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BC Ferries urged to incentivize use of B.C. content in its new vessels

Seaspan says Canadian shipyards and their supply chains cannot compete with low wage countries
bc-ferries-news-boats
A conceptual render of a new ferry under BC Ferries' new major vessels program (NVM).

Seaspan Shipyards, B.C.’s biggest shipbuilder, is calling on the provincial government to seize the opportunity to build some of BC Ferries' new vessels here at home to help create high-value jobs and economic benefits for British Columbians.

On Sept. 16, the transport company formally announced the release of a request for proposal for their New Major Vessel (NMV) program where pre-qualified shipyards were invited to participate.

Seaspan assessed the competition for the company's NMV program and concluded it does not support the opportunity for the B.C. maritime sector to generate the significant socio-economic benefits associated with capital projects of this size.

In a press release, BC Ferries cited cost as a primary issue so much so that no bidder will be incentivized to include significant Canadian/B.C. domestic content in their bids.

Seaspan noted Canadian shipyards and their supply chains cannot compete with low wage countries that have lower employment standards, lower environmental  and safety standards than Canada and B.C.

They also said the most significant difference is that in B.C. the wages paid to skilled trades workforce are substantially higher than in those other countries.

The shipbuilder has commissioned independent economic studies that show substantial return on investment for the B.C. government to support building the NMVs in the province.They cited other provinces in Canada (particularly Quebec) who are supporting their shipyards aggressively by requiring domestic build and providing tax credits, forgivable loans and grants well in excess of $1 billion to their shipyards. This contributes to a significant competitive disadvantage for B.C. shipyards and workers.

Seaspan acknowledges the need for BC Ferries to get some of these replacement vessels very fast given their aging fleet and as such will continue to make the case to the B.C. government to strategically build ferries in the province.