BC Ferries says it will expand capacity on its busiest routes and reduce future fare pressures with the help of a new loan of up to $1 billion from the Canada Infrastructure Bank (CIB), part of a plan to replace aging vessels and invest in electrification infrastructure.
In news releases this week, the CIB and BC Ferries said the new financing is intended to support more reliable service, reduce mechanical disruptions and help meet environmental targets.
According to the releases, the funding will help BC Ferries replace four major vessels approaching the end of their service lives, between 48 and 61 years old and build the infrastructure needed for future electrification. The vessels will be hybrid-electric ready at launch, with plans to operate fully on battery-electric power once shore-side charging is installed.
“This investment is about more than replacing aging vessels, it’s about ensuring that our coastal ferry system will have the capacity to meet the needs of the people, goods and communities that depend on it,” said Nicolas Jimenez, president and CEO of BC Ferries, in the release.
He said borrowing from the CIB at below-market rates will help avoid putting additional pressure on fare increases. The company estimates it could save about $650 million in interest costs over the term if it draws the full amount.
The CIB said in its release that the funding will be delivered in two parts: up to $690 million for vessels and up to $310 million for terminal and electrification infrastructure.
BC Ferries is planning for four new higher-capacity hybrid ferries to serve major routes between Vancouver and Victoria, as well as Vancouver and Nanaimo. Each vessel is designed to carry approximately 2,100 passengers, about 52 per cent more than typical existing vessels and 360 vehicles, a 24 per cent increase.
According to BC Ferries, the design includes biodiesel-capable engines and hybrid systems to allow for a future transition to full battery-electric operations, a move expected to significantly reduce emissions. The vessels are also designed to operate more quietly, reducing underwater noise that can impact marine life.
This latest CIB loan follows an earlier $75-million commitment supporting four hybrid battery-electric Island Class ferries and shore-side charging infrastructure, with completion targeted for 2027.
Ehren Cory, CEO of the Canada Infrastructure Bank, said in the release that the partnership aims to improve the reliability and sustainability of one of the world’s largest ferry networks while reducing costs for travellers.
“This CIB financing will enable residents and visitors to have earlier access to more reliable, environmentally conscious and cost-effective service,” Cory said.
BC Ferries said the economic impact of the New Major Vessels program is expected to be significant. A preliminary independent analysis projects the equivalent of more than 360 new direct, indirect and induced jobs annually in B.C., generating $27 million in wages and contributing $48 million to provincial GDP.
It is also expected to result in about $1 billion invested in the local maritime sector over the vessels’ service lives, supporting repair and refit work. The new capacity is estimated to help facilitate an additional $660 million in commercial goods movement each year between the Lower Mainland and Vancouver Island.
BC Ferries operates a fleet of 37 vessels serving 25 routes from 47 terminals along more than 1,600 kilometres of B.C. coastline. In the 2025 fiscal year, it carried a record 22.7 million passengers and 9.7 million vehicles on more than 90,500 round trips.
