A federal crown corporation is loaning up to $690 million to B.C. Ferries for its order of four Chinese-made vessels, which has been sharply criticized by government leaders, including Transport Minister Chrystia Freeland.
The Canada Infrastructure Bank announced Thursday it would lend B.C. Ferries up to $1 billion towards vessel purchase and terminal upgrades as the ferry company looks to modernize its fleet.
Up to $310 million of that loan is meant to help with electrification infrastructure, the bank said.
The loans, which have a below-market annual interest rate of 1.828 per cent, will come in four tranches, with all funding to be received by 2030, according to publicly available B.C. Ferries documents.
Canada Infrastructure Bank already issued $133 million of the loan to B.C. Ferries on May 22, the documents said.
B.C. Ferries CEO Nicholas Jimenez said the loan will save the ferry company about $650 million in debt interest charges.
“It’s a smart, long-term partnership that advances our operational, environmental, and financial goals,” he said in a statement.
B.C. Ferries’ announcement that it had chosen a Chinese state-owned shipyard, China Merchants Industry Weihai Shipyards, to build its four new major ships quickly drew criticism from both sides of the aisle in the B.C. legislature.
It has also been a topic of concern in Ottawa, with Conservative MPs, including Cowichan-Malahat-Langford MP Jeff Kibble, attacking a decision they say will further weaken Canadian steel and shipbuilding industries.
Dan Albas, the Conservative party’s transport critic, has asked House of Commons transport committee members to convene over the summer break to hear from Freeland and Canada Infrastructure Bank chief executive Ehren Cory for a full review of the loan.
Albas said in an interview Thursday that he was shocked to learn about the loan, and that the government needs to be held accountable for “outsourcing Canadian jobs” through the Canada Infrastructure Bank.
The federal government has contributed to B.C. Ferries operations since 1977. In the 2025-26 fiscal year, it provided $37.8 million in subsidies to the company.
Freeland said during parliamentary debate last week that she has written to her provincial counterpart in B.C. “to make 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,” adding: “I share the concern and anger of other members of this House about the purchase of Chinese ferries.”
In her letter to B.C. Transportation Minister Mike Farnworth, Freeland said she expects B.C. Ferries to inform her of its plans to “mitigate any security risks” associated with building the ferries in China, including possible cybersecurity issues.
B.C. Ferries has previously said all IT networks and vessel systems for the ships will be installed in Canada by local suppliers and that the company has hired help specifically to maintain security measures for vessels.
The province is the sole shareholder of B.C. Ferries, but Premier David Eby maintains he won’t interfere in the company’s decisions, citing the needs of coastal communities and the ferry company’s operational independence.
The new vessels to be built by CMI Weihai, which will be able to carry 2,100 passengers and 360 vehicles, are expected to be in service by 2031.
The cost has not been disclosed — B.C. Ferries has said making the costs public could compromise its ability to get good deals on future procurement.
China Merchants Industry Weihai Shipyards’ parent company China Merchants is a mover and shaker in China’s economy, with sprawling subsidiary operations in transportation, finance and property, though it remains a relatively minor player in the country’s shipbuilding industry.
— with files from Canadian Press and Vancouver Sun
