BC Ferries provides passenger and vehicle services to coastal and island communities as one of the world's largest providers. It received a $1-billion loan from the infrastructure bank to buy four new Chinese ships to replace some of its aging fleet.DARRYL DYCK/The Canadian Press
The chief executive of Canada Infrastructure Bank is defending a $1-billion loan to help BC Ferries buy four new ships from China, saying it will lead to improved service for ferry users.
Ehren Cory provided the perspective Friday during an appearance before the House of Commons transport and infrastructure committee, which was gathered to address the controversy over BC Ferries not buying the vessels from Canadian shipyards.
Canada Infrastructure Bank CEO Ehren Cory says the $1-billion will benefit the 23 million people who use BC Ferries.Adrian Wyld/The Canadian Press
The summer sitting was requested by Conservative and Bloc Québécois members of the committee.
During the gathering, Mr. Cory defended the move. “Our loan is about benefitting the B.C. customers, the 23 million people or so who use the service,” Mr. Cory told committee members, referring to the annual number of ferry passengers.
“Our loan is to BC Ferries. That’s who our contractual relationship is with,” he said.
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BC Ferries, one of the world’s largest ferry operations, provides passenger and vehicle services to coastal and island communities. The ferry operator said it had no choice but to strike an agreement with China Merchants Industry Weihai Shipyards, because no Canadian shipyards were available to bid for the job of replacing its four oldest ships.
“This was a choice between a foreign bid or no new ferries,” BC Ferries CEO Nicolas Jimenez outlined in his remarks on Friday.
Mr. Jimenez also said his company, which operates independently from the province, is in dire need of new vessels as major route sailings ran last summer at an average 92 per cent capacity.
BC Ferries President and CEO Nicolas Jimenez says the company had to buy Chinese ships as no Canadian companies were available for the job.Adrian Wyld/The Canadian Press
He noted that in 2024, the main propeller fell off the 61-year-old Queen of New Westminster ferry, resulting in about 200 days of repairs, countless travel disruptions and $15-million in costs.
The bank is a federal Crown corporation created in 2017 to support infrastructure projects in Canada. It provides loans at below-market interest rates. Mr. Cory told the committee the bank has made loans of $17-billion across 102 projects in every province and territory. He added that those projects support 235,000 jobs across Canada.
That includes the BC Ferries loan agreement, made in March, which the bank announced later in June, following questions from The Globe and Mail.
Mr. Cory said the bank began talking to BC Ferries last September. Without bank loans, the service would have faced the challenge of increasing fares, delaying investments in new vessels or decreasing services.
He said it’s not the bank’s role to tell its clients how they can best source what they need.
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Earlier Friday, federal Transport Minister Chrystia Freeland said she was dismayed by the ferry operator’s decision to buy ships from China.
“I do share the committee’s disappointment with this procurement,” she said. “In fact, I think there is widespread disappointment across Canada with this procurement.”
Ms. Freeland noted it is critical to support the steel and aluminum sectors in Canada given the tariffs imposed by the United States.
She repeatedly told committee members she had asked all organizations under Transport Canada – including ports, airports and marine services – to prioritize Canadian content in their big purchases, notably Canadian steel and aluminum, to the extent possible. Ms. Freeland said she had sent 71 letters containing the directive.
She added that Transport Canada will be convening a meeting with the provinces and territories, as well as ferry owners, operators, shipyards, labor representatives, and the steel and aluminum industry to talk about how to better work together on buying Canadian options. She promised a similar meeting for the rail industry.
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But neither Ms. Freeland nor Housing and Infrastructure Minister Gregor Robertson, who also appeared Friday, would commit to scrapping the loan.
They said that the bank is an independent organization.
Ms. Freeland noted that under a 1977 agreement, her department provides $38-million annually that is used for operational support for BC Ferries.
Minister of Housing and Infrastructure Gregor Robertson speaks with Minister of Transport and Internal Trade Chrystia Freeland between appearances at Friday's session.Adrian Wyld/The Canadian Press
Mr. Robertson, a former Vancouver mayor, said there is an urgent need for BC Ferries to upgrade its fleet. The new ships from China will go into service between 2029 and 2031.
“This is support that is desperately needed,” he said, referring to the infrastructure bank loan.
“As a British Columbian, I will strongly reinforce that piece. The aging ferries threaten the commutes, the accessibility to local communities. Residents and visitors should be able to count on safe, reliable, affordable passage across the region,” he said.
Editor’s note: This article has been updated to correct the spelling of the first name of BC Ferries CEO Nicolas Jimenez.