Canada Transport Minister Freeland 'dismayed' by BC Ferries deal with Chinese company

Canada's transport minister says she is "dismayed" that BC Ferries contracted a Chinese state-owned shipyard to build four new vessels in the current geopolitical context that includes "unjustified" tariffs on Canada.

Chrystia Freeland, in a letter to her BC counterpart Mike Farnworth, said she expects BC Ferries to inform her of all measures it plans to take to "mitigate any security risks," including cybersecurity problems that might arise.

BC Ferries announced this month it had contracted China Merchants Industry Weihai Shipyards to build four new major vessels, following a five-year procurement process that did not include a Canadian bid.

In her letter, Freeland said she was surprised BC Ferries does not have a mandate for an "appropriate level" of Canadian procurement, given the value of the contract, although the dollar figure hasn't been made public.

A statement from Farnworth's ministry said it was reviewing the letter, adding that Farnworth had spoken with Freeland about bolstering BC's shipbuilding industry.

BC Ferries, in a statement, said the Chinese bid was the strongest by a "significant margin" and that security was a top priority and added all sensitive systems would be sourced separately and independently certified before the vessels enter service.

Farnworth's comments echo those of BC Premier David Eby, who has promised to work with Ottawa to build up capacities in BC for future vessels.

Eby has also said the province wouldn't interfere in BC Ferries' decision, citing the needs of coastal communities and BC Ferries' operational independence.

BC Ferries is an independent company, with the province being its sole shareholder.

Freeland said she expects "assurances" that BC Ferries conducts a "robust risk assessment" and that it engages with the relevant federal and provincial security agencies and departments.

The letter also asks B.C. to "verify and confirm with utmost certainty" that no federal funding will be diverted to support the purchase of these new ferries.

Freeland said the federal government has a long record of providing financial support to BC ferries, including a federal subsidy of $37.8 million in 2025-26, dating back to a 1977 agreement.

Other forms of federal financial support have included $308 million to cover operational losses caused by COVID-19 and to limit average fare increases, Freeland said.

She added that the Canada Infrastructure Bank has given BC Ferries a loan of $75 million to help purchase four net-zero emission ferries and install the necessary infrastructure.

The existence of Freeland's letter came to light earlier this week during Question Period in the House of Commons, when she faced questions about the BC Ferries' purchase from BC MP Dan Albas.

"(I) share the concern and anger of other member of this House about the purchase of Chinese ferries," Freeland said during debate.

"I have written to the Province of BC to make it clear that the federal government's support for BC Ferries, which is explicitly for operating support, must not be used for anything other than the operation of ferries."