Controversy over BC Ferries’ decision to award a contract to a Chinese state-owned shipyard to build four new vessels has reached Ottawa. Federal Transportation Minister Chrystia Freeland had some strong words for her B.C. counterpart Mike Farnworth in a letter dated June 16 and obtained by CTV News Friday. “It is with great consternation and disappointment that I learned of BC Ferries’ recent announcement it has selected China Merchants Industry Weihai Shipyards,” the letter begins. Freeland pointed out China’s tariffs on Canadian agriculture products—which include a 100 per cent levy on canola oil, meal and peas and 25 per cent on fish and pork—calling them unjustified. She also highlighted concerns regarding threats to cybersecurity from the country. “I am dismayed that BC Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context,” she wrote. She asked to be informed of what measures BC Ferries is taking to address potential security threats. “I would like your assurance that BC Ferries conducted a robust risk assessment, and I expect them to engage with the relevant provincial and federal security agencies and departments to mitigate any security risk,” the letter reads. When BC Ferries announced the deal on June 10, it said it would have its own team of experts on site during construction “to provide oversight and quality assurance.” “We are confident that CMI Weihai will be able to meet our high expectations for safety and quality, while delivering tremendous value for our customers and on-time delivery of the four vessels,” the company said in a statement at the time. In another statement issued Friday in response to Freeland’s letter, BC Ferries added that its decision “is consistent with recent practice in Canada’s marine sector.” “Over the past decade, Canadian companies have acquired about 100 vessels built at Chinese shipyards — including one last year by Marine Atlantic, a federal Crown corporation, through an arrangement with Stena RoRo from this same Chinese shipyard,” the statement reads. Notably, no Canadian companies placed a bid on the project. When BC Ferries opened its call for proposals last September, major B.C. shipbuilder Seaspan said in a statement it would not be able to compete with countries that pay workers less and have lower environmental and safety standards. “Given the value of the contract and the level of taxpayer funding that has been provided to support BC Ferries’ operations, 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,” Freeland wrote. BC Ferries said it has been in contact with Transport Canada since before the deal with CMI Weihai was reached, and has been working with Public Safety Canada on safety and security issues since May. The company said “sensitive systems” in the new vessels would be “sourced separately and independently certified” before the ferries enter service. “BC Ferries intends that all of our IT networks will be procured from within Canada and installed on the ship by BC Ferries’ own personnel,” the company said. Freeland’s letter listed some of the funding the federal government has given the province and BC Ferries over the years, including $308 million during the COVID-19 pandemic—and asked Farnworth to “verify and confirm with utmost certainty that no federal funding will be diverted to support the acquisition of these new ferries.” B.C. leaders, namely Farnworth and Premier David Eby, have—using much softer language—expressed disapproval of BC Ferries’ decision, but said they won’t step in to kill the contract, despite calls from opposition critics and unions to do so.
