Friday, July 04, 2014

BC Ferries Award $165 Million Contract


THREE NEW LNG FUELLED INTERMEDIATE CLASS FERRIES

TO BE BUILT IN GDANSK POLAND


VICTORIA – 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.

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

“As we begin the next phase of our newbuild 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.”

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.

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