Otawa Criticizes BC Ferries for Offshore Shipbuilding Deal
The federal government is voicing sharp disapproval over BC Ferries’ decision to contract a Chinese state-owned shipyard for building four new ferries—a move that’s ignited national debate about economic strategy, cybersecurity, and Canadian industry support.
In a letter dated June 16, Transport Minister Chrystia Freeland criticized the B.C. government and BC Ferries, calling the deal both troubling and ill-timed, especially amid tense geopolitical relations with China.
“Consternation and Disappointment” from Ottawa
Freeland did not mince words in her message to B.C. Public Safety Minister Mike Farnworth, saying she was “dismayed” that BC Ferries would award the high-value contract to China Merchants Industry Weihai Shipyards.
Freeland pointed to China’s punitive tariffs on Canadian agricultural goods—including a 100% levy on canola oil and peas, and 25% on pork and fish—and its growing reputation as a cybersecurity threat.
“I expect BC Ferries to work with Canadian security agencies to fully assess and mitigate any risks,” Freeland stated, calling for robust oversight and assurance that proper security protocols are in place.
BC Ferries Defends Its Decision
BC Ferries responded by reiterating that the deal meets all current industry standards. The company said it will station its own team of quality assurance experts at the shipyard during construction to monitor progress.
The company added that it has already engaged with Public Safety Canada and Transport Canada and plans to source all sensitive systems domestically, with installation handled exclusively by BC Ferries personnel.
“All IT networks will be procured within Canada and installed by our own staff,” the statement clarified.
No Canadian Bids, Says BC Ferries
One of the biggest surprises in this procurement process? No Canadian shipbuilders submitted bids. According to BC Ferries, major local firms like Seaspan declined to compete, citing their inability to match international bids due to lower wage, environmental, and safety standards overseas.
This left the field open to global bidders, with CMI Weihai ultimately selected for offering on-time delivery, high safety standards, and cost-efficiency.
Freeland: Where’s the Canadian Content?
Freeland’s frustration extended beyond geopolitics. She questioned why no Canadian content requirement was included in the contract, despite the significant taxpayer funding BC Ferries has received, including $308 million during the pandemic.
She also demanded that B.C. confirm no federal funds would be used to support this offshore procurement.
Province Not Cancelling Deal—But Not Happy Either
While both Premier David Eby and Minister Farnworth have publicly expressed dissatisfaction with BC Ferries’ choice, they’ve stopped short of intervening to cancel the agreement. Opposition parties and unions, however, continue to push for its reversal.
Despite that pressure, the contract stands—for now.
Looking Ahead
BC Ferries maintains that its decision is in line with broader marine industry trends, noting that over 100 vessels have been built in Chinese shipyards for Canadian operations in the past decade—including ships for Marine Atlantic, a federal Crown corporation.
Still, with national security, domestic job creation, and public transparency on the line, this story is far from over.
Stay tuned to Maple Wire for the latest developments on Canada’s marine industry and public spending accountability.
