Latest news with #ChinaShipyard
CBC
6 hours ago
- Business
- CBC
Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company
B.C. Ferries has drawn the ire of federal Transportation 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." WATCH | Farnworth worries about B.C. Ferries contract: Transportation minister concerned over B.C. Ferries' construction deal with Chinese shipyard 9 days ago Duration 2:06 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.
CTV News
8 hours ago
- Business
- CTV News
Chrystia Freeland slams BC Ferries' decision to build ships in China
Minister of Transport and Internal Trade Chrystia Freeland responds to a question during question period in the House of Commons on Parliament Hill in Ottawa on Thursday, June 12, 2025. THE CANADIAN PRESS/Sean Kilpatrick Controversy over BC Ferries' decision to award a contract to a Chinese state-owned shipyard to build four new vessels has reached Ottawa. Federal Transportation Minister Chrystia Freeland had some strong words for her B.C. counterpart Mike Farnworth in a letter dated June 16 and obtained by CTV News Friday. Read more: Eby won't stop BC Ferries from building new ships in China, but says it's 'not ideal' 'It is with great consternation and disappointment that I learned of BC Ferries' recent announcement it has selected China Merchants Industry Weihai Shipyards,' the letter begins. Freeland pointed out China's tariffs on Canadian agriculture products—which include a 100 per cent levy on canola oil, meal and peas and 25 per cent on fish and pork—calling them unjustified. She also highlighted concerns regarding threats to cybersecurity from the country. 'I am dismayed that BC Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context,' she wrote. Read more: BC Ferries union upset Chinese company was hired to build new vessels She asked to be informed of what measures BC Ferries is taking to address potential security threats. 'I would like your assurance that BC 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,' the letter reads. When BC Ferries announced the deal on June 10, it said it would have its own team of experts on site during construction 'to provide oversight and quality assurance.' Read more: Business leader says BC Ferries' hiring of Chinese shipyard is 'informed decision' 'We are confident that CMI Weihai will be able to meet our high expectations for safety and quality, while delivering tremendous value for our customers and on-time delivery of the four vessels,' the company said in a statement at the time. Notably, no Canadian companies placed a bid on the project. When BC Ferries opened its call for proposals last September, major B.C. shipbuilder Seaspan said in a statement it would not be able to compete with countries that pay workers less and have lower environmental and safety standards. 'Given the value of the contract and the level of taxpayer funding that has been provided to support BC Ferries' operations, I am surprised that BC 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,' Freeland wrote. Read more: Minister flags concern over BC Ferries' deal with Chinese state-owned shipyard She listed some of the funding the federal government has given the province and BC Ferries over the years, including $308 million during the COVID-19 pandemic—and asked Farnworth to 'verify and confirm with utmost certainty that no federal funding will be diverted to support the acquisition of these new ferries.' B.C. leaders, namely Farnworth and Premier David Eby, have—using much softer language—expressed disapproval of BC Ferries' decision, but said they won't step in to kill the contract, despite calls from opposition critics and unions to do so.
