BC Ferries picks Chinese shipyard to build four new major vessels

After a global procurement process that began nearly four years ago, BC Ferries has selected China Merchants Industry (CMI) Weihai — a Chinese state-owned shipyard — to build its next generation of hybrid-electric passenger ferries.

The deal, announced Tuesday, is a major milestone in the company’s long-term plan to modernize its aging fleet.

The four new vessels are expected to enter service between 2029 and 2031, replacing ships increasingly prone to mechanical issues on the province’s busiest routes between Vancouver Island and the Lower Mainland.

BC Ferries CEO Nicholas Jimenez says the decision to go overseas was about getting “the best deal for British Columbians and getting the best deal for BC Ferries.”

“We did site visits at the shipyard, and I’ve visited numerous shipyards around the world. There is good evidence of safety culture at the CMI shipyard. The single highest rated criteria for us was safety management,” said Jimenez.

While BC Ferries claims no local or Canadian shipyards submitted bids, the decision to award the project to CMI has already drawn criticism — not just for its geopolitical implications, but also for what some view as a missed opportunity to invest in domestic jobs and shipbuilding.

Hours after the selection was made public, Transportation Minister Mike Farnworth says he raised concerns with BC Ferries about its decision, given the ongoing trade tensions between Canada and China.

Farnworth says he’s worried about procuring services from “any country that is actively harming Canada’s economy” with tariffs and protectionism.

Why China

CMI Weihai is part of a sprawling conglomerate with roots in the Qing Dynasty.

The shipyard has built ferries for international companies like Stena RoRo (Sweden), Grimaldi Lines (Italy), and France’s Brittany Ferries, and also has experience with Canadian regulatory standards through its work for Marine Atlantic.

Despite broader concerns around human rights, industrial subsidies, and national security in China’s shipbuilding sector, BC Ferries claims it conducted rigorous site inspections, third-party evaluations, and reference checks before making the decision.

BC Ferries also says the contract includes different “risk transfer provisions” — legal protections to mitigate cost increases or international tensions.

While the exact contract value has not been disclosed, BC Ferries suggests it falls within the approval limits set by the independent BC Ferries Commissioner.

What happens next?

The four new ferries will feature diesel-electric hybrid propulsion systems, with the capability to operate on full electric power once charging infrastructure is in place.

BC Ferries says it’s currently working with BC Hydro to determine the feasibility of outfitting terminals for electrification.

“We don’t have a timeline on that just yet. I would expect that will come in the next two years, we’ll have a better sense,” said Jimenez.

“And it’s not just whether there is power available, and we have an effective way to bring that power into the terminals. It’s also the cost.”

Despite the offshore construction, BC Ferries says the long-term economic impact will remain largely local, with more than $1 billion in maintenance and refits expected to flow back into B.C.’s shipyards and maritime sector over the vessels’ 45-year lifespan — including $230 million in the first 10 years alone.

The Salish Class, the most recent vessels built for BC Ferries, were manufactured at the Remontowa Shipbuilding S.A. in Gdansk, Poland.

The Salish Class vessels operate on liquefied natural gas, other than the diesel-electric hybrid propulsion systems of the prospected new vessels.