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The recent announcement from B.C. Ferries about acquiring four new vessels from a Chinese shipyard has sparked a lively debate about our domestic shipbuilding capabilities and the potential economic impacts on British Columbia. Eric McNeely, president of the B.C.
Ferry Marine Workers’ Union, is making a strong case for building these ferries right here in Canada. Why? Because he believes that investing in local shipbuilding is key to preserving jobs and boosting the Canadian economy.
Market Dynamics and Political Context
B.C. Ferries’ decision to source vessels from China Merchants Industry Weihai Shipyards (CMI Weihai) has raised eyebrows throughout the maritime community and ignited a political firestorm. This spring, the ferry company defended its choice by pointing to the lack of bids from Canadian shipyards, along with the significant cost savings—around $1.2 billion less than bids from European competitors.
But this decision comes at a time when trade dynamics are under more scrutiny than ever, particularly with the ongoing global trade war and a growing ‘buy Canadian’ movement. It makes you wonder: is saving money worth the potential cost to local jobs?
Seaspan, a B.C.-based shipbuilder, has revealed that it’s currently tied up with federal contracts to build vessels for the Coast Guard and navy, which may limit its ability to take on more projects.
They also pointed out that without financial incentives from BC Ferries, the higher costs of domestic labor make it tough for Canadian shipbuilders to compete with overseas prices. McNeely acknowledges that while producing these ferries in Canada might come with higher upfront costs, the long-term benefits for the local economy—keeping billions of dollars in labor and materials within our borders—are hard to ignore.
The Economic Impact of Building Locally
But McNeely’s argument goes deeper than just immediate financial numbers. He warns that outsourcing shipbuilding could lead to extra costs and delays in maintenance. Imagine needing repairs and having to wait for parts or expertise from overseas—this could seriously disrupt BC Ferries’ operations.
By investing in local shipbuilding, the company could create lasting opportunities in trades and strengthen post-secondary training programs, ultimately enhancing the skills of our local workforce.
McNeely also highlights the strategic importance of maintaining our domestic shipbuilding capacity. He cautions that if Canada keeps depending on foreign suppliers, we could be undermining our own industrial strategy, risking our influence in negotiations with international builders. This isn’t just about procuring new ferries; it’s about Canada’s sovereignty and long-term economic resilience. Isn’t it time we thought critically about where our investments go?
Ongoing Controversy and Future Implications
Despite the reasoning laid out by BC Ferries, the decision has faced significant backlash from various government officials and opposition figures. The federal parliamentary Transport Committee has launched an investigation into a $1 billion loan from the Canada Infrastructure Bank that relates to this project. Even Federal Transport Minister Chrystia Freeland has voiced her concerns about the deal with CMI Weihai, reflecting widespread unease about the implications of foreign procurement on Canadian industry.
In light of these developments, the B.C. Ferry Marine Workers’ Union has kicked off a campaign called “build them here,” pushing for public officials to prioritize domestic shipbuilding initiatives. McNeely is adamant that public funds should be aimed at creating Canadian jobs and nurturing the local industry. On the other hand, BC Ferries has stated that it did engage with Canadian shipbuilders before the procurement process but found the lack of competitive bids to be a limiting factor.
As BC Ferries grapples with an aging fleet, the urgency to acquire new vessels is undeniable. However, the broader ramifications of this procurement decision could have lasting effects on the industry, shaping future policies and attitudes toward domestic manufacturing and labor practices. What will this mean for the future of our shipbuilding industry? Only time will tell.
