Ottawa to investigate foreign shipbuilding deal amid local industry concerns and subsidy gaps
In a bold move stirring national debate, BC Ferries’ $1 billion loan from the Canada Infrastructure Bank to fund ship construction in China has caught the attention of Parliament. The House of Commons transport committee voted unanimously this week to open an official inquiry into the agreement. The deal, which involves China Merchants Industry Weihai Shipyards, has sparked concerns over domestic industry exclusion and long-standing subsidy disparities between coastal ferry services.
A Billion-Dollar Deal with Strings Attached
The Canada Infrastructure Bank committed to finance the construction of four new electric-diesel ferries for BC Ferries. The breakdown includes up to $690 million for vessel construction and $310 million to support electrification infrastructure. Notably, the deal went ahead without a single Canadian bid, raising questions about fairness in the procurement process.
In a statement dated June 26, the bank acknowledged that without its support, these vessels “wouldn’t likely be purchased.” Critics argue that while the loan aims to modernize the fleet, it may also undercut local shipbuilding opportunities.
Ottawa Demands Answers
In response, the transport committee will summon key decision-makers to testify, including:
Housing and Infrastructure Minister Gregor Robertson
Transport Minister Chrystia Freeland
BC Ferries CEO Nicolas Jimenez
Canada Infrastructure Bank executives
Freeland has already voiced strong disapproval. In a letter to her B.C. counterpart, Mike Farnworth, she wrote she was “dismayed” by the deal, urging the province to address security risks and confirm that no federal subsidies would support the purchase.
B.C. Premier Urges Broader Focus
At a press conference in Burnaby, B.C. Premier David Eby didn’t just comment on the procurement—he called for a deeper look into how Ottawa treats the coasts differently.
“The funding ratio is outrageous,” said Eby. “It’s $300 to $1 in federal support for Atlantic ferries versus ours in B.C.”
Eby sees this as an opportunity to rethink national ferry policy and re-energize Canada’s domestic shipbuilding industry.
BC Ferries Defends Its Position
BC Ferries CEO Nicolas Jimenez clarified that the loan was secured before the Chinese contract was finalized, and stressed that no Canadian companies submitted bids.
He emphasized that without the $1 billion loan, the ferries would still need to be built—but at a cost of higher passenger fares or greater taxpayer investment.
Jimenez also pointed out a double standard: “This loan will be fully repaid to the bank, unlike federal grants or operating subsidies given to East Coast providers—who also contracted the same Chinese shipyard.”
Conservative Criticism Grows Louder
Conservative transport critic Dan Albas, who co-chairs the committee, led the charge for Monday’s emergency meeting. He expressed frustration that, amid a trade war with the U.S. and ongoing Chinese tariffs on Canadian agriculture, public funds are fueling foreign shipbuilding.
Albas asked, “Why is Canada investing abroad while Canadian shipyards sit idle?”
Timeline and Next Steps
The committee will begin hearings within the next 30 days. Following the testimonies, MPs will deliberate on possible policy changes or restrictions regarding future procurement and public financing.
The four new ferries are scheduled to join BC Ferries’ fleet between 2029 and 2031.
Stay tuned to Maple News Wire for real-time updates on Canada’s evolving transport and infrastructure policies.
