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Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company
Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company

CBC

time12 hours ago

  • Business
  • CBC

Canada Transport Minister Freeland slams B.C. Ferries deal with Chinese company

B.C. Ferries has drawn the ire of federal Transportation Minister Chrystia Freeland for its decision to contract a Chinese state-owned shipyard to build four new vessels for its passenger fleet. Freeland also expressed concerns about security risks related to the contract. In a letter to B.C.'s Transportation Minister Mike Farnworth released Friday afternoon, Freeland expressed her "great consternation and disappointment" with the ferry operator. "I am dismayed that B.C. Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context," Freeland wrote. Earlier this month, B.C. Ferries said the winning bidder on the contract is China Merchants Industry Weihai Shipyards. No Canadian companies bid on the ships, according to B.C. Ferries. But Freeland said, given the value of the contract and the amount of taxpayer money provided to B.C. Ferries' operations, she would have expected Canadian companies to be involved in the bid process. "I am surprised that B.C. Ferries does not appear to have been mandated to require an appropriate level of Canadian content in the procurement or the involvement of the Canadian marine industry," she wrote. Freeland said China has imposed "unjustified tariffs" on Canadian goods, including 100 per cent tariffs on canola oil, meal and pea imports and a 25 per cent duty on Canadian aquatic products and pork. She asked her provincial counterpart to share what it will do to address potential threats to security, including cybersecurity, and determine how B.C. Ferries will lessen "the risks that vessel maintenance and spare parts may pose." "I would like your assurance that B.C. Ferries conducted a robust risk assessment, and I expect them to engage with the relevant provincial and federal security agencies and departments to mitigate any security risk." WATCH | Farnworth worries about B.C. Ferries contract: Transportation minister concerned over B.C. Ferries' construction deal with Chinese shipyard 9 days ago Duration 2:06 Freeland said the federal government has a long record of providing financial support to B.C. Ferries, including a federal subsidy of $37.8 million in 2025-26 dating back to a 1977 agreement. The letter went on to say the Canada Infrastructure Bank is providing the ferry operator with a $75-million loan to finance the purchase of four zero-emission ferries and install charging infrastructure Freeland asked Farnworth to confirm "with utmost certainty" that no federal funding would be used to acquire the new ferries. In an emailed statement late Friday, Farnworth said he has spoken to Freeland about the need to bolster the province's shipbuilding sector. "B.C. has the skilled labour — a partnership with the federal government, provincial governments, and industry is essential for Canadian shipyards to expand physical capacity to build commercial vessels on both coasts," he said. The B.C. Ministry of Transportation said it is reviewing Freeland's letter. B.C. Ferries' response Jeff Groot, executive director of communications with B.C. Ferries, said Weihai Shipyards was selected following a rigorous and transparent procurement process. "It was the strongest bid by a significant margin," he said in an emailed statement. Groot said Canadian companies have acquired around 100 vessels built at Chinese shipyards over the last decade. "Globally, only a few shipyards have the capacity to deliver complex passenger ferries on the timelines and budgets required." Groot said B.C. Ferries has been working with Transport Canada since before the contract was signed, and with Public Safety Canada on safety and security issues. "Also, sensitive systems will be sourced separately and independently certified before the vessels enter service. B.C. Ferries intends that all of our IT networks will be procured from within Canada and installed on the ship by B.C. Ferries' own personnel," Groot said. He added a full-time B.C. Ferries oversight team will be on site at the shipyard.

European lawmakers call for tighter controls on foreign ownership of key ports
European lawmakers call for tighter controls on foreign ownership of key ports

CNA

time2 days ago

  • Business
  • CNA

European lawmakers call for tighter controls on foreign ownership of key ports

ANTWERP, Belgium: Some European lawmakers are increasingly calling for tougher regulations on foreign ownership of critical transportation infrastructure within the European Union, amid mounting concerns over security risks. Chinese companies currently hold stakes in more than 30 European ports - a vital component of the bloc's trade network. The stakes are high as about 75 per cent of goods entering or leaving Europe do so by sea. Over 800 million tons of goods passed through the continent's major ports in the third quarter of last year alone. Essentials such as food, energy supplies and military equipment pass through these vital maritime gateways, raising alarm about their potential to be targeted in geopolitical conflicts. CHANGING NATURE OF THREATS Ana Miguel Pedro, a Member of the European Parliament representing the European People's Party, flagged the evolving nature of threats to critical infrastructure. 'Threats, they don't always come in the form of war. The modern threats are even harder to see,' she told CNA. She cited examples like GPS signal interferences and cyberattacks, as well as damage inflicted to internet undersea cables. In November last year, two telecommunications cables were cut in the Baltic Sea within a 48-hour period, prompting suspicions of "sabotage" and "hybrid warfare". The severing was reportedly linked to a Chinese ship. The European Commission recently raised concerns about foreign control over what it terms "critical transport infrastructure'. It placed particular emphasis on the risks associated with sensitive information flow through ports, including details relevant to operations by the North Atlantic Treaty Organization (NATO) military alliance. Pedro is among those calling for tighter regulations. 'We need to address not only the capital but as well the controls, who has the operational access, who manages the data, who supplies the port software,' she noted. UNEASE AROUND CHINESE FIRMS The current unease has lately centred on Chinese firms that have a large footprint across Europe's ports. Companies such as COSCO and China Merchants control stakes in over 30 of the continent's biggest terminals. Such investments intensified over a decade ago, driven in part by a European port sector heavily in debt. Last year, EU-China trade stood roughly at US$970 billion, or about a third of the world's gross domestic product. However, concerns over China's alignment with Russia amidst the ongoing war with Ukraine has reportedly led to growing anxiety over potential conflicts of interest, according to a recent report by Polish think tank Centre for Eastern Studies. 'We see that strategic interests are drifting apart,' noted Konrad Poplawski, the think tank's coordinator for connectivity and regional integration. 'Therefore, having an actor or even private entities in a strategic infrastructure under the influence of such a partner - it's not so sustainable as before.' One notable example is the port of Antwerp-Bruges - the second largest in Europe - which has attracted significant Chinese investment through the Belt and Road Initiative. In a statement provided to CNA, the port said a balanced approach is needed when it comes to foreign investment, and the goal should be to effectively detect and prevent undesirable foreign interference without hindering the openness that fuels economic growth. The need to keep trade flows open was echoed by the China Chamber of Commerce to the EU. It emphasised the need to keep trade flows open, noting that security discussions should be grounded in facts. 'First of all, (the Chinese companies) were transparent. Secondly, they complied with the EU and national level laws, so we should not ignore the facts,' said the chamber's director of communication and research Linlin Liang. 'And thirdly, it's very important to distinguish and not to politicise the business sector and the trade sector.' Amid recent US-China tensions over control of the Panama Canal, the issue of foreign ownership of ports has been increasingly on the radar of European officials.

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