BC Ferries contract awarded to company overseas
Posted July 3, 2014 1:21 pm.
This article is more than 5 years old.
VICTORIA (NEWS1130) – Another major BC Ferries contract is going to a shipbuilding firm overseas.
Remontowa Shipbuilding in Poland will get $165-million to build three mid-size ferries that will run on liquefied natural gas.
The vessels will replace those running on routes between Comox and Powell River, and Tsawwassen and the Southern Gulf Islands.
Mark Wilson, BC Ferries’ Vice President of Engineering says the contract was offered internationally and to every shipyard right across Canada.
He says Seaspan pulled out at the last minute. “At the very end of contract closing, Seaspan withdrew from the process on their own accord because they stated that there were capacity issues that, essentially, that their order books were full for the next four to six years.”
The last ferry contract to build the new Coastal-Class ships went to Germany.
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 Wilson.
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
