Canada Infrastructure Bank Loans $1B to BC Ferries for Chinese-Built Vessels

The Canada Infrastructure Bank (CIB), a federal Crown corporation, is providing BC Ferries with a $1 billion low-cost loan to purchase four new hybrid battery-electric vessels from China Merchants Industry Weihai Shipyards, a Chinese state-owned shipyard. This loan includes up to $690 million for the vessels and $310 million for terminal electrification infrastructure, enabling future all-electric operations. The decision to award the contract to a Chinese shipyard has sparked significant criticism from federal and provincial politicians, including Transport Minister Chrystia Freeland, who expressed disappointment and raised concerns about China's tariffs on Canadian goods and cybersecurity risks. BC Ferries defended the decision, citing a stronger bid from the Chinese shipyard after a five-year procurement process, and noted that the new vessels will replace aging ferries and increase passenger and vehicle capacity substantially. Despite political pushback, the CIB emphasized that the low-cost financing is essential to modernize the ferry fleet and reduce future fare increases. The loan is expected to save BC Ferries about $650 million in interest charges, helping support the company’s operational, environmental, and financial goals.