Transport committee will study BC Ferries’ Chinese ship contract

A controversial decision to contract a Chinese state-owned firm to build new BC Ferries vessels is facing additional scrutiny.

The House of Commons transport committee agreed on Monday to launch a study into the $1 billion loan BC Ferries received from the Canada Infrastructure Bank to finance the purchase of four new electric-diesel ships from a Chinese shipbuilder.

BC Ferries announced last month that it had hired China Merchants Industry Weihai Shipyards to build the new ships following a five-year procurement process that did not include a Canadian bid.

The Canada Infrastructure Bank contributed $1 billion to the deal and said in a June 26 statement that the new ferries “wouldn’t likely be purchased” without this financing.

The bank said the low-cost loan includes up to $690 million to buy the vessels and up to $310 million for electrification infrastructure.

The Canada Infrastructure Bank is accountable to Parliament through Housing and Infrastructure Minister Gregor Robertson.

The committee unanimously voted to call Robertson, along with Transport Minister Chrystia Freeland, and the CEOs of BC Ferries and the Canada Infrastructure Bank to testify.

Jeff Groot, executive director of communications for BC Ferries, said the company signed the loan with the bank before the contract with the Chinese shipyard was finalized.

At an unrelated news conference in Burnaby, B.C., on Monday, Premier David Eby said he would urge the committee to broaden its enquiry to look at how unfairly B.C. users are treated compared with Atlantic ferry users.

He said the difference is $300 to $1 in federal government subsidies.

“So, I would encourage the federal committee to have a look at the differential treatment of the coasts in terms of ferry support, and I think going forward, there is a huge opportunity for us to work with the federal government to ensure that our shipbuilding industry has the opportunity to build these ferries right here in Canada.”

BC Ferries CEO Nicolas Jimenez didn’t respond when asked about having to testify before the committee, but said in a statement Monday their decision was made in the absence of any Canadian bids.

He said without the loan, they would still be building the ferries but would have to make up the difference with higher fares or more investment from upper levels of government.

“Either way, the loan will be paid back to (Canadian Infrastructure Bank), unlike federal grants or regular operating funding that is provided to the east coast ferry provider that had a ship built by the same shipyard,” said Jimenez, referring to a Marine Atlantic contract to the Chinese firm.

The committee hearings are to be scheduled within the next 30 days.

Freeland sent her B.C. counterpart, Mike Farnworth, a letter on June 20 saying she is “dismayed” by the deal and expects BC Ferries to mitigate potential security risks.

She also asked the B.C. government to confirm that no federal funding will be diverted to purchase the ferries.

Dan Albas, Conservative transport critic and committee co-chair, requested Monday’s meeting. He said he wants to know why $1 billion in public funds has been earmarked to finance overseas shipbuilding in the middle of a trade war with the U.S., and as China charges tariffs on some Canadian agricultural products.

The committee will debate next steps once the testimony is complete.

The new vessels for BC Ferries are expected to join the fleet between 2029 and 2031.

-- With files from Wolfgang Depner in Victoria.

This report by David Baxter, The Canadian Press, was first published July 7, 2025