BC Ferries approved to order four new major vessels, instead of five
For years, BC Ferries had planned to purchase seven new major vessels, but the original procurement timeline was delayed by the pandemic. In October 2024, as part of its application to the commissioner, the ferry corporation announced a phased approach: it would first order five new vessels to enter service between 2029 and 2031, followed by the remaining two vessels, expected to enter service around 2037.
By its own admission, BC Ferries stated at the time that a phased order — five vessels initially and two at a later date — would help spread the significant costs over a longer period, provide more reliable service and increased capacity in the medium term, and reduce upward pressure on fares.
However, the commissioner has now determined that even five vessels for the initial order is too many. In her explanation for only approving four initial vessels, Commissioner Eva Hage says the fifth vessel would financially burden BC Ferries at this time.
“Replacing the four legacy ferries will mean a much-needed increase in capacity and reliability,” said Hage in a statement today.
“A fifth vessel, however, is neither essential nor affordable at this time, and approving it would be fiscally irresponsible. It would put even more upward pressure on fares, place an even greater burden on taxpayers, and may lead to unsustainable debt levels at BC Ferries.”
Preliminary conceptual artistic rendering of the New Major Vessels. (BC Ferries)
In her written decision, Hage noted that the fifth vessel proposed by the ferry corporation for the first phase would serve as a relief vessel in off-peak periods for Route 1 and provide additional service on Route 1 during peak periods. Route 1 is the busiest route between Tsawwassen and Swartz Bay.
For this reason, according to the commissioner, this fifth vessel is not essential at this time.
It is indicated that the first four vessels would serve to replace three of the oldest C-class ships built in the 1970s — Queen of Alberni, Queen of Coquitlam, and Queen of Cowichan — and the 1964-built Queen of New Westminster.
The new vessels would have a capacity for 2,100 passengers and crew, 360 vehicles, and a displacement of 11,800 tonnes. In contrast, the Spirit of British Columbia and Spirit of Vancouver Island, the fleet’s existing largest vessels, have a similar capacity for 2,100 passengers, 358 vehicles, and a displacement of 11,640 tonnes. These new vessels would essentially be the same size as the Spirit-class vessels, if not slightly larger.
Furthermore, these new vessels will be diesel-battery hybrid ships, with capabilities for all-electric conversion at a later date.
Compared to the aging vessels being retired, the first four new vessels would increase vehicle capacity by 12 per cent and passenger capacity by 18 per cent on Route 1. On Route 30, which runs between Tsawwassen and Duke Point in Nanaimo, vehicle capacity would rise by 17 per cent, while passenger capacity would increase by 50 per cent.
If the fifth vessel were also ordered, capacity on Route 1 would further go up by 40 per cent on vehicles and 47 per cent for passengers.
Preliminary conceptual artistic rendering of the New Major Vessels. (BC Ferries)
In its rationale for the inclusion of a fifth vessel in the phase one order, BC Ferries has highlighted that this additional ship is needed to meet ridership growth on the busiest routes over the coming years.
In August 2024, Route 1 saw its demand use 96 per cent of capacity, while the average capacity utilization for the other three major routes reached over 90 per cent. The ferry corporation estimates that vehicle traffic on the major routes will grow by 15 per cent over the next 10 years.
However, the fifth vessel would require the construction of a lay-by berth for the Tsawwassen ferry terminal, which is currently not included in the capital costs.
The cost estimates for the new vessels and the associated changes to BC Ferries’ debt levels and equity have not been publicly released. However, these vessels are expected to be the largest capital project ever pursued by BC Ferries, with shipbuilding costs escalating significantly globally in recent years following the pandemic.
Overall, the major routes are now operating near capacity in the months of July and August. All the while, these major routes generate over 82 per cent of all fare revenue on the entire BC Ferries network.
The ferry corporation also asserts there is unserved, latent demand during peak periods due to capacity issues, with many sailings fully booked days in advance in the summer.
There has been no major change to the capacity or service levels of these major routes for about 30 years since the Spirit-class vessels entered service.
More information will be added to this article following BC Ferries’ media availability this afternoon in response to the commissioner’s decision.
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