BC

The federal government is giving a massive financial injection to the B.C. shipbuilding industry.

The Seaspan Shipyards in North Vancouver will receive more than $490 million over two contracts for the next stages in building Multi-Purpose Vessels for the Canadian Coast Guard.

“The Multi-Purpose Vessel project will help ensure that members of the Canadian Coast Guard have versatile vessels to complete essential missions in Canada’s oceans and waterways,” Minister of Public Services and Procurement Jean-Yves Duclos said Tuesday.

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Building ships with B.C. workers and high environmental standards matters.

That’s why the shipbuilding industry, local trade unions and hundreds of marine suppliers in B.C. and across Canada have joined forces to help ensure the province isn’t shut out of what will be the largest shipbuilding procurement in B.C.’s history.

Build Ferries BC believes taxpayer money should stay in Canada, but that may not happen if a foreign shipyard is chosen to build the new ferries.  

The new major vessels program

BC Ferries’ New Major Vessels program presents a once-in-a-generation opportunity to build ferries in B.C. and support high-value jobs and economic growth. 

The program includes seven new ferries expected to be in operation by 2029 that will replace six existing major vessels nearing their end-of-life.

Time is running out to make sure B.C. is included in this capital program. BC Ferries is developing the Request for Proposals (RFP) and plans to release it in June – only a couple months from now. Currently, this RFP may have no significant requirements for Canadian involvement and could only favour the lowest price bidder, which means a foreign shipyard will certainly win the competition. 

The provincial government and BC Ferries need to act immediately, or else these vessels might be built overseas with no provincial or Canadian content.

All of the economic benefits, tax revenue, innovation, green technology, supply chain and jobs could go to a foreign country. 

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B.C. Ferries has decided against pursuing an insurance claim for engine problems on its three Coastal class ships and has opted instead to pay the estimated $8.5 million cost out of its contingency fund.

“Taking into consideration our insurance deductible and ­potential for insurance rate increases if we were to make a claim, we have now decided to fund this repair out of our contingency account, which is in place for major incidents such as this one,” Jeff Groot, B.C. Ferries spokesman, said ­Monday.

“When you consider all the costs related to design, freight (air/sea), the rotors themselves and the work to exchange them, installing six rotors is about $1.4 million each, or ­approximately $8.5 million total.”

Coastal Renaissance serves the Tsawwassen-Swartz Bay route. It returned to work on March 4 after it was sidelined on Aug. 17, 2023, and taken to Departure Bay in Nanaimo. The motor was subsequently sent to the U.S. for investigation and repair.

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Two conceptual renderings of BC Ferries’ New Major Vessels program are the first look at what up to seven new ferries could look like when they enter operation starting in 2029.

BC Ferries is building these new major vessels to provide more capacity across the ferry system and continue to improve how we get our customers where they need to be. The vessels will replace up to six existing major vessels that are nearing their end-of-life and will serve the busiest routes between Vancouver Island and Metro Vancouver.

“The New Major Vessels program is the largest part of our capital plan to modernize and transform the ferry experience in British Columbia,” said Nicolas Jimenez, BC Ferries’ President and CEO. “These vessels – greener, more efficient and standardized – represent the future of ferry travel in our province. They will significantly increase daily capacity, provide an enhanced customer experience, improve reliability and reduce environmental impacts.”

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The company plans to award contracts called master services agreements to more than one company starting in the second quarter of this year.

B.C. Ferries is investigating the idea of awarding multimillion-dollar contracts of up to 10 years to B.C. shipyards, booking blocks of time in drydock for refits and repairs.

“Not only is this more cost-effective, but it means we can get our ships back in the water faster, reducing any impact this work has on our ability to provide service for our customers,” company spokesman Jeff Groot said.

The company is looking at awarding contracts called ­master services agreements to more than one company starting in the second quarter of this year.

Vessels would be bundled into two or more groups for companies to bid on.

The estimated contracted cost of drydocking ferries over the next five years is $14.5 million, B.C. Ferries said.

The company has published a request for expressions of interest to provide drydock services, an opportunity that closes March 25. The goal is to test market interest, identify companies able to handle the work, and learn what drydocks are available and how they could accommodate ferries.

B.C. Ferries requires drydocking for routine maintenance or refits, which are planned on a 10-year schedule. It also needs access to a drydock when emergencies arise.

The company typically awards individual contracts for specific vessels needing to go into drydock, but about five years ago it bundled seven vessels to Point Hope Maritime.

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BC Ferries says its fleet maintenance plan for 2024 aims to keep as many vessels online for the peak summer travel period as possible.

“I think the strategy today is frankly best practice,” says Jeff Groot, executive director of communications. “The goal today is to help everyone learn more about all the planning that goes into this – that this is a very strategic, thoughtful process.”

Twenty ships are scheduled for refit this year. BC Ferries says that’s when major work, such as engineer repair, is performed.

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As part of the B.C. Maritime Industries Strategy, 17 companies throughout the province will modernize and expand their maritime infrastructure with funding from the B.C. Maritime Industries Infrastructure Modernization and Expansion Grant Program. Delivered by the Association of British Columbia Marine Industries (ABCMI), this initiative is committed to revitalizing and expanding local B.C. businesses to be more competitive and efficient with a funding commitment of up to $25 million from the Province of British Columbia.

“British Columbia’s maritime industry has a proud history and a strong future here in B.C.,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “Our government is committed to supporting maritime companies to be competitive in the global economy, so they can grow, spark innovation and create more well-paying jobs throughout our province.”

The program offers up to $25 million in contributions through two capital investment streams. Stream 1 provides 50% of project capital costs up to $500,000 for equipment and facility modernization support for boat and shipyards or new small vessel construction infrastructure. Stream 2 offers 25% of project capital costs up to $5 million for increased lift and wharfage capacity, specifically for boat and ship overhaul, refit, maintenance, and repair infrastructure.

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VICTORIA – Damen Shipyards Group (Damen) is the successful proponent to build four new hybrid electric Island Class vessels for BC Ferries that will add capacity across the system and help improve the travel experience for passengers.

“The new hybrid electric vessels will further standardize our fleet, both increasing capacity and improving our flexibility to move ships across routes so our passengers can have confidence that we’ll get them where they need to go,” said Nicolas Jimenez, BC Ferries’ President and CEO. “Adding more Island Class vessels will also make it easier to deploy crew, create efficiencies in training costs, and promote safe, reliable and environmentally conscious ferry services up and down the coast.”

Damen, the same shipyard that built BC Ferries’ previous six Island Class ferries, is based out of the Netherlands and will build the vessels in Romania. Its bid was selected from among several proposals received from around the world. No Canadian companies submitted a bid.

This agreement with Damen is a design-build, fixed-priced contract that provides BC Ferries with substantial guarantees related to delivery dates, performance criteria, cost certainty and quality construction.

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BC Ferries has been given the green light to acquire four more hybrid-electric Island Class ferries.

In a media release Monday, the ferry corporation said the BC Ferries Commissioner had approved a capital expenditure to procure the vessels, which will serve the Nanaimo-Gabriola Island and Campbell River-Quadra Island routes by 2027.

The acquisition will allow Island Class vessels already serving those routes to be re-deployed to serve Salt Spring, Quadra, Cortez, Denman and Hornby islands, boosting capacity, the company said.

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VICTORIA – With today’s major capital expenditure approval by the BC Ferries Commissioner, BC Ferries is able to take the next step towards the purchase of four new hybrid electric Island Class vessels that will increase capacity for passengers across the ferry system.

By 2027, the four new vessels will enter service on the routes connecting Nanaimo Harbour and Gabriola Island (two vessels) and Campbell River and Quadra Island (two vessels), with corresponding electrical upgrades for shore-based rapid charging made to the four terminals on these routes.

“BC Ferries proposed these four new hybrid Island Class vessels because added capacity is critical to helping us get people where they need to go efficiently and reliably,” said Nicolas Jimenez, President and CEO of BC Ferries. “As the Commissioner has noted in her decision, this project will deliver improved customer service, help lower our costs related to crewing and training, and contribute to safe and reliable service for passengers up and down the coast.”

The Island Class vessels that currently serve the above routes will be able to be redeployed to greatly benefit a number of communities with increased capacity to help address current and future demands. Specifically, the Crofton to Vesuvius route will see capacity increased by 20 per cent along with increased frequency provided by two-vessel service. The Quadra to Cortes route capacity will increase by about 70 per cent through the deployment of a larger vessel, and the existing system relief vessel will be redeployed to the Denman to Hornby route year-round, doubling its capacity and particularly improving travel certainty throughout the year.

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B.C. Ferries has issued a request for expressions of interest (RFEOI) to build up to seven new hybrid vessels to replace the aging members of its fleet. 

Spokesperson Deborah Marshall told CBC News the new vessels are expected to replace the C-Class vessels like the Queen of New Westminster and the Queen of Coquitlam that service major routes between Metro Vancouver, the Sunshine Coast and Vancouver Island. 

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A new B.C. Maritime Industries Strategy will chart the course for a more competitive, modernized marine sector with reduced carbon emissions, and creating more highly skilled jobs to meet growing demands.

“B.C. is home to Canada’s largest maritime sector with leaders and businesses at the forefront of marine innovation, clean fuels and technological advancements,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “By modernizing our maritime infrastructure and better co-ordinating maritime industry contracts and workforce strategies, B.C. will support local companies to grow into new international markets, and open more career opportunities and jobs for British Columbians.”  

The new B.C. Maritime Industries Strategy is a key action in the StrongerBC Economic Plan. As much as $25 million will be invested in new and modernized infrastructure and assets that will support shipyards to meet growing market demand for their services and attract more investment to B.C.

The funding is being provided by the Province to the Association of B.C. Marine Industries (ABCMI) to deliver the new B.C. Maritime Industries Infrastructure Modernization and Expansion Grant Program. B.C. companies can apply for grant funding on the ABCMI website.

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