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New ferries beat clock and budget

聲 Photos: Ferry under construction. FLENSBURG, Germany -- The Coastal Renaissance, the first of three vessels being built here for sa国际传媒 Ferries, is under budget and ahead of schedule, according to the ferry corporation.

聲 Photos: Ferry under construction.

FLENSBURG, Germany -- The Coastal Renaissance, the first of three vessels being built here for sa国际传媒 Ferries, is under budget and ahead of schedule, according to the ferry corporation.

The same thing goes for the next two ships, the Coastal Inspiration and the Coastal Celebration. A fourth ferry, the Northern Expedition, is in the design phase.

The new vessels are part of an effort by sa国际传媒 Ferries to replenish its aging fleet and improve an image that was otherwise tarnished by labour and safety issues -- chiefly the sinking of the Queen of the North nearly a year ago -- as well as higher fares blamed on increasing fuel costs.

As controversial as it was to have the Super-C class vessels built outside of British Columbia, it would be foolish to figure on a fast-ferry fiasco from the German shipyard that's constructing them.

The Coastal Renaissance is rapidly taking shape in the Flensburger Schiffbau-Gesellschaft yard just north of downtown Flensburg. It is expected to set sail for sa国际传媒 in September -- a month ahead of schedule -- and be in service between Horseshoe Bay and Departure Bay before Christmas.

The Inspiration will join the Renaissance in April 2008, and the Celebration will be on the Swartz Bay-Tsawwassen route by July -- also ahead of schedule.

Mike Corrigan, executive vice-president and chief operating officer at sa国际传媒 Ferries, said every indication so far is that the corporation will be able to beat the $542-million budget for the three ferries, set by the sa国际传媒 Ferries board in 2004.

Of that total, Flensburger is getting $334 million for designing and building them.

Uwe Otto, the company's executive vice-president, said rising prices in the past three years have made the sa国际传媒 Ferries deal seem like a bargain.

"The cost would be about 50 per cent higher today," he said.

Otto said the difference is the market for raw materials. Shipbuilders around the globe have been adding capacity to meet a rising demand for container vessels. As a result, costs have soared. Steel has doubled in price in recent years, and copper is up by 400 per cent.

As an example, he said a vessel built for $30 million two years ago recently changed hands for three times the cost of building it. The cost of labour -- about 25 per cent of the total for a new vessel -- has been more stable.

Otto said there has even been a notable rise in costs since last summer, when sa国际传媒 Ferries signed a $133-million deal with Flensburger for the Northern Expedition. "It was a good management decision to go ahead when they did," he said.

Corrigan said that having Flensburger design and build the ferries -- rather than giving it set plans -- has paid off for sa国际传媒 Ferries. It has been able to tap into Flensburger's experience building ferries for other companies, but has still had the flexibility to make hundreds of modifications to the plans since the contract was signed.

While the new ferries are being built, sa国际传媒 Ferries continues to juggle its fleet on the northern routes.

The Queen of Prince Rupert took over service between Port Hardy and Prince Rupert after the Queen of the North slammed into Gil Island and sank on March 22, 2006. Two people were presumed dead, 99 were rescued.

The Northern Adventure will take over that route, with service tentatively scheduled to begin March 31, sa国际传媒 Ferries said. A $9-million refit is due to be completed Friday at Victoria Shipyards in Esquimalt. sa国际传媒 Ferries paid $51 million for the Northern Adventure (plus $17 million in import duties and GST), which was built in Greece in 2004 and formerly named the Sonia.

The Northern Adventure will move to the Queen Charlottes run once the Northern Expedition, expected to be in service by spring of 2009, replaces the aging Queen of Prince Rupert.

Washington Marine Group, which owns Seaspan as well as Vancouver Shipyards and Victoria Shipyards, withdrew from bidding for the northern vessel because of the tight deadlines to build a vessel.

聲 Inside the new ferries.

聲 Exterior drawing of the new Super-C class ferry.