Seaspan — owner of B.C.’s largest shipyards — says it would like to bid on upcoming B.C. Ferries contracts for major vessels, but it’s impossible unless the province provides incentives to shipbuilders.
In a Thursday statement with the headline “B.C. ferries will not be built in B.C.,” the company notes that other provinces, such as Quebec, support their shipyards by requiring vessels to be built domestically and providing tax credits, forgivable loans and grants surpassing $1 billion.
“This contributes to a significant competitive disadvantage for B.C. shipyards and workers.”
Canadian shipyards are also up against tough global competition, since they can’t compete with low-wage countries that have lower employment, environmental and safety standards, Seaspan said. “In B.C. the wages that we pay our skilled trades workforce are substantially higher than in these other countries.”
Yards in Victoria or Vancouver once turned out large and small ferries for B.C. Ferries’ fleet, but in recent years, those contracts have been going to shipyards operating in Europe, including in Germany, Poland and Romania. It’s not uncommon for international yards to receive support from their respective governments.
With B.C. Ferries hoping to order seven new major vessels, the province should “seize the opportunity” to ensure some are built in B.C., and “generate the significant socio-economic benefits with capital projects of this size,” the company said. Seaspan said it would like to participate in building some of the new vessels, especially the final two.
It’s currently building non-combat vessels for the Canadian navy and coast guard in North Vancouver, contracts that prompted the company to spend hundreds of millions of dollars to modernize its facilities.
Seaspan said it commissioned an independent economic study that showed a substantial return on investment for the B.C. government if it supported building major vessels in B.C.
It said it has the capability to build vessels of the size required at its North Vancouver yard.
B.C.’s shipbuilding sector would provide steady long-term jobs, plus income-tax revenues and other economic benefits, said the company, which owns Vancouver Shipyards and Vancouver Shipyards in North Vancouver as well as Victoria Shipyards, which operates out of the federal graving dock in Esquimalt.
Other B.C. shipyards have said challenges that get in the way of getting contracts include paying for upgrading of older yards, limited size of facilities, and lack of access to trained workers. They also echo Seaspan’s points about lack of government incentives and stiff offshore competition.
Jeff Groot, B.C. Ferries’ executive director of communications, said B.C. Ferries needs to provide high-quality vessels without having to increase fares for the sake of building locally.
The company is committed to choosing a proposal reflecting its priorities, factoring in cost, environmental impact, timelines and performance, he said. “We encourage all pre-qualified shipyards to submit their most competitive proposals.”
It is premature to speculate about where the vessels will be built, he said. “Our competitive process is designed to select the shipyard that best meets B.C. Ferries’ technical, financial, and operational needs, while keeping customer priorities at the forefront.”
Customers say affordability and reliability are their top concerns, Groot said.
The company remains committed to supporting the local economy, contributing $15 million annually to local shipyards like Seaspan and allocating $60 million per year for fleet maintenance in B.C., he said.
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