BC Ferries orders three intermediate class LNG-powered ferries
Following the completion of an extensive competitive bidding process, BC Ferries has awarded Remontowa Shipbuilding S.A. of Gdansk, Poland contracts totaling $165 million to build three new intermediate class vessels, the shipping company said in a press release.
The contracts have been approved by BC Ferries’ Board of Directors, as well as a total project budget of $252 million that includes financing and project management costs that would have been incurred regardless of where the vessels were built. The budget also includes $51 million for Canadian taxes and federal import duties. The total project budget is within the capital envelope set by the BC Ferries Commissioner.
“These are design-build, fixed-price contracts that provide BC Ferries with substantial guarantees related to delivery dates, performance criteria, cost certainty and quality construction,” said Mark Wilson, BC Ferries’ Vice President of Engineering.
Other highlights of the contracts include:
• Remontowa assumes all design, construction and delivery risk
• Guarantees are in place for vessel completion dates
• Favourable payment terms with 80 per cent payment upon vessel completion
• Vessel performance guarantees related to speed, carrying capacity, manoeuvrability and
fuel consumption
• Warranties above industry standard
• Penalties for late delivery
• Refund guarantee
The new intermediate class vessels will be the first vessels in BC Ferries’ fleet to operate as dual-fuel capable using Liquefied Natural Gas (LNG) or diesel fuel for propulsion and power generation.
Two of the new ships will replace the 49-year old Queen of Burnaby, which sails between Comox and Powell River and the 50-year old Queen of Nanaimo, which services the Tsawwassen – Southern Gulf Islands route. The third vessel will augment peak and shoulder
season service on the Southern Gulf Islands route, plus provide refit relief around the fleet. These new 105 metre vessels will accommodate 145 vehicles and 600 passengers.
The first new intermediate class vessel is scheduled to arrive in British Columbia in August 2016, the second in October 2016 and the third in February 2017. Remontowa is responsible for delivering the vessels to Victoria. The first vessel is expected to be in service in the fall of 2016, following extensive crew training and familiarization.
The Gdansk ship repair and shipbuilding yard Remontowa Shipbuilding S.A , which is one of the world’s leading shipyards with state-of-the-art design and production facilities, is a member of the Remontowa Holding capital group specializing in ship design and construction of
new ships, conversions and repairs, offshore units and steel structures. The shipyard was established in 1952 and privatized in 2001.
BC Ferries conducted an extensive competitive bidding process to ensure that the company secured the best bid for its customers and the taxpayers of British Columbia. One shipyard from BC, Seaspan’s Vancouver Shipyard, was among the five shipyards shortlisted and
invited to participate in the RFP process, however they decided to withdraw as they indicated they have maximized their available capacity due to commitments with the federal government building vessels under the National Shipbuilding and Procurement Strategy as well as
constructing BC Ferries’ new cable ferry.
Criteria for shipyard selection included the design and construction plan, recent experience building intermediate ferries, capability of introducing new technology such as LNG, customer satisfaction (references from other customers), delivery schedule, price and payment
terms, financial stability and ability to provide guarantees.
Under contract to the Province of British Columbia, BC Ferries is the service provider responsible for the delivery of safe, efficient and dependable ferry service along coastal British Columbia.
BC Ferries is one of the largest ferry operators in the world, providing year-round vehicle and passenger service on 25 routes to 47 terminals, with a fleet of 35 vessels. We are an essential transportation link that connects coastal communities and facilitates the movement of people, goods and services. In April 2003, BC Ferries was transformed from a Crown corporation into an independent, commercial organization under the Company Act. Our Company is governed by an independent Board of Directors appointed by the B.C. Ferry Authority.