Federal Transport and Internal Trade Minister Chrystia Freeland told her B.C. counterpart in a July 16 letter that she does not want any federal money to go toward the four new ships BC Ferries is having built in China.
"It is with great consternation and disappointment that I learned of BC Ferries’ recent announcement that it has selected China Merchants Industry Weihai Shipyards (CMI Weihai) to build four new major vessels," Freeland said in the letter to B.C. Transportation and Transit Minister Mike Farnworth.
The letter was provided by Premier David Eby's office to Black Press Media on Friday afternoon (June 20) upon request.
An emailed statement from B.C.'s Transportation and Transit Ministry said that the letter is being reviewed and Farnworth has spoken to Freeland about the need to bolster B.C.'s shipbuilding sector.
Eby told reporters on Tuesday that the ferry deal is the result of a five-year procurement process, no Canadian companies bid on the contract, and it would have cost at least $1 billion more to build the ships elsewhere.
Freeland gives several reasons for her concern with the contract in the letter. These include tariffs on Canadian agricultural products, the need to support Canadian shipbuilding, and cybersecurity threats from the Chinese government.
She suggests the Crown corporation should be obliged to buy Canadian.
"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," she said.
Freeland points out all of the federal financial support given to BC Ferries, including $37.8 million for the 2025-26 fiscal year and $308 million to cover financial losses during the COVID-19 pandemic.
"I am dismayed that BC Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context, and I ask that you verify and confirm with utmost certainty that no federal funding will be diverted to support the acquisition of these new ferries," she said.
BC Ferries communications director Jeff Groot provided a statement on Friday evening defending the decision to buy the ferries from China, explaining that the bid was the strongest by a wide margin and consistent with recent practices and purchases — including procurement of a ship by Marine Atlantic, a federal Crown corporation, from the same shipyard.
"Globally, only a few shipyards have the capacity to deliver complex passenger ferries on the timelines and budgets required," Groot said.
He added that sensitive information technology systems will be installed by BC Ferries personnel in Canada, and an oversight team will be on site in China during the construction of the ships themselves.
"We remain committed to transparency, security, and delivering long-term value for Canadians," Groot said.
