Loans help deliver 8 vessels to expand capacity, cut emissions and create quieter commutes for passengers
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- BC Ferries' new vessels will expand capacity for passengers and vehicles on its busiest routes.
- Replacing end of life vessels enhances BC Ferries' ability to deliver reliable service, minimize disruptions and deliver a more efficient travel experience.
- CIB loans are expected to reduce the pressure of fare increases on BC Ferries' customers and help BC Ferries achieve environmental goals by introducing electric-ready vessels.
- A large portion of the New Major Vessels loan is targeted to fund infrastructure required to support ferry electrification and associated emissions reductions.
- A study by InterVISTAS estimates that the new major vessels will support thousands of local direct and indirect jobs and the movement of goods.
VANCOUVER, BC, June 26, 2025 /CNW/ - 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.
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.
Endorsements:
The CIB's partnership with BC Ferries further helps to improve one of the world's largest ferry networks. In addition to their environmental benefits, the new larger vessels will have the capacity to transport more people and vehicles on some of its marquee routes, extending the network's capacity. This CIB financing will enable residents and visitors to have earlier access to more reliable, environmentally conscious and cost-effective service.
Ehren Cory, CEO, Canada Infrastructure Bank
This investment is about more than replacing aging vessels - it's about ensuring that our coastal ferry system will have the capacity to meet the needs of the people, goods, and communities that depend on it. We believe that this partnership with the CIB will make a big impact in avoiding additional pressures on fare increases for our customers compared with borrowing from private markets. If we leverage the full loan amount, over the term, we expect to save approximately $650m in debt interest charges. It's a smart, long-term partnership that advances our operational, environmental, and financial goals.
Nicolas Jimenez, President and CEO, BC Ferries
FORWARD LOOKING STATEMENTS
This press release contains certain "forward-looking statements." These statements relate to BC Ferries expectations regarding future events or future performance including without limitation expectations regarding growth in demand for ferry services, future fare increases, ability to meet conditions to future draws under the financing, interest savings under CIB loan versus private market rates, ship reliability and capacity, capability of vessels to run efficiently on alternative fuels or electricity, vessel GHG emission reductions targets, ability of ship design to meet desired outcomes, financial and operational risks, and industry and financial markets performance and trends. They reflect management's current internal projections, expectations and beliefs, and are based on information currently available to management. Some of the market conditions and factors that have been considered in formulating the assumptions upon which forward-looking statements are based include population and demand growth estimates, shipbuilding demand and cost projections, past performance of ship builder and ship designer, traffic trends, inflation, interest rates, fuel costs, construction costs and timelines, our expected future financial condition (including expected sources of future revenues), the state of the economy, fluctuating financial markets and impacts of tariffs, international sanctions and other applicable laws. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. Although BC Ferries believes that the forward-looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and British Columbia Ferry Services Inc. assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by applicable law.
SOURCE Canada Infrastructure Bank
Media Contacts: Canada Infrastructure Bank, [email protected], 416-347-3358; BC Ferries, Media Relations, [email protected], 250-978-1267
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