Coastal Class ferry

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Class overview
Builders: Flensburger Schiffbau-Gesellschaft, Flensburg, Germany
Operators: BC Ferries
Built: 2006 - 2008
Building: 3
Planned: 3
Completed: 3
Active: 1
General characteristics
Displacement: 21,980 Tonnage
Length: 160 m (525 ft)
Beam: 28.2 m (92.5 ft)
Draft: 5.75 m (18.86 ft)
Speed: 21 kn (39 km/h/24 mph)
Capacity: 1,650 passengers
370 vehicles

The Coastal Class Ferries, also known as the Super "C" Class, are large double-ended ferries that are being built for BC Ferries of British Columbia, Canada, at the Flensburger Schiffbau-Gesellschaft shipyard in Flensburg, Germany.

These ferries will be replacing the aging V class ferries. These will operate on various route connecting the Lower Mainland to Vancouver Island.

The first new Coastal Class vessel, the Coastal Renaissance, departed for British Columbia on October 27, 2007, and arrived in British Columbia on December 13, 2007. It entered service on the Departure Bay to Horseshoe Bay run on March 8 2008. It will be followed by the Coastal Inspiration, which left Germany on February 9 2008 and arrived March 25 2008, and the Coastal Celebration, which departed on May 9 2008. The vessel names were based on submission received during a "naming contest" in the fall of 2005.[1][2]

The total purchase price of the three new ships was €206.4 million or approximately CAD $325 million at the time of the contract's announcement (September 2004). According to BC Ferries at this time, this was 40% lower than the lowest Canadian shipyard's bid.[3] Since that time, the Canadian dollar has substantially increased vis-à-vis the euro since the time the contract signing. As of March 2006, due to exchange rate fluctuations, the total translated purchase price dropped to CAD $290 million, an unanticipated savings of approximately $35 million in BC Ferries' favour.

There were 14 bids for construction in total, three from within Canada, and the remainder from elsewhere. The decision to build the ships outside of Canada created a large uproar, particularly in BC. There were parties who argued that the Federal government should have stepped in to ensure these new ferries would be built in Canada. Part of the argument was that for reasons of national sovereignty, Canada needed to retain a shipbuilding industry, so there are Canadian shipyards to service Canadian Naval vessels. BC Ferries intended to request the Federal Government waive the 25% import duties (there is no free trade agreement between Germany and Canada), but BC Ferries must show that West Coast shipyards are no longer capable of constructing a vessel the size of the ‘Coastal Class’ ferry. [4]

Another reason BC Ferries chose Flensburger's bid was that aside from taking the risk of construction cost overruns, Flensburger also provided guarantees on the ships' delivery dates and performance. For example, if the ships are not timely delivered to Victoria, BC, then BC Ferries is permitted to levy penalties of CAD $40,000 (€25,000) per day up to a maximum of $6 million. After delays of 180 days, BC Ferries can rescind the contract for a full refund. As of March 2007, construction is proceeding ahead of schedule and under budget.[1][5]

Additional penalties are based on vessel performance. For every 1/10th of a knot that each ferry is not able to meet its contract performance specification, BC Ferries can levy a fine of CAD $160,000 (€100,000). If the ferries fall 1 knot below specifications, BC Ferries can similarly cancel the contract for a full refund. However, as BC Ferries is in dire needs of new ships to replace its ageing, single hulled V-class ferries, a problem increasingly in the media cross-hairs since the March 22, 2006 foundering of the M/V Queen of the North, it is unlikely the corporation would cancel any new ferry for being too late or too slow.

According to BC Ferries, none of the Canadian shipyards' bids provided similar guarantees. The cost certainty guarantee was a significant consideration for BC Ferries (especially since the recent steel price increases) after being liable for cost overruns on the Pacificat fast ferries, which were partially responsible for toppling the New Democratic Party of British Columbia government in the 2001 provincial election.

BC Ferries will also acquire the new vessels' design plans as part of the contract; BC Ferries does not hold title to the design, plans or drawings of the Spirit Class ferries.

[edit] References

  1. ^ a b Vancouver Sun "BC Ferries new ships ahead of schedule" 12 March 2007
  2. ^ BC Ferries Press Release, May 11, 2006 (vessel names)
  3. ^ BC Ferries Press Release, September 17, 2004 (winning bid)
  4. ^ BC Ferries and the west coast shipyards provide a timely case study Canadian American Strategic Review, August 2004
  5. ^ BC Ferries Press Release, August 29, 2006 (construction begins)

[edit] External links