Loans help deliver 8 vessels to expand capacity, cut emissions and create quieter commutes for passengers
The Canada Infrastructure Bank (CIB) recently made its second investment in modernizing BC Ferries’ fleet and terminal renewal efforts aimed at reducing service disruptions due to mechanical issues, enabling vessel electrification and increasing overall fleet capacity. By providing financing at a lower cost than traditional market rates, the CIB’s investment will also help reduce pressure on future fare increases, BC Ferries said.
The CIB’s initial $75 million investment in four hybrid battery-electric Island Class ferries and the related shore-side charging infrastructure is on track for completion by 2027. The new Island Class vessels are part of BC Ferries’ ongoing efforts to replace its existing fleet over time with quieter and more environmentally friendly vessels. The vessels will be capable of operating exclusively on battery-electric power, once shore-side charging is installed and the new propulsion systems are expected to further reduce underwater radiated noise for marine life.
To help address aging vessels for some of the busiest lower mainland and southern Vancouver Island routes, the CIB has committed to providing an additional loan of up to $1 billion towards the purchase of higher-capacity hybrid New Major Vessels and the related future terminal upgrades. This loan is allocated as two tranches, up to $690 million towards vessels and up to $310 million towards electrification infrastructure.
The CIB’s loan will assist with the replacement of vessels that are between 48 and 61 years old and help to reduce pressure on fares associated with capital upgrades. The design of the vessels includes engines capable of using biodiesel and battery-hybrid propulsion initially, allowing for conversion to full battery-electric operation in the future, a step that is expected to significantly reduce environmental emissions from operations.
BC Ferries is currently planning for the four new higher-capacity hybrid ferries to deliver quieter and more efficient operations on the major routes between Vancouver and Victoria as well as Vancouver and Nanaimo. The vessels are designed to be capable of accommodating 2,100 passenger and 360 vehicles, up from the current average capacity of 1,200-1,500 passengers (+52%) and 250-310 vehicles (+24%).
Without CIB financing, the costs of the new ferries and electrification infrastructure would need to be borne more fully by BC Ferries’ customers and every year of delayed purchase risks more service disruptions, reduced travel options and fewer employment gains.
It is estimated the four vessels alone will result in more than a $1 billion invested by BC Ferries in the local maritime sector for all the repair and refits required over their lifespans. A preliminary independent economic analysis also estimates that the employment impact of BC Ferries' New Major Vessels will be equivalent to more than 360 new jobs annually in BC, including direct, indirect, and induced impacts, generating $27 million annually in wages with an associated GDP impact of $48 million. The new vessels are also expected to facilitate an estimated $660 million in incremental commercial goods movement each year between BC's lower mainland and Vancouver Island.
BC Ferries provides year-round passenger and vehicle ferry services with a fleet of 37 vessels serving 25 routes out of 47 terminals that are spread over 1,600 km of BC’s coastline. In fiscal 2025, BC Ferries carried its highest volume of traffic ever, with 22.7 million passengers and 9.7 million vehicles travelling across more than 90,500 round trips.