BC Ferries’ Purchase of Chinese Vessels Sparks Controversy
BC Ferries’ decision to acquire four vessels from a Chinese shipyard has ignited a heated debate in Ottawa, with critics voicing concerns over the impact on Canadian shipbuilding industry. The controversy has been further fueled by the revelation that Canada’s policy bank provided a CA$1 billion loan to facilitate the overseas purchase, contrary to federal policies promoting domestic shipyards.
The head of the Conservative Party, Pierre Poilievre, has called for the cancellation of the loan, citing the need to support Canadian workers and industries. According to Poilievre, the move not only undermines Canadian shipbuilders but also fails to hold China accountable for imposing tariffs on Canadian exports.
Joining the call for action, B.C. Conservative leader John Rustad criticized BC Ferries for rewarding a country that is actively harming Canada’s economy. Rustad urged the province to cancel the contract and hold the ferry operator’s board accountable for its decision.
Meanwhile, Canadian shipbuilders have expressed disappointment over the procurement process, with Chantier Davie CEO James Davies highlighting the challenges faced by domestic companies in competing with Chinese shipyards. Despite attempts to engage with BC Ferries, Canadian yards were unable to submit competitive bids due to pricing disparities caused by state subsidies and lower labor costs in China.
In defense of its choice, BC Ferries emphasized the technical capabilities, quality, and cost-effectiveness of the selected shipbuilder, China Merchants Industries Weihai (CMI Weihai). The ferry agency justified its decision by pointing to the track record of Chinese shipyards in delivering vessels on time and within budget.
It is worth noting that the preference for Chinese shipbuilders is not unique to BC Ferries, as many commercial operators worldwide, including Canadian companies, opt for vessels constructed in China. With state support and investments, Chinese shipyards have emerged as global leaders in shipbuilding, posing stiff competition to traditional maritime powers like South Korea and Japan.
While the controversy surrounding BC Ferries’ procurement strategy continues to escalate, the broader implications for the Canadian shipbuilding industry remain a subject of intense debate.