more Canadian content in this contract, it's clear B.C. needs these new boats and needs them quickly,' said Farnworth. The ministry disputed the notion that the government can do anything about the contract, despite the fact that the provincial government is the corporation's only shareholder and MacPhail is a former NDP cabinet minister. Read More Toronto Maple Leafs Columnists Columnists Toronto & GTA Sunshine Girls
