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4w ago

BC Ferries Draws Federal Fire Over Chinese Shipyard Contract

The transport minister has demanded a security risk assessment with independent certification to ensure no federal funds or vessel systems bypass Canadian industry.

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Transportation Minister Chrystia Freeland said she expects assurances that B.C. Ferries will mitigate security risks, including cybersecurity problems, after contracting a Chinese state-owned shipyard to build four new ferries.

Overview

  • Transport Minister Chrystia Freeland sent a formal letter to B.C. counterpart Mike Farnworth expressing dismay that BC Ferries awarded a $X-billion contract to China Merchants Industry Weihai after a five-year procurement process.
  • BC Ferries defended its choice as the strongest bid by a significant margin and pledged that all sensitive systems will be sourced separately and independently certified before service.
  • Ottawa officials were surprised the procurement did not mandate Canadian content or attract domestic bids despite the contract’s value and federal funding.
  • Freeland highlighted past federal support—including a $37.8 million operating subsidy, a $75 million Canada Infrastructure Bank loan and $308 million in pandemic relief—and sought assurances no existing funds will finance the new vessels.
  • Premier David Eby said the province will respect BC Ferries’ operational independence and warned reopening bids would delay urgently needed fleet renewal while provincial ministers review Ottawa’s security and industry concerns.