July 7,2025
RED FM News Desk
The House of Commons transport committee has agreed to launch a study into the $1-billion loan provided by the Canada Infrastructure Bank to B.C. Ferries for the purchase of four hybrid electric-diesel ships from a Chinese shipbuilder.
Last month, B.C. Ferries announced that it had awarded the contract to China Merchants Industry Weihai Shipyards following a five-year procurement process that did not receive any bids from Canadian companies.
Federal Transport Minister Chrystia Freeland expressed concern in a June 20 letter to her B.C. counterpart, stating she was “dismayed” by the agreement and urged B.C. Ferries to address potential security concerns. She also requested assurance that no federal funds would be used directly to acquire the vessels.
The Canada Infrastructure Bank, which provided the $1-billion loan, stated on June 26 that the ferries likely wouldn’t have been purchased without the financing.
The committee plans to call Transport Minister Freeland, Infrastructure Minister Gregor Robertson, and the CEOs of B.C. Ferries and the Canada Infrastructure Bank to testify. Hearings are to be scheduled within the next 30 days.
Conservative transport critic and committee co-chair Dan Albas requested the meeting, questioning why Canadian taxpayer money is funding shipbuilding overseas during a trade dispute with the U.S. and as China imposes tariffs on Canadian agricultural exports. The committee will decide on next steps after the testimony.
B.C. Ferries CEO Nicolas Jimenez defended the decision, saying the selected bid offered the best overall value and that no Canadian shipyards submitted proposals. He added that the low-interest loan could save customers and taxpayers up to $650 million.
“Without this financing, we would still build the vessels, but the additional cost would have to be covered through higher fares or increased government funding,” Jimenez said.
The new vessels are expected to be delivered between 2029 and 2031.
Loading ...
