Opening Statement to the House of Commons Standing Committee on Transport, Infrastructure and Communities

VICTORIA, BC -  BC Ferries President and CEO Nicolas Jimenez appeared today before the House of Commons Standing Committee on Transport, Infrastructure and Communities (TRAN), which is currently studying the Canada Infrastructure Bank’s financing of new vessels for BC Ferries. The full opening statement, as delivered at the committee’s August 1, 2025 meeting, is included below.

For the last 60 years, BC Ferries has been an essential public service for British Columbians. Last year alone, we transported almost 23 million customers – our third record-setting year in a row. We are a private company that operates provincially under independent regulatory oversight, with a legislated mandate to serve the public interest.

We are a foundational part of the provincial and national supply chain, a critical part of the tourism industry, and BC’s marine highway, moving about $8 billion in goods annually.

Our customers and communities need safe, reliable and affordable service, and my role as CEO is to deliver on that promise.

Today, our system is at capacity:

• Last summer, our major route sailings ran at an average 92% capacity, and we left a quarter of a million people behind because we were full.
• Only one of our 25 routes can cover its own costs without government subsidy.
• Only one of our 25 routes can cover its own costs.
• Travel demand is projected to rise by 15% – outpacing our capacity even with four new vessels.
• And much of our capital infrastructure is old:
  • Many of our ferries are well past their vessel design lifespan.
  • More than half of our terminals need significant investment to keep operating safely.

In 2024 the propeller fell off our 61-year-old Queen of New Westminster, resulting in almost 200 days of repairs, countless travel disruptions, and cost BC Ferries about $15m.

We expect our operating losses will continue to grow with inflation and, simply to maintain today’s service levels, we also expect that British Columbians could see their fares increase dramatically.

We don’t have the luxury, the flexibility or the mandate to over-spend.

To replace our four oldest ships, we conducted an open and competitive procurement process, independent of political interference and aligned with international best practice. In fact, we adjusted the qualifications specifically to enable Canadian shipyards to qualify. Despite two Canadian shipyards then being prequalified, neither chose to formally submit a proposal.

Of the six compliant bids that we did receive, all were from foreign countries. We chose the proposal that offered the best combination of value, quality, delivery timelines and protections for our customers.

And throughout the build, we’ll have a team of Canadian experts onsite in China to ensure high standards of quality, safety and security.

Canadian companies have made the same decision, building almost 100 ships in China over the last decade, including the newest vessel for Marine Atlantic – a federal Crown corporation – which came from this same shipyard.

To summarize:

• There were no Canadian bids. This was a choice between a foreign bid or no new ferries.
• Going with another foreign proposal would have cost up to an extra $1.2 billion, resulting in significant and unnecessary increases to passenger fares
• Even if there had been a Canadian bid, it too would have cost more and those ships would have taken up to a decade longer to build – during which time our customers would pay the price with increasing breakdowns of our old vessels.
• Finally, financing this project privately would have cost up to $650 million more in unnecessary interest – yet another unaffordable fare increase that our customers would have to bear.

None of these would be acceptable outcomes for our company or for our customers. Whether you live on Vancouver Island - in Powell River, Nanaimo or Langford - on the lower mainland - in Maple Ridge, Abbotsford or Langley - or frankly anywhere else in BC where taxpayers help support our marine highway, cost of living is a major consideration and our mandate is to provide a service that is as affordable and reliable as possible.

Regarding the Canada Infrastructure Bank, this current loan includes up to $690 million for vessels and $310 million for electrification of our terminals to deliver cleaner, more climate-friendly travel in the future.

And to be clear, this is a loan that is received by BC Ferries – not China – and will be repaid with interest by BC Ferries.

British Columbians desperately need safe, affordable, reliable new ships to keep them and our economy moving. Our decisions have saved customers and British Columbians unaffordable, unnecessary fare increases and I’m proud we were able to deliver for them.