Transport Minister Chrystia Freeland slams B.C. Ferries for awarding a shipbuilding contract to a Chinese state firm, citing security and economic concerns.
Federal Minister Raises Alarm Over Chinese Shipyard Deal
Federal Transport Minister Chrystia Freeland has voiced strong disapproval of B.C. Ferries’ recent decision to contract a Chinese state-owned shipyard to build four new passenger vessels. In a sharply worded letter to B.C.’s Transportation Minister Mike Farnworth, Freeland said she was “dismayed” by the selection of China Merchants Industry Weihai Shipyards, particularly in the context of rising geopolitical tensions and ongoing trade disputes with China.
Concerns Over Canadian Industry Exclusion
Freeland criticized the ferry operator for failing to ensure Canadian industry participation in the project, despite significant federal financial support. She noted that the contract’s value and the extent of public funding involved should have warranted a mandate for Canadian content in the procurement process. “I am surprised that B.C. Ferries does not appear to have been mandated to require an appropriate level of Canadian content,” Freeland wrote, expressing disappointment over missed opportunities for the domestic shipbuilding sector.
National Security and Cyber Risk Highlighted
Security concerns were a central theme in Freeland’s letter. She warned of the potential cyber and operational risks posed by involving a Chinese state-owned entity in a critical infrastructure project. Freeland asked the province to clarify how it plans to address cybersecurity vulnerabilities and the future availability of vessel maintenance and spare parts. She demanded confirmation that B.C. Ferries had conducted a “robust risk assessment” and coordinated with both provincial and federal security agencies.
Federal Funding in Question
Freeland also sought assurance that no federal funds would support the acquisition of the China-built ferries. The federal government has committed $37.8 million in subsidies for B.C. Ferries operations in 2025-26 and an additional $75 million through the Canada Infrastructure Bank for zero-emission ferries and charging infrastructure. She asked Minister Farnworth for a formal confirmation that these funds would not contribute to the controversial procurement.
B.C. Government and Ferry Operator Respond
In response, Minister Farnworth acknowledged discussions with Freeland and emphasized the need to strengthen B.C.’s shipbuilding capabilities. “B.C. has the skilled labour,” he stated, adding that support from both federal and provincial levels is crucial to expanding the capacity of Canadian shipyards. The B.C. Ministry of Transportation said it is reviewing the concerns outlined in Freeland’s letter.
B.C. Ferries Defends Its Decision
Jeff Groot, Executive Director of Communications at B.C. Ferries, defended the selection process, stating that the Chinese shipyard provided the “strongest bid by a significant margin.” He explained that few global shipyards possess the capability to deliver complex passenger vessels on the required timelines and budget. Groot noted that over the past decade, Canadian companies have purchased nearly 100 vessels from Chinese shipyards.
Groot also addressed security concerns, stating that all sensitive IT systems would be sourced within Canada and installed by B.C. Ferries personnel. A full-time oversight team will be stationed at the shipyard to monitor construction.
Ongoing Debate Over Domestic Capacity
The controversy has reignited debate over Canada’s shipbuilding capacity and procurement policy. While B.C. Ferries cites efficiency and cost-effectiveness, federal officials argue the long-term strategic and security implications cannot be overlooked. As tensions rise, the spotlight now shifts to how provincial and federal authorities will reconcile national interests with practical limitations in the marine industry.
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