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BC Ferries Awards $165 Million Contract for Three LNG Ferries

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 LNG-powered 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 total project budget is within the capital envelope set by the BC Ferries Commissioner. The new intermediate class vessels will be the first vessels in BC Ferries’ fleet to operate as dual-fuel capable using LNG or diesel fuel for propulsion and power generation.

Other highlights of the contracts include:

• Remontowa assumes all design, construction and delivery risk
• Guarantees are in place for vessel completion dates
• Favorable payment terms with 80 percent payment upon vessel completion
• Vessel performance guarantees related to speed, carrying capacity, maneuverability and fuel consumption
• Warranties above industry standard
• Penalties for late delivery
• Refund guarantee

Two of the new ships will replace the 49-year old Queen of Burnaby and the 50-year old Queen of Nanaimo. The third vessel will augment peak and shoulder season service, plus provide refit relief around the fleet. These new 344 foot 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.