Federal Transport Minister Freeland slams B.C. Ferries deal with Chinese company

B.C. Ferries Faces Backlash for Chinese Shipyard Contract

B.C. Ferries has recently come under fire from federal Transport Minister Chrystia Freeland for its decision to award a contract to a Chinese state-owned shipyard to build four new vessels for its passenger fleet. In a scathing letter addressed to B.C.’s Transportation Minister Mike Farnworth, Freeland expressed her concerns about the security risks associated with the contract.

Freeland’s letter, released on Friday afternoon, expressed her “great consternation and disappointment” with the ferry operator’s choice of a Chinese shipyard in the current geopolitical climate. She highlighted the absence of Canadian companies in the bidding process, despite the significant taxpayer money allocated to B.C. Ferries.

The winning bidder for the contract, China Merchants Industry Weihai Shipyards, raised eyebrows as no Canadian companies participated in the bid. Freeland emphasized the need for Canadian involvement in such projects, especially given the trade tensions between Canada and China, including unjustified tariffs on Canadian goods.

Freeland urged provincial authorities to address potential security threats, including cybersecurity, and ensure that B.C. Ferries takes necessary measures to mitigate risks related to vessel maintenance and spare parts. She called for a robust risk assessment and collaboration with relevant security agencies to safeguard against any potential threats.

The federal government has a history of providing financial support to B.C. Ferries, with a recent subsidy of $37.8 million in 2025-26 and a $75-million loan from the Canada Infrastructure Bank for zero-emission ferries. Freeland requested confirmation that no federal funding would be used for the new vessels.

In response to the criticism, B.C. Ferries’ executive director of communications, Jeff Groot, defended the decision, stating that Weihai Shipyards was chosen through a rigorous and transparent procurement process. He emphasized the global capacity constraints for complex passenger ferries and highlighted the track record of Canadian companies acquiring vessels from Chinese shipyards.

Groot reassured that B.C. Ferries has been working closely with Transport Canada and Public Safety Canada on safety and security measures. He mentioned plans to source sensitive systems separately, with independent certification before the vessels enter service. Additionally, all IT networks will be procured from within Canada and installed by B.C. Ferries’ personnel.

Despite the backlash, B.C. Ferries remains committed to overseeing the construction process, with a dedicated oversight team at the shipyard. The Ministry of Transportation in B.C. is currently reviewing Freeland’s concerns, as the controversy surrounding the Chinese shipyard contract continues to unfold.