Canadian Slams BC Ferries shipyard contract with the Chinese naval manufacturer

The largest and oldest shipyard in Canada said it had no chance of offering a Chinese company to build four new ships for British Columbia.

These are the latest criticisms leveled to the ferry operator following his decision to buy ships from CMI Weihai shipyards held by the Chinese state. This criticism and the new punishing prices of China on Canadian agricultural products have renewed the calls for the cancellation of the contract.

“Unfortunately, the supply criteria were strongly weighted towards the lowest price, effectively promoting Chinese shipyards,” James Davies, CEO of Davie Shipyard wrote this month.

The letter was sent to the Bloc Québécois deputy Xavier Barsalou-Duval, vice-president of the Transport Committee of the House of Commons, which examines the loan of $ 1 billion in BC ferries received from the Canada Infrastructure Bank to finance the purchase of new electric diesel ships.

Davies said that the company had asked BC Ferries “to balance the supply criteria by requesting the recognition of Canadian content and innovation”, a request that has been rejected.

“Due to the inconvenience inherent in the prices caused by massive subsidies of states for Chinese shipyards, associated with low wages, low environmental standards and minimum work protections, no Canadian or Western shipyard could reasonably compete, leaving us no choice but to withdraw.”

Look | Federal Minister for Transport concerned by contract:

Minister of Transport concerned by the British Columbia Construction Agreement with the Chinese shipyard

BC FERRIES is found in difficult waters after announcing its construction plan for new ships. As Katie Derosa reports, it is not the ferries that are criticized, it is there that they are built that cause concerns.

Neither Davie nor any other Canadian company offer on the contract. BC Ferries says that it would have cost $ 1.2 billion more to go with a European naval manufacturer.

The CEO of BC Ferries, Nicolas Jimenez, was not available for an interview.

In a press release, Jeff Groot, BC Ferries, executive communications director, challenges the characterization by Davie Shipyard of the tender process.

“Contrary to Davie’s claims that we have” summarily rejected “their proposals, we do not know any concrete request or suggestion of Davie to modify our supply criteria,” said Groot.

“The price was only a secondary factor, representing less than a third of the score, the technical considerations of the shipyard representing more than half of the evaluation,” added the press release.

“The DP has also shown that Canadian content was a score consideration and establishes high safety and environmental standards that each promoter had to respect, regardless of the location or nationality of shipyards.”

Look | The mayors say that the return of contract can be wrong:

Calls to cancel British Columbia contract with erroneous China, say that some mayors

The announcement of BC ferries that its four new ships will be built in China caused a political storm. Some federal and provincial politicians ask that the agreement be fully abandoned. But as Katie Derosa reports, local mayors say that criticism ignores the urgent needs of people in communities depending on ferrys.

The decision of BC Ferries to grant the contract to the shipyard belonging to the State received national attention.

Federal Minister for Transport, Chrystia Freeland, said that she was dismayed by the decision, especially in the face of “unjustified prices” of China on Canadian products, including canola, seafood and pork products.

Freeland also expressed his concerns about potential security threats, including cybersecurity, the Minister of British Columbia Mike Farnworth.

China has now imposed a new price of 75% on the Canadian seeds of Canola, which has renewed the calls to completely cancel the ferry contract.

The Federal Conservative Party and the Conservatives of British Columbia have repeated calls for the federal or provincial government to intervene and force the British Columbia ferries to cancel the contract.

Look | Freeland examines the ferries contract:

The Federal Minister of Transport Slams BC Ferries deals with the Chinese company

BC FERRIES has attracted the anger of the local shipbuilding industry after announcing that a Chinese company will build four ships for its fleet. The Minister of Transport, Chrystia Freeland, recently weighed to share her dismay. Reports Johna Baylon.

“When we are in a situation where a jurisdiction like China intentionally damages our agricultural sector, our aquaculture sector with these new prices … – all these things that are very prejudicial to us here in British Columbia and Canada – you do not return them and do not reward them with a contract for a billion dollars more to build ferries,” said CC conservative chief John Rustad.

Dan Albas, a conservative deputy for the Okanagan Lake West-South Kelowna who sits on the Transport Committee, says that Canadians have the right to worry about the contract, especially in the face of new rates from China.

He calls $ 1 billion loan to BC Ferries from the Canadian Infrastructure Bank to be canceled.

“The People’s Republic of China, they subsidize their steel, they subsidize their naval construction practices. And yet we have the Canadian infrastructure bank that subsidizes more with a billion dollars these industries,” said Albc News.

Eric McNeely, President of the Ferry and Marine Workers’ Union, says he is not surprised by the questions raised in the letter from Davies.

“I think it really emphasizes that the national shipbuilding was not taken into account as a priority and that there was a preference for the lowest sticker price,” he said. “I think it is a real problem that a billion dollars of money from the federal infrastructure bank are intended to go to a hostile commerce partner.”

Look | The Prime Minister wants more federal money for British Columbia Ferries:

The Prime Minister demands lower rates for British Columbia after Ottawa has reduced Ferrys prices in eastern Canada

Prime Minister David Eby calls on Ottawa to increase the federal subsidy for Ferrys users in British Columbia after Prime Minister Mark Carney followed an electoral promise to reduce Ferrys prices in eastern Canada. But as Katie Derosa de CBC reports, David Eby says that this is another example of British Columbia obtaining a raw Ottawa agreement.

The union launched a campaign called Build TheM here, which urges people to contact their deputy and deputy to demand that the ferries be built in Canada. McNeely said that at a time when Canada is fighting trade wars with the United States and China, it could not afford to send nearly a billion dollars to public funds abroad.

BC Ferries gave no indication that he will reverse the course.

“Almost 80% of our operating costs are funded directly by our customers, so each supply decision must balance technical capacity, quality, environmental standards and costs to maintain the rates as affordable as possible,” said Groot.