12/04/2025
I know that community members, workers, and travellers have questions about the Kootenay Lake Ferry Service Improvements Project, including on timelines and contracts. I want to thank all the workers who are contributing to building this new ferry, as well as the workers currently operating the M.V. Osprey 2000 and the M.V. Balfour, and thank the community for all your support for this project. Our government is committed to bringing this project to life, and I'm looking forward to riding the new vessel. Please see below for an update from the Ministry of Transportation and Transit:
"The Kootenay Lake Ferry Service Improvements Project includes a new vessel for the route and improvements at both the Balfour and Kootenay Bay ferry terminals, such as improved amenities, additional parking and better access.
As of 2025, the Kootenay Lake ferry improvement project remains budgeted at $117 million. The increase from the initial estimate reflects several factors, including the complexity of the project and its remote location.
Over the past year, construction of the new vessel’s hull and superstructure had been completed. The project has now entered the outfitting phase, which includes the installation of mechanical, electrical and control systems and interior components. It also includes the installation of auxiliary systems bilge and fire pumps and piping, as well as engine cooling, exhaust, and mooring systems.
Work is also being done on the vehicle deck and interior spaces.
Since the vessel contract was awarded, the project has experienced schedule delays, partly due its unique nature.
This project is unique in the following ways:
• Few large inland ferries have been built in B.C. in recent decades.
• Inland waterways are separated from coastal areas by dams, so ferries have historically been built onsite at temporary lakeside shipyards near their operating locations.
• Without permanent shipyard facilities, most of the steel work and all assembly occur outdoors, making progress subject to seasonal and environmental conditions.
In addition to these unique factors, there have been challenges with project delivery by Western Pacific Marine (WPM). On Nov. 10, 2025, WPM was notified that the Ministry of Transportation and Transit was exercising its step-in rights under the design build agreement to complete the work.
The ministry is retaining a project management firm to work with existing subcontractors to complete the vessel. This transition process is already underway.
The ministry will ensure that the vessel meets the highest standards and remains confident the revised in-service date of 2027 will be achieved.
The ministry included accountability measures in the design-build contract, ensuring the contractor is responsible for delivering the vessel within the agreed budget and scope. The contract also provides the ministry with rights to take direct action to address events of default."
