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Polish shipyard to build new Comox to Powell River ferry

Following the completion of an extensive competitive bidding process, BC Ferries
has awarded Remontowa Shipbuilding S.A. of Gdansk, Poland contracts totaling $165 million to
build three new intermediate class vessels, one set to replace the Queen of Burnaby on the Comox to Powell River route.

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 Mark Wilson, BC Ferries’ Vice President of Engineering.

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

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“As we begin the next phase of our new build program, a key objective is to achieve capital
and operating cost savings and efficiencies through an overall class and standardization strategy,”
said Wilson. “Standardization offers greater interoperability and lower crew training and
maintenance costs, and also enhances safety. This is a significant step forward in taking BC Ferries
from 17 classes of ships to five classes.”

The new intermediate class vessels will be the first vessels in BC Ferries’ fleet to operate
as dual-fuel capable using Liquefied Natural Gas (LNG) or diesel fuel for propulsion and power

Two of the new ships will replace the 49-year old Queen of Burnaby, which sails between
Comox and Powell River and the 50-year old Queen of Nanaimo, which services the
Tsawwassen – Southern Gulf Islands route. The third vessel will augment peak and shoulder
season service on the Southern Gulf Islands route, plus provide refit relief around the fleet.
These new 105 metre vessels will accommodate 145 vehicles and 600 passengers.

The first new intermediate class vessel is scheduled to arrive in British Columbia in
August 2016, the second in October 2016 and the third in February 2017. Remontowa is
responsible for delivering the vessels to Victoria. The first vessel is expected to be in service in
the fall of 2016, following extensive crew training and familiarization.

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The Gdansk ship repair and shipbuilding yard Remontowa Shipbuilding S.A , which is
one of the world’s leading shipyards with state-of-the-art design and production facilities, is a
member of the Remontowa Holding capital group specializing in ship design and construction of
new ships, conversions and repairs, offshore units and steel structures. The shipyard was
established in 1952 and privatized in 2001.

BC Ferries conducted an extensive competitive bidding process to ensure that the
company secured the best bid for its customers and the taxpayers of British Columbia. One
shipyard from BC, Seaspan’s Vancouver Shipyard, was among the five shipyards shortlisted and
invited to participate in the RFP process, however they decided to withdraw as they indicated
they have maximized their available capacity due to commitments with the federal government
building vessels under the National Shipbuilding and Procurement Strategy as well as
constructing BC Ferries’ new cable ferry for Denman Island.

(Contributed by BC Ferries)

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