B.C. Ferries is planning to add seven major diesel-electric hybrid vessels to its fleet and upgrade the Queen of Oak Bay and Queen of Surrey to extend their life, in what will be the company’s largest vessel expenditure in its history.
It aims to order five major vessels initially, with the first to be delivered by 2029 and the other four to be in service by 2031. The second phase would see the final two major vessels added by about 2037.
The company did not release the expected cost but in 2018, when B.C. Ferries initially announced plans to order five major vessels, the cost was estimated to be $700 million to $1 billion. That building project was sidelined by the pandemic.
B.C. Ferries earlier put out a call for qualified shipyards to build the vessels. Its pre-qualified list includes a total of about 20 companies, including local, national and international firms, B.C. Ferries president Nicolas Jimenez said Monday.
A request for proposals to design and build the major-vessel class of ferries was issued on Monday.
Before any contracts can be signed, the company needs approval from B.C. Ferries Commissioner Eva Hage, who has 60 days to respond.
A formal application is expected to be submitted to Hage in early November, Jimenez said.
Shipyards that have expressed interest have just been notified, he said. “We need essentially to receive the bids and get a sense of whether our assessment of the market is accurate or not.”
Jimenez doesn’t expect all the shipyards on the pre-qualified list to submit bids, saying the number coming in will likely be “considerably less,” since not every shipyard has the capacity to build five new major vessels.
B.C. Ferries is also asking bidding shipyards to identify their submission’s value to the Canadian economy.
Jimenez hopes the successful yard will be chosen in January. It will then take a couple of months to negotiate the contract, he said, since it’s a highly complex and detailed process.
Adopting a phased strategy for shipbuilding will allow the company to minimize fare pressure for customers and refine the final two vessels based on insights from the initial builds and operational performance, he said.
Each major vessel will be able to carry 2,100 passengers and crew, plus 360 standard-sized vehicles, similar to the two Spirit-class vessels now in service.
B.C. Ferries said the new ferries will be among the largest double-ended ferries in the world, with significantly improved energy efficiency and propulsion systems designed for both future flexibility and environmentally sustainable operations.
New major vessels have been designed in consultation with LMG Marin, a naval architecture and ship design firm.
They will replace retiring vessels, including the Queen of Alberni in October 2029, Queen of Coquitlam in September 2030, the Queen of New Westminster in October 2030 and the Queen of Cowichan in October 2031.
Following their upgrades, B.C. Ferries anticipates the Queen of Surrey and Queen of Oak Bay would retire after 2035.
Ed Hooper, B.C. Ferries executive director of shipbuilding, said the new vessels will help reduce wait times at terminals. Adding another ship to the fleet will bring the total to 12 vessels on B.C. Ferries’ major routes, “helping us keep pace with customer demand and projected population growth along the coast.”
The new vessels will be quieter and cleaner than the vessels they replace, “allowing us to achieve a significant reduction in our corporate greenhouse gas emissions.”
They will run on biofuel and renewable diesel initially, with space allocated to fully convert them to battery-electric ships when the infrastructure is in place for electric vessels, the company said.
Using biofuel and renewable diesel allows B.C. Ferries to minimize emissions right away, Jimenez said.
The company has been talking to the Canada Infrastructure Bank, which invests in green initiatives, about its plan. The bank previously loaned the company $75 million for four new electric Island-class ferries and related infrastructure.
Reliability has been a major issue for B.C. Ferries.
The summer of 2023 saw thousands of passengers’ plans disrupted after engine problems arose with Coastal-class ferries.
Recently, the Queen of New Westminster was pulled from service after one of its 10,000-pound propellers broke off and sank to the sea floor when it sailed out of Tsawwassen at the start of this month.
It’s now expected to be out of service for repairs for at least six months.
B.C. Ferries noted that its vessels carried more than eight million passengers and more than three million vehicles between June 1 and Aug. 31 of this year.
It said without new vessels, demand will exceed capacity on major routes by 2035, which means longer ferry waits.
Hage will be asking for public comments about the proposal, and her office will ask consultants to help review the application “because it is generally very technical.”
The review looks at criteria the office must examine under the Coastal Ferry Act when considering capital expenditures of more than $50 million.
Hage will base her decision on whether B.C. Ferries’ proposal is reasonable, prudent and consistent with the coastal ferry services contract between the province and company.
Provincial legislation requires a response within 60 days, but does not require a decision within that time.
Hage said the goal is to make a decision within the 60-day period, however. “We recognize they need some certainty with the market.”
For several years, B.C. Ferries has been moving toward standard designs for specific classes of ferries, such as its smaller Island and Salish-class vessels, saying that allows the company to move vessels between routes for maintenance or refits without disrupting customer travel.
Existing major vessels include the three Coastal-class ferries, the two Spirit-class ferries and the Queen of New Westminster, which is a Victoria-class ferry.
Most recently, ferries have have been built in Germany, Romania and Poland.
The last time a B.C. shipyard turned out major vessels for B.C. Ferries was when the Spirit of British Columbia and the Spirit of Vancouver Island were built in 1993 and 1994 in two parts, by Allied Shipyards in North Vancouver and Integrated Ferry of Esquimalt.
The three Coastal-class vessels, the Inspiration, Renaissance and Celebration, were constructed in Germany in 2007 and 2008. They can each carry 1,604 passengers and crew and 310 cars. The total cost of constructing those ferries surpassed $500 million.
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