6319 replies to this topic

[VicHockeyFan]

Shipyards in europe are world class and put out quality at a good price

 

I notice that a lot of big ferry operators go into BC shipyards, try the stuff out, then go back to their office and order the same thing online for way less.

[Mike K.]

Here's the full press release.

 

 

BC FERRIES AWARDS $165 MILLION IN CONTRACTS FOR THREE NEW
LIQUEFIED NATURAL GAS FUELLED INTERMEDIATE CLASS FERRIES

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.”

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
generation. “This is an exciting initiative for BC Ferries that can reduce upward pressure on fares
British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7
Tel (250) 978-1267 Fax (250) 978-1119 www.newsroom.bcferries.bc.ca
Note to newsrooms: For urgent media inquiries off-hours, call our emergency pager at (250) 516-7211. Page 2
due to lower fuel costs for LNG, and reduce the environmental emissions substantially since
LNG is a cleaner and greener fuel compared to current alternatives,” said Wilson.

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.

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.

Criteria for shipyard selection included the design and construction plan, recent
experience building intermediate ferries, capability of introducing new technology such as LNG,
customer satisfaction (references from other customers), delivery schedule, price and payment
terms, financial stability and ability to provide guarantees.

Under contract to the Province of British Columbia, BC Ferries is the service provider
responsible for the delivery of safe, efficient and dependable ferry service along coastal British
Columbia.




Attachments

Contact:
BC Ferries, Communications
Tel: (250) 978-1267


British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7
Tel (250) 978-1267 Fax (250) 978-1119 www.newsroom.bcferries.bc.ca 





CONTRACT TERMS

Delivery of the Vessel
Remontowa Shipbuilding S.A. is responsible for delivering the vessels to Victoria. Title
transfer will occur in BC. Guaranteed production milestones and delivery dates are specified
in the contracts.
Design and Construction
Remontowa assumes full design and construction risk associated with each vessel.
Regulatory Requirements
Remontowa is responsible for building vessels that comply with all Transport Canada
regulations, as well as classification (international shipbuilding standards) and environmental
regulations. The vessels are classed and delegated to Lloyd’s Register of Shipping.
Payment Terms
The total cost of the three vessels is $165 million Canadian. Four payments of five per cent
per vessel are payable during the construction period, with the remaining 80 per cent payable
upon completion of each vessel.
Delivery Dates to Victoria
Vessel #1 – August 2016
Vessel #2 – October 2016
Vessel #3 – February 2017

Refund Guarantee
A refund guarantee from Remontowa’s bank will be in place to provide security for
BC Ferries’ pre-delivery instalment payments.

Liquidated Damages
Remontowa guarantees the delivery and the performance of the vessels; specifically speed, fuel
consumption, weight and freight capacity, acceleration time and rate of turn. Increasing
financial penalties, up to the point of contract cancellation with a full refund, will be levied if
the performance of the vessel does not meet the contract specifications.

For example, if the vessels are late for delivery, a penalty of approximately $20,000 Canadian
per day will be levied after the first 15 days to a maximum of approximately $6 million
Canadian. After 180 days, BC Ferries can rescind the contract for a full refund.

Another example is speed. If the vessels are more than 2/10 of a knot below specification, a
penalty of approximately $125,000 Canadian will be levied for each 2/10 of a knot up to one Page 4
knot. If the vessels are more than one knot less than the guaranteed speed, BC Ferries can
rescind the contract for a full refund.
Corporate Guarantee
Remontowa will also provide a corporate guarantee from its parent company, Remontowa
Holding, as security for the performance of all of Remontowa’s obligations under the
contracts.
Builder’s Warranty
An extended builder’s warranty of 24 months from delivery will apply to materials,
construction, design and workmanship. This is 12 months longer than the standard terms of
warranty of a typical shipbuilding contract.
Noise and Vibration
Remontowa guarantees that the vessels will be built to the highest shipbuilding standards for
noise and vibration. If they are not, BC Ferries has the right to reject the vessels for a full
refund or BC Ferries may accept a substantial penalty from the builder for excessive noise and
vibration at its option.
Title to Design, Plans and Drawings
BC Ferries will acquire the title to the vessels’ design, plans and drawings upon delivery at no
additional cost to BC Ferries. This will be an important benefit for BC Ferries as the company
embarks on future fleet renewal projects and advances on an overall class strategy.


Drawing and Backgrounders Attached



British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7
Tel (250) 978-1267 Fax (250) 978-1119 www.newsroom.bcferries.bc.ca 
July 3, 2014

BENEFITS OF LIQUEFIED NATURAL GAS (LNG)

• The price advantage of adopting LNG is highly favourable. In today’s market it is
approximately 50 per cent of the price of diesel fuel.

• In fiscal 2014, BC Ferries spent $126 million on fuel. Using LNG will considerably
reduce this expenditure.

• LNG’s market price is expected to remain stable over the medium term, with suppliers
developing expanded supply outlets across Canada and North America.

• LNG is a “greener” and much cleaner fuel source with very favourable environmental
gains compared to diesel fuel. LNG adoption cuts carbon emissions by about 25 per
cent, SOx (Sulphur Oxides) by almost 100 per cent and NOx (Nitrogen Oxides) by 85
per cent, which translates into much cleaner exhaust emissions than diesel fuel.

• LNG can be delivered to our ferries by truck in the same manner that we have done with
diesel fuel for the last 50 years.

• LNG will reduce costs over the life of the vessel and therefore help mitigate financial
pressure for BC Ferries’ customers.

• LNG as a marine industry fuel has been used safely in worldwide shipping, including use
in passenger ferries.

• Currently ferries worldwide have been safely operating on LNG for over 10 years with
more than over a million operational hours.

• Substantial monetary incentives are being offered by LNG suppliers to transport
businesses as “early adopters”

• BC Ferries will be one of the first ferry operators in Canada to adopt LNG as a fuel,
following the Quebec provincial ferry operator STQ.

- 30 -

British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7
Tel (250) 978-1267 Fax (250) 978-1119 www.bcferries.com/bcfnews/
Note to newsrooms: For urgent media inquiries off-hours, call our emergency pager at (250) 516-7211. 
July 3, 2014

BC FERRIES SPENDS MILLIONS AT LOCAL SHIPYARDS

• Over the past 10 years, BC Ferries spent approximately $1 billion at local shipyards on refits,
repairs, mid-life upgrades and life-extension projects.

• BC Ferries provides work for local shipyards including: Seaspan’s Vancouver Shipyards;
Vancouver Dry Dock; Esquimalt Drydock Company; the Esquimalt Graving Dock; Allied
Shipbuilders; and Point Hope Shipyards.

• In addition BC Ferries employs many (non-shipyard) BC ship repair firms such as Meridian
Marine (steel), Northwest Environmental (asbestos containing material abatement), Clark and
Patterson (painting), Quantum Murray (environmental services), Pacific Star Marine
(machinery rebuild), Rolls Royce Canada (machinery supply and rebuild), CCS Coatings
(painting) and McRae Electric.

• BC Ferries operates its own internal vessel refit facility known as the Fleet Maintenance Unit
(FMU), directly employing 140 skilled trades persons. The facility contains a complex of
workshops engaged in highly skilled ship repair activities such as machinery rebuilding,
structural repairs, lifesaving system re-certification and coatings. In some cases BC Ferries’
FMU is the only facility in BC capable of providing the specialized services, such as ship fire
damper repair and LSA slide certification.

• The $45.5 million MV Island Sky was built by Vancouver Shipyards in North Vancouver in
2008.

• Allied Shipbuilders constructed the MV Kuper from the hull of another ferry in North
Vancouver in 2006. The complete rebuild was valued at $7.5 million.


VESSEL MAINTENANCE AND REPAIR IS BIG BUSINESS

• BC Ferries spends an average of approximately $45 million per year on refit and in-service
maintenance for a total of approximately $450 million over 10 years.

• Between 2004 – 2014, BC Ferries carried out many large refurbishment projects: five C-class
mid-life upgrades; Queen of New Westminster life extension; two Q-class mid-life upgrades;
other capital projects (S-class and Capilano class interiors, Queen of Capilano Right Angle
British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7
Tel (250) 978-1267 Fax (250) 978-1119 www.bcferries.com/bcfnews/
Note to newsrooms: For urgent media inquiries off-hours, call our emergency pager at (250) 516-7211. Page 2
Drive replacements, Klitsa upgrade, Howe Sound Queen interior) totaling approximately
$498 million.

• Over the past five years, the Queens of Burnaby and Chilliwack, Quadra Queen II and
Tachek have undergone life extension projects at a cost of approximately $52 million.

• BC Ferries has a fleet of 35 vessels. In a given year, 20 – 25 vessels undergo refit at a cost of
between $1 million - $6 million per vessel for annual re-certification or Classification Special
Survey.

• BC Ferries spends approximately $1million per year on upgrades to electronics on ships to
ensure safety and reliability.

• BC Ferries must drydock and refit 15 major vessels every five years for Classification surveys
at a cost in the order of $4 million - $6 million per vessel.

• Nine intermediate vessels undergo drydock and refit every five years at a cost of between
$2 million - $4 million per vessel.

• Ten minor vessels undergo Transport Canada surveys every four years, which costs between
$1.5 million and $4 million per vessel.

• Diesel engines are overhauled by local vendors and BC Ferries personnel every five years.
BC Ferries has 102 of these units and they cost between $40,000 and $600,000 per unit,
depending on the size and the work required.

• Overhauls of propulsion drive units are conducted by local vendors and BC Ferries personnel
every five years. The fleet has 44 such units and each overhaul costs between $150,000 -
$320,000.

• Large propulsion units (Right Angle Drives) overhauls are done every five years consuming
about 500 hours in labour and approximately $270,000 in materials and services.

• BC Ferries has 69 elevators and escalators in the entire system, with 43 units on the vessels.
Annual costs to maintain the units and ensure they are reliable for customers who need them
cost the company approximately $750,000 annually.

- 30 -

 

[Mr Cook Street]

I'm glad to see some big industry moving towards LNG. Creating some more domestic demand for an abundant natural resource.

[Nparker]

No wonder BC Ferries loses money: they must have spent more than $1 million drafting the above press release 

[HB]

vV must have a big budget for bandwidth looks like the entire TC was reprinted here

[Mike K.]

Investigative journalism, man.

[HB]

I heard an NDP critic *****ing and moaning on CFAX about how BC is throwing local jobs away by not having them built here.

 

She ranted and raved but obviously didnt do her homework.

 

The only local shipyard in the  running was not able to do the job because they are too busy with other contracts.

[VicHockeyFan]

I heard an NDP critic *****ing and moaning on CFAX about how BC is throwing local jobs away by not having them built here.

 

She ranted and raved but obviously didnt do her homework.

 

The only local shipyard in the  running was not able to do the job because they are too busy with other contracts.

 

Ya, I'm sure if someone called her on it she'd say we should build new drydocks or something.  She's a former British mining trade unionist.  Every time she speaks I roll my eyes.

[Mike K.]

And they wonder why they keep losing elections.

[Bingo]

We have made some progress with the design....eh?

 

We replaced that awful looking funnel...

... with a fully functioning houseboat/lifeboat on the upper deck.

 

 

[Nparker]

Please tell me this is a VERY rough sketch of the new design. It looks like it was drawn by an 8 year old.

[Mike K.]

They'll create detailed drawings now that they've won the contract.

[VicHockeyFan]

Please tell me this is a VERY rough sketch of the new design. It looks like it was drawn by an 8 year old.

 

Ya, it's supposed to be vague.

[jonny]

It's a "design-build" contract, so BC Ferries tells the shipyard the general layout, look, feel, propulsion arrangement, size, capacity, etc. and it is up to the shipyard to provide the final design particulars. Why spend money on fancy conceptual drawings then?

[Bingo]

The Discovery Coast Connector

 

The service that once had a direct connection from Port Hardy, now requires passenger to get off in Bella Bella before switching vessels to the 110' Nimpkish for the 9 hour trip to Bella Coola. 

The Nimpkish has a car capacity of 16 and a limitation on the number over-height vehicles, and travels at 11 knots.

 

http://www.vancouver...5965/story.html

 

 

The Nimpkish replaces the  327' Queen of Chilliwack which has a car capacity of 115 and can travel at 12.5 knots.

This vessel was removed during last falls announced cutbacks to service.

http://www.bcferries...chilliwack.html

 

http://www.bcferries...e-nimpkish.html

 

 

[LJ]

^Sounds like they are still being over serviced.

[AllseeingEye]

I rarely find myself in agreement with the T-C editorial page but with regard to the recent BCF decision to build 3 new ships in Poland this is one of their better, well balanced and well reasoned editorials, one that I happen to agree with completely:

 

http://www.timescolo...focus-1.1196959

[gumgum]

I wish there was a site that can tell you the likelihood of a busy ferry sailing based of historical data of a particular day and sailing time from years previous. Someone tell me this exists. I don't like making reservations.

[VicHockeyFan]

I wish there was a site that can tell you the likelihood of a busy ferry sailing based of historical data of a particular day and sailing time from years previous. Someone tell me this exists. I don't like making reservations.

 

Mike K. and I were talking the other day about options for a day-trip to one or more of of the Islands, mostly without car.   There seems to be a lack of info on that.

[LJ]

They give you some info on the BC Ferries website about their busy sailing times etc.

 

 

http://www.bcferries.../BCday_rt1.html

Edited by LJ, 10 August 2014 - 06:39 PM.