BC Ferries receives loan for newbuildings

2024-05-28T19:42:29+00:00 May 28th, 2024|Finance|

The Canada Infrastructure Bank (CIB) is to loan Can$75 mill to BC Ferries Services.

This will help finance the purchase of four zero emission ferries and the installation of the required charging infrastructure.

The ‘Island’ class vessels, which will be utilised on small volume and shorter routes, are part of BC Ferries’ ongoing efforts to replace its existing ‘Island’ class ferries with quieter and more environmentally friendly ferries.

The CIB’s loan will cover the higher upfront capital costs of the ferries, compared to diesel, including charging infrastructure, helping to accelerate the electrification of one of the world’s largest ferry networks. Repayment of the investment will come from standard operating revenues comprised of passenger fares and retail revenues.

BC Ferries provides year-round passenger and vehicle ferry services using 37 vessels serving 25 routes out of 47 terminals spread over 1,600 km of British Columbia’s coastline.

In fiscal 2024, BCF carried 9.5 mill vehicles and 22.6 mill passengers on more than 90,000 round trips.

Ehren Cory, CIB CEO, said: “This partnership between the Canada Infrastructure Bank and BC Ferry Services is an incredible first step towards the electrification of one of the world’s largest ferry networks.

“Greener transit is a vital part of our work to tackle climate change and the work that CIB is doing to support it will go a long way in helping us reach our goals of net zero emissions by 2050,” he said.