Latest news with #CMIWeihai
Vancouver Sun
2 days ago
- Business
- Vancouver Sun
What to know about the Weihei shipyard chosen by B.C. to build four major vessels
A 2024 Forbes article described how Asian countries, including China, were building ships at 'breakneck' speed and racing to get a foothold in North America. This week, B.C. Ferries announced that it had chosen CMI Weihai, a Chinese, state-owned shipyard, to build four new major vessels. It has set off a flurry of interest, including B.C.'s transportation minister flagging worries about the choice. In a statement, Mike Farnworth said: 'I do have concerns around procuring services from any country that is actively harming Canada's economy through unfair tariffs or other protectionist trade practices.' Start your day with a roundup of B.C.-focused news and opinion. 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 Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. CMI stands for China Merchants Industry Holdings Co., a firm that is part of the China Merchants Group, a state-owned conglomerate headquartered in Hong Kong with businesses in transportation, finance and property. Weihai is a city in China's Shandong province on its east coast, southeast of Beijing and north of Shanghai, across from Korea. CMI owns several shipyards in other Chinese cities and took over the Weihai shipyard in 2019. Before this, the Weihai shipyard was owned by another state-owned company, AVIC International, whose departure from the market was described as part of a major wave of consolidation of the shipbuilding business in China under the government's mandate. Shortly after this, Beijing announced it would merge its two largest shipbuilders — Shanghai-based China Shipbuilding Industry and China State Shipbuilding — into one mega, state-owned China Shipbuilding Group. China by far dominates the world shipbuilding market in all categories of vessels, followed by South Korea and Japan. The B.C. Ferries' announcement noted that CMI Weihai has built passenger and vehicle vessels for Stena RoRo in Sweden and Grimaldi Lines in Italy. It also noted that through a long relationship with Stena RoRo, CMI Weihai has also built vessels for Canada's Marine Atlantic ferry company, a federal Crown corporation, and other operators such as Corsica Lines and Brittany Ferries in France. In February 2024, CMI Weihai delivered a new ferry to Marine Atlantic for its line between Newfoundland and Nova Scotia. Canadian shipbuilders and others had protested when Marine Atlantic awarded a $100 million contract in late July 2021 to the Swedish company, which subcontracted construction to CMI Weihai. This was at a time when Canadians Michael Spavor and Michael Kovrig were held in Chinese prisons after Huawei Technologies Co. Ltd. CFO Meng Wanzhou was detained in Canada on a U.S. extradition warrant over allegations of fraud. Grimaldi Lines said in April that it has commissioned the construction of nine so-called Ro-Pax ferries from CMI Weihai, with six that will serve routes in the Mediterranean and three that will be delivered to Finnish-company Finnlines and run in the Baltic Sea. The deal has been reported to be worth Euros1.3 billion or US$1.49 billion for ferries that will be delivered in 2028 to 2030. Not noted in B.C. Ferries' announcement is that when AVIC International owned the Weihai Shipyard, between 2011 and 2019, it acquired Deltamarin, a company headquartered in Turku, Finland. It's a ship design consultancy, established in 1990 with 400 experts in Finland and Poland. It's described on its website as being an independent part of the China Merchants Group. In May, when Deltamarin and CMI Weihai announced it will work together on the design and engineering of the vessels for Finnlines, it noted a 'long-standing partnership' and said this latest order brings the total number of vessels designed by Deltamarin and built by Weihai shipyard to 22 in the last 10 years. jlee-young@
Global News
2 days ago
- Business
- Global News
BC Ferries' plan to build new vessels in China takes heat from both sides of the aisle
BC Ferries is taking heat from port and starboard over its selection of a Chinese shipyard to build its next four major vessels. The ferry service opened bidding for its major vessel replacement project to pre-qualified shipyards last September, and on Tuesday announced it had chosen China Merchants Industry Weihai Shipyards (CMI Weihai) following a due diligence process. That decision has landed in the choppy waters of a global trade war and a surging 'buy Canadian' movement that was not on the radar last fall. 1:52 BC Ferries contract awarded to Chinese shipyard B.C. Transportation Minister Mike Farnworth said Wednesday that while BC Ferries is an independent organization that makes its own commercial decisions, he was 'disappointed (in) the fact that there is not more Canadian content' in the plan. Story continues below advertisement 'Whenever contacts like this are awarded, I want to see as much Canadian and British Columbian content as possible.' BC Ferries is a private company, not a Crown corporation. However, its sole shareholder is the B.C. government. The issue has also drawn fire from the BC Conservatives, who have called for a review of the decision. Leader John Rustad said the decision to source the ferries from China put the province's economy and security at risk, given ongoing trade and tariff tensions with China. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Do we really want Canadian ships built in China?' Rustad said. 'Who knows what that relationship will look like a few years from now.' 2:55 BC Ferries is getting 4 new vessels In announcing CMI Weihai as the builder, BC Ferries cited its strong bid — including technical capabilities, experience and the 'overall cost and value' it delivered. Story continues below advertisement Cost was also front and centre when BC Ferries announced the process. 'What we are not going to do is ask our customers to pay one dollar more than they need to simply because we are picking a local company,' BC Ferries executive director of communications Dave Groot told Global News in a Sept. 27 interview. At the time, B.C.-based Seaspan shipyards said the bid process, which did not include incentives for B.C. or Canadian content, had essentially ruled it out of contention The company acknowledged there was no question that building in B.C. would cost more, but said it would create major economic spinoffs, including income tax revenues from high-paying skilled jobs. Seaspan, which handles highly complex and multi-billion-dollar contracts for the Coast Guard and Canadian Navy, says it is more than capable of delivering the new ferries. 1:03 Seaspan blows horn on BC Ferries' ship-building bidding process 'We acknowledge the need for BC Ferries to get some of these replacement vessels very fast given their aging fleet,' Seaspan senior vice-president and spokesperson Dave Hargreaves said in a Wednesday statement. Story continues below advertisement 'We are hopeful that the B.C. government will work with our B.C. industry team to develop a strategy to build some of the seven vessels, particularly the last two, in B.C. in the future.' Not all reviews of the choice have been bad, however. Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, said the Chinese contract is in the best interests of ferry-dependent communities, adding that BC Ferries did years of due diligence and that no Canadian companies entered bids. 2:01 BC Ferries defends shipbuilding bid process 'This is very timely, and it's a good thing to have this happen,' Williams said, noting that there was an urgent need for greater ferry capacity. At this point, I think it's in the best interest of all the people, who rely on BC Ferries … especially up and down the coast in communities that are very reliant upon it.' Story continues below advertisement The list of pressure points between Canada and China is long. China has imposed a variety of tariffs on Canadian goods, including seafood tariffs that have directly impacted B.C.'s fishing industry. Canada has also raised concerns about the country's human rights record and its support for Russia in the war with Ukraine.
Yahoo
2 days ago
- Business
- Yahoo
BC Ferries deal with Chinese shipyard makes waves in Ottawa
OTTAWA — BC Ferries set off a tidal wave of controversy on Tuesday after announcing a major shipbuilding deal with a Chinese state-owned enterprise, with the ripple effects of the decision reaching Ottawa. Vancouver Island Conservative MP Jeff Kibble raised the issue in Wednesday's question period, accusing the Liberal government of rewarding the provincial carrier for selling out Canada's national interest. 'The Liberals are set to hand over $30 million (in federal subsidies) to BC Ferries while BC Ferries hands over critical jobs, investment and industry to China,' said Kibble. BC Ferries said in a press release that it had awarded China Merchants Industry Weihai Shipyards (CMI Weihai) a contract to build four new vessels after a 'rigorous' global bidding process. Company CEO Nicolas Jimenez was quoted in the release as saying that CMI Weihai was the 'clear choice' for the contract given, among other factors, its 'proven ability to deliver safe, reliable vessels on dependable timelines.' Kibble blasted BC Ferries in the House of Commons for buying the ships from China instead of a 'proven Canadian shipbuilder' and pressed the Liberal government to tie federal ferry subsidies to buying Canadian-built ships. Liberal Transportation Minister Chrystia Freeland said that she shared Kibble's concerns about procurement 'at all levels of government' but wouldn't comment directly on the BC Ferries contract, calling it a provincial matter. One politician who hasn't hesitated to criticize the deal is the provincial minister responsible for BC Ferries. B.C. Transportation Minister Mike Farnworth was quick to distance himself from the decision, saying he was worried about the message it sends in the midst of Chinese economic aggression. 'I do have concerns around procuring services from any country that is actively harming Canada's economy through unfair tariffs or other protectionist trade practices. I have shared these concerns with BC Ferries,' Farnworth told the media. Yet, despite his reservations, he ruled out blocking the BC Ferries-CMI Weihai deal. 'BC Ferries is an independent company responsible for its own operational decisions,' said Farnworth. He added that he was 'disappointed' that the contract didn't include more involvement from Canadian shipyards. BC Ferries' head of fleet renewal, Ed Hooper, told Postmedia that no Canadian shipbuilders bid on the contract won by CMI Weihai. Liberal Prime Minister Mark Carney promised to ramp up Canadian shipbuilding during this spring's federal election campaign. The federal government previously awarded the Chinese state-owned company a contract to build a new vessel for east coast ferry operator Marine Atlantic, according to a 2023 filing from Transport Canada. The ship began service between Nova Scotia and Newfoundland in July 2024. Federal Procurement Minister Joël Lightbound didn't respond to an inquiry from the National Post about the BC Ferries-CMI Weihai deal, and didn't indicate whether the federal government would continue to take bids from the company. A spokesperson with Public Services and Procurement Canada told the National Post that CMI Weihai does not appear on the agency's database of active bids. National Post rmohamed@ Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here.
Vancouver Sun
2 days ago
- Business
- Vancouver Sun
BC Ferries deal with Chinese shipyard makes waves in Ottawa
OTTAWA — BC Ferries set off a tidal wave of controversy on Tuesday after announcing a major shipbuilding deal with a Chinese state-owned enterprise, with the ripple effects of the decision reaching Ottawa. Vancouver Island Conservative MP Jeff Kibble raised the issue in Wednesday's question period, accusing the Liberal government of rewarding the provincial carrier for selling out Canada's national interest. 'The Liberals are set to hand over $30 million (in federal subsidies) to BC Ferries while BC Ferries hands over critical jobs, investment and industry to China,' said Kibble. Start your day with a roundup of B.C.-focused news and opinion. 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 Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. BC Ferries said in a press release that it had awarded China Merchants Industry Weihai Shipyards (CMI Weihai) a contract to build four new vessels after a 'rigorous' global bidding process. Company CEO Nicolas Jimenez was quoted in the release as saying that CMI Weihai was the 'clear choice' for the contract given, among other factors, its 'proven ability to deliver safe, reliable vessels on dependable timelines.' Kibble blasted BC Ferries in the House of Commons for buying the ships from China instead of a 'proven Canadian shipbuilder' and pressed the Liberal government to tie federal ferry subsidies to buying Canadian-built ships. Liberal Transportation Minister Chrystia Freeland said that she shared Kibble's concerns about procurement 'at all levels of government' but wouldn't comment directly on the BC Ferries contract, calling it a provincial matter. One politician who hasn't hesitated to criticize the deal is the provincial minister responsible for BC Ferries. B.C. Transportation Minister Mike Farnworth was quick to distance himself from the decision, saying he was worried about the message it sends in the midst of Chinese economic aggression. 'I do have concerns around procuring services from any country that is actively harming Canada's economy through unfair tariffs or other protectionist trade practices. I have shared these concerns with BC Ferries,' Farnworth told the media. Yet, despite his reservations, he ruled out blocking the BC Ferries-CMI Weihai deal. 'BC Ferries is an independent company responsible for its own operational decisions,' said Farnworth. He added that he was 'disappointed' that the contract didn't include more involvement from Canadian shipyards. BC Ferries' head of fleet renewal, Ed Hooper, told Postmedia that no Canadian shipbuilders bid on the contract won by CMI Weihai. Liberal Prime Minister Mark Carney promised to ramp up Canadian shipbuilding during this spring's federal election campaign. The federal government previously awarded the Chinese state-owned company a contract to build a new vessel for east coast ferry operator Marine Atlantic, according to a 2023 filing from Transport Canada. The ship began service between Nova Scotia and Newfoundland in July 2024. Federal Procurement Minister Joël Lightbound didn't respond to an inquiry from the National Post about the BC Ferries-CMI Weihai deal, and didn't indicate whether the federal government would continue to take bids from the company. A spokesperson with Public Services and Procurement Canada told the National Post that CMI Weihai does not appear on the agency's database of active bids. National Post rmohamed@ Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here . Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Vancouver Sun
3 days ago
- Business
- Vancouver Sun
B.C. Ferries selects Chinese state-owned shipyard to build new major vessels
B.C. Ferries has selected a Chinese state-owned shipyard to build its next generation of major vessels. The ferry company announced Tuesday that China Merchants Industry Weihai Shipyards was chosen to build its four new major vessels following a global procurement process that began in 2021 and included international site visits and third-party reference checks. B.C. Ferries CEO Nicolas Jimenez said CMI Weihai was selected because the company is a global leader in passenger-ferry construction and shipbuilding. 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. 'It was the clear choice based on the overall strength of its bid, including its technical capabilities, high-quality and safety standards, ferry-building experience, proven ability to deliver safe, reliable vessels on dependable timelines, and the overall cost and value it delivers for our customers — all essential as we continue to experience growing demand and the urgent need to renew our aging fleet,' Jimenez said in a statement. The four major vessels are expected to be in service by 2031, replacing aging vessels in the B.C. Ferries fleet. B.C. Ferries did not disclose the costs of the four vessels in the announcement, but said the final price was within the approval limits provided by the B.C. Ferries Commissioner. Disclosing the cost could compromise B.C. Ferries' ability to get good deals on future procurement, it said. The corporate has said it expects to spend up to about $5 billion replacing both major and smaller vessels by 2034. Ed Hooper, B.C. Ferries' head of fleet renewal, said the ferry company will be stationing a team of about 20 staff and contractors at CMI Weihai's shipyard throughout construction to provide oversight and ensure quality. CMI Weihai has worked with major shipbuilding companies such as Sweden's Stena RoRo and Italy's Grimaldi lines to provide ferry vessels, and has built vessels for Marine Atlantic Ferry Company, the federal government company that operates a ferry line between Newfoundland and Nova Scotia. Hooper said his staff inspected the shipyard during the selection process and that B.C Ferries is confident CMI Weihai will be able to meet safety and quality standards while delivering the vessels on time, calling the scale and scope of the operations 'impressive.' He said CMI Weihai, one of 20 shipyards determined to be qualified to take the order, has many years of expertise in building the roll-on, roll-off vessels that B.C. Ferries wanted. 'This shipyard has everything that we are looking for,' he said. Colin Cooke, president and chief executive of the Canadian Marine Industries and Shipbuilding Association, earlier called for governments to prohibit government entities and corporations from buying or leasing Chinese-built vessels to protect Canadian industry and national security and to ensure that human rights and ethical business practices are upheld. In a statement last year, Cooke called for a 100 per cent tariff on Chinese-built ships imported into Canada — similar to those imposed on Chinese-built electric vehicles. He said in the statement that China's shipbuilding industry operates under a doctrine where commercial ship exports are subsidized to strengthen the country's military capabilities. 'The very shipyards that produce ferries and cargo vessels for the global market are also used to construct warships,' Cooke said. As 'China's navy continues to grow, it increasingly uses its fleet to challenge Canadian interests and those of our allies in regions extending even to our own Arctic waters.' Mike Corrigan, chief executive officer of Interferry, an international ferry organization, said the vast majority of his association's members have shifted their large ferry orders to Chinese shipyards, as there are few remaining shipyards outside China that still have the desire, expertise and infrastructure required to build and provide support for ferries with large vehicle and passenger capacities. No Canadian shipbuilder submitted bids for B.C. Ferries' latest vessel-construction contract. The ferry company's Island-class electric vessels were built in Romania and its Salish-class vessels were built in Poland. The three Coastal-class vessels — Inspiration, Renaissance and Celebration — were built in Germany at a total cost of more than $500 million. Seaspan, which owns the province's largest shipyards, has said in the past it cannot compete with companies based in low-wage countries that have lower employment, environmental and safety standards, and it had hoped some of the new vessels B.C. Ferries is looking to build would be made in B.C. Based out of the major shipbuilding city of Weihai in Shandong province, China Merchants Industry Weihai Shipyards has been owned by China Merchants Group since 2019. The state-run conglomerate was founded in 1872 during the Qing Dynasty as a merchant house and has since become a pivotal player in China's economy, with sprawling subsidiary operations in transportation, finance, and property. B.C. Ferries said the four vessels will bring more than $230 million into the local marine economy through refits and scheduled maintenance in the first 10 years of service. The vessels, which are expected to last for 45 years, will need more than $1 billion worth of maintenance and refits over their lifespans.
