BC Ferries gears up for ropax order

BC Ferries has asked provincial authorities for permission to build two or three ropax ferries to replace two of its oldest vessels.

The Victoria ferry owner could place the order by the end of the month, according to a securities filing.

The company said it has made the application to the BC Ferries Commissioner to build vessels with capacity for 300 passengers and 44 vehicles.

BC Ferries revealed the application as it reported a loss for the seasonally week fiscal third quarter.

Mulling proposals

The company is evaluating bids from shipyards after it launched a request for proposals in July for at least two vessels to replace the 841-gt North Island Princess (built 1958) and the 805-gt Howe Sound Queen (built 1964).

One of the new vessels will serve the route between Powell-River and Texada Island and the other will serve from Port McNeill, Albert Bay and Sointula.

The proposed newbuildings are part of a CAD 3bn ($2.24bn) asset renewal programme that involves orders for 14 vessels and mid-life renewals for several existing ships.

As part of that programme, BC took delivery of two of three 600-passenger, 145-car ropaxes from Poland's Remontowa Shipbuilding. The vessels are fuelled by LNG.

"Our strong financial position year-to-date allows us to reinvest in the fleet and replace aging assets like the 52-year old Queen of Burnaby and the 53-year old Queen of Nanaimo with new natural gas-fuelled vessels to ensure the long-term viability of the coastal ferry system," said chief executive Mike Corrigan, who is scheduled to be replaced in April by Mark Collins.

Meanwhile, BC Ferries reported a net loss of CAD 3.97m for the fiscal third quarter, which is a seasonally slow period for the company. The result marks a deeper loss than the CAD 3.67m in red numbers booked a year earlier.

Earnings snapshot (in Canadian dollars)