Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company
CBC
B.C. Ferries has drawn the ire of federal Transportation Minister Chrystia Freeland for its decision to contract a Chinese state-owned shipyard to build four new vessels for its passenger fleet.
Freeland also expressed concerns about security risks related to the contract.
In a letter to B.C.'s Transportation Minister Mike Farnworth released Friday afternoon, Freeland expressed her "great consternation and disappointment" with the ferry operator.
"I am dismayed that B.C. Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context," Freeland wrote.
Earlier this month, B.C. Ferries said the winning bidder on the contract is China Merchants Industry Weihai Shipyards. No Canadian companies bid on the ships, according to B.C. Ferries.
But Freeland said, given the value of the contract and the amount of taxpayer money provided to B.C. Ferries' operations, she would have expected Canadian companies to be involved in the bid process.
"I am surprised that B.C. 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," she wrote.
Freeland said China has imposed "unjustified tariffs" on Canadian goods, including 100 per cent tariffs on canola oil, meal and pea imports and a 25 per cent duty on Canadian aquatic products and pork.
She asked her provincial counterpart to share what it will do to address potential threats to security, including cybersecurity, and determine how B.C. Ferries will lessen "the risks that vessel maintenance and spare parts may pose."
"I would like your assurance that B.C. 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."
Freeland said the federal government has a long record of providing financial support to B.C. Ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement.
The letter went on to say the Canada Infrastructure Bank is providing the ferry operator with a $75-million loan to finance the purchase of four zero-emission ferries and install charging infrastructure
Freeland asked Farnworth to confirm "with utmost certainty" that no federal funding would be used to acquire the new ferries.
In an emailed statement late Friday, Farnworth said he has spoken to Freeland about the need to bolster the province's shipbuilding sector.
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