20 organizations urge B.C. government to enable order of five new ferries | Daily Hive

20 business and tourism organizations urge B.C. government to enable order of five new ferries

Not the actual design; 2022 previous highly preliminary conceptual design of BC Ferries' new major vessels. (LMG Marin/BC Ferries)

Earlier this spring, the independent commissioner that oversees BC Ferries rejected the ferry corporation’s application to buy five new major vessels to serve the busy major routes linking Metro Vancouver with Vancouver Island and the Sunshine Coast.

Instead, commissioner Eva Hage approved an order of four new major vessels to replace aging C-class vessels, deeming a new fifth additional vessel — the 12th major vessel for the entire fleet — not necessary.

BC Ferries had planned on using the fifth ship to increase capacity, particularly on the busiest route of Tsawwassen-Swartz Bay (Victoria), while also serving as a spare/relief vessel for the various major routes, such as vessel breakdowns and planned maintenance. This would greatly improve the reliability and resilience of the services.

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The new vessels are scheduled to arrive between 2029 and 2031, with BC Ferries expected to award the construction contract to a shipyard in June 2025.

The ferry corporation has cautioned that without the inclusion of a fifth vessel, major routes could face a capacity crisis by the early 2030s. The current decision defers any further major vessel orders to the latter half of the 2030s. In 2024, capacity issues became highly apparent during the peak season periods.

The fifth new vessel rejection follows nearly 200-day withdrawal of the aging Queen of New Westminster ship, which impacted the maintenance and service schedules of other vessels. Furthermore, over the past week, a mechanical issue with the Queen of Coquitlam vessel left passengers stranded for hours. If a spare vessel had been available, it could have been deployed to ensure service continuity on the major Horseshoe Bay-Langdale (Sunshine Coast) route.

However, a total of 20 organizations are now calling on Premier David Eby to direct the provincial government to intervene in the decision by the commissioner, who is technically independent of BC Ferries and the government. This includes 15 business and economic organizations and five tourism organizations.

2024 preliminary conceptual artistic rendering of the New Major Vessels. (BC Ferries)

In a new letter to Eby on behalf of the 20 organizations, Bruce Williams, the CEO of the Greater Victoria Chamber of Commerce, called for the provincial government to support BC Ferries’ original request for five new ships.

“We feel the decision by the commissioner was not prudent in consideration of multiple factors. BC Ferries’ fleet is already operating at capacity with consecutive years of record-setting passenger volumes being challenged by the issues of an aging fleet,” wrote Williams.

“The long-term reliability of the fleet and affordability of repairs and maintenance present an ongoing threat to a reliable supply chain, economic growth and the visitor economy. To delay the acquisition of a fifth vessel simply defers the cost of that build, which will unquestionably be higher at a later time. The costs to repair aging vessels and the loss of revenue and impact to customers due to service disruptions is not acceptable or sustainable.”

In her written decision, Hage cited the need for higher fares, increased provincial funding, and the impact on BC Ferries’ financial performance as key factors behind her ruling. She also characterized the ferry corporation’s ridership growth projections — used to justify concerns about future overcapacity — as overly optimistic.

BC Ferries strongly argued that, from a long-term and economies-of-scale perspective, ordering five vessels now — rather than four — would be more cost-effective, particularly in light of high inflation across the global shipbuilding sector. The ferry company also highlighted the broader economic, supply chain, and tourism benefits of a fifth vessel, as well as the added capacity it would provide on its most profitable routes, which would help subsidize the operating costs of lower-ridership minor routes.

“While affordability has been positioned as a guiding principle in the commission’s decision, there is no definition of ‘affordability’ in the commissioner’s legislation. This creates a challenge when attempting to fully consider and meet the needs of businesses, taxpayers, the tourism industry and our supply chain,” continued Williams.

“Affordability is about more than just fares and yet there’s nothing that requires the commissioner to apply that lens. For example, there’s no requirement or indication that the risk of negative economic, supply chain and tourism impacts to B.C. residents and businesses were considered in the decision to reject a fifth vessel.”

The commissioner’s decision did not consider the economic and tourism benefits of a fifth vessel, despite BC Ferries serving as the primary transportation link between Vancouver Island and other coastal communities — essentially the continuous segments of the provincial highway system.

Under provincial legislation, the commissioner only has a mandate to consider fare affordability, traffic demand, the ferry corporation’s financial performance, and corporate risk. Williams suggests legislation should be amended to provide the commissioner with a mandate to consider a broader range of factors.

The commissioner oversees key decisions, such as the final approval for BC Ferries’ requests for fare increases, fuel surcharges/discounts, major capital projects such as new vessel orders and terminal upgrades, and long-term capital plans.

“In this time of significant uncertainty, we agree with government that we should be investing more — not less — in growing our local economy and supporting and encouraging businesses and tourism. This decision does the opposite,” wrote Williams in his letter to Eby.

“We would encourage the Province to take whatever steps it can to better articulate its expectations to the commissioner in the future, including by establishing a clear legislated definition of affordability that meets the expectations of all British Columbians.”

BC Ferries

The 20 organizations represented in his letter also include Destination Greater Victoria, Tourism Industry Association of BC, Tourism Nanaimo, Tourism Tofino, and Parksville-Qualicum Tourism Association, as well as Greater Nanaimo Chamber of Commerce, Tofino-Long Beach Chamber of Commerce, Comox Valley Chamber, Ladysmith Chamber of Commerce, Ucluelet Chamber of Commerce, Alberni Valley Chamber of Commerce, Qualicum Beach Chamber of Commerce, Sooke Region Chamber of Commerce, Cowichan Lake District Chamber of Commerce, Mayne Island Chamber of Commerce, Campbell River Chamber of Commerce, Port Hardy Chamber of Commerce, Chemainus Chamber of Commerce, and WestShore Chamber of Commerce.

Although BC Ferries has not released the estimated cost of the order, this is expected to be the single most expensive capital project in the history of the coastal ferry network. These vessels also carry a cost premium for being hybrid diesel-electric ships with extensive battery capacity.

The new vessels will be comparable in size to BC Ferries’ largest existing ships — the Spirit of British Columbia and Spirit of Vancouver Island — and may even be slightly larger.

This next-generation class of major vessels will have a capacity of 2,100 passengers and crew, as well as 360 vehicles, with a displacement of 11,800 tonnes. By comparison, the aging C-class vessels they will replace, built in the late 1970s and early 1980s, can accommodate approximately 1,500 passengers and crew, as well as 300 vehicles, with a displacement of around 6,500 tonnes.

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