BC NDP ignored study proving BC Ferries ships could be built locally
Despite the B.C. NDP government’s denials, a recently uncovered report reveals that local shipyards were capable of building BC Ferries’ new vessels two years ago.
Despite the B.C. NDP government’s denials, a recently uncovered report reveals that local shipyards were capable of building BC Ferries’ new vessels two years ago.
CHEK News obtained a report commissioned by North-Vancouver based shipyard Seaspan back in 2023 and given to the provincial government stating that local shipyards could have built at least some what is needed by BC Ferries’ domestically.
A report by Shirocca Consulting found thousands of jobs and billions in economic revenue could have been generated in B.C. if BC Ferries had accepted a plan to phase in the local construction of seven new C-class major vessels.
However, this would have required BC Ferries and the government to place quotas on Canadian procurement.
“(BC Ferries) do not specify targets or percentages for B.C. or Canadian content. This places domestic shipbuilders at a competitive disadvantage as foreign labour rates are significantly lower,” reads the report.
“While this approach may yield a lower cost in the narrowest sense, it overlooks the employment, wage earnings, and contributions to B.C. and Canada’s economies and GDP, that could result from domestic participation.”
The report outlined projected economic benefits for the province, including $121-234 million in additional tax revenue and 2,500-5,800 direct jobs from Seaspan.
The report was allegedly ignored by the BC NDP government, which later claimed to be disappointed BC Ferries awarded the contract to a state-owned Chinese shipyard in June.
The Shirocca report also presented two other scenarios for Seaspan to be a viable option for BC Ferries: outfitting foreign-built ships in Canada or phasing in the construction of seven BC Ferries ships over nine years, allowing roughly half to be entirely built by B.C. workers.
Under the phased plan, the first ship would have been built by a foreign shipyard and then outfitted in B.C., with the second and third partially built in B.C. The remaining three ships would be fully built domestically.
This approach would have created 9,800 direct and indirect jobs and injected $1.1 billion into the B.C. economy over that period. Additionally, it could have generated $234 million in tax revenue for the B.C. government, exceeding the province’s annual operating subsidy for BC Ferries.
The latest report further corroborates that many politicians were aware of the contract award to the PRC-backed China Merchants Industry Weihai Shipyards before it became public, but later claimed to be blindsided by the deal.
Matters were made worse when it became apparent that the financing for constructing the four new vessels would come from taxpayers in the form of a $1 billion low-interest loan from the Canada Infrastructure Bank.
 | A guest post by
|
Taking the "lowest global bid" on anything is a perfectly one-dimensional decision and should automatically be distrusted.
I was an Ottawa resident at the time a "lowest bid" contact for Light Rail Transit was force-fed to us by the combination of a Liberal mayor, Doug Ford, and mostly Justin Trudeau. That contract was awarded to SNC Lavelin (one of Trudeau and the Liberal's main piggy banks). The terms of the contract would probably be classified as criminal in any other modern country. With zero checks and balances, SNC followed its standard practice of commissioning the cheapest, least reliable sub contractors available, and buying the cheapest, least reliable, Tinker Toy trains on the market. Lavelin has no core competencies of their own, they are middle-men only.
As one quick example of many, these trains have been beset by "Square Wheel Syndrome" from day one. I am not making that term up. That is the Municipal government's excuse for the relentless breakdowns. For a complete understanding of the comic-farce aspect of this system, a pre-contract study of an identical LRT system was required. That study was conducted in Houston, Texas. Houston winter? Ottawa winter? That should require no comment. Talk about 'gilding the lily'.
Needless to say - but I will - the system has been an unmitigated, relentless disaster from concept, to planning, to installation and operation, from Day One. And the euphemistic "cost over runs" - which seem to be automatic and expected in any major infrastructure project in Canada - are staggering.
This is the type of thing you get from "low bidder" projects. It's alright if you accept the low bid on something like a bus, or a small building, or a toaster oven, but not major infrastructure items. These require serious, professional research, and should be kept out of the hands of politicians.
The farce called " Team Canada ", continues to prove itself as nothing but more virtue signalling with BC and the hallowed province at the center of it.