News

Hey Saudis, Wanna Buy a Fast Ferry?

PacifiCats get a look for Red Sea route. Brokers still flogging the vessels.

By Andrew MacLeod, 19 Jan 2009, TheTyee.ca

PacifiCat Ferry

PacifiCat docked in North Vancouver.

A few months ago, the Saudi Gazette ran a story which may prove to be of some interest to British Columbians wondering if the PacifiCat fast ferries might ever find a buyer.

The subject was a new ferry service planned for the Red Sea between Egypt, Sudan and Saudi Arabia. The routes would likely be well travelled, with many Egyptians and Sudanese making pilgrimages to Mecca and many Saudis visiting relatively liberal Egypt.

The route has been somewhat underserved since 2006, when an Egyptian-run ferry sank drowning over 1,030 people.

"A Saudi-owned and managed ferry transport company will be launched and operational in the first quarter of 2009 as soon as the board of directors is duly constituted," the article said. "A newly formed company IBHAR... co-owned by several prominent Saudi businessmen, will get off the ground with an initial five ferry boats plying across the Rea Sea from Jeddah to ports in Egypt and Sudan, each having a capacity of 1,200 passengers and five hundred tons of cargo including 500 cars."

Could three of those boats be the PacifiCats, built by Vancouver shipyards for B.C. Ferries in the 1990s at a cost of some $450 million, then auctioned back to Washington Marine Group for under $20 million?

The numbers aren't quite right -- the PacifiCats carry more like 1,000 passengers and 235 cars -- but were close enough to get people talking.

Purchase from Canadian company

The main source for the article was Capt. Mohammad Abood Babiadan, IBHAR's managing director. For readers of Arabic, his company's plan is available in a presentation he made to a meeting in Saudi Arabia last March. I'm told the plan includes expansion into serving the Persian Gulf, but does not say what ships the company will use.

According to the Saudi Gazette article, "Babiadan disclosed that a letter of understanding was signed earlier with a Canadian company for the purchase of four 5-year-old ferries after a technical group from Saudi Arabia has had an ocular inspection of the boats."

It noted that the ships were roll-on/roll-off ferries, where loading and unloading are possible at both ends of the vessels. The PacifiCats are also that type.

The article pointed out buying used ferries could save a three-year waiting period to have a new ship built. Assuming the PacifiCats, for example, will sell for closer to $20 million than to $450 million, it would also save the Saudi company a few dollars.

PacifiCats considered

Babiadan could not be reached at his Capt. Abood Centre for Marine Studies phone number, but he did respond to e-mails.

"We have been approached by a broker of these ferries in case we are interested to utilize for our service in the Red Sea," he confirmed. His company has considered the ships, he said, but has not made any commitment to buy them.

"We are not the one ready to conclude the deal at the present time, due to the fact that steps to complete establishing the company are not yet settled." IBHAR is also looking at other ships, he said.

He added that he's aware the brokers continue to shop the PacifiCats around. "We know also that maybe other buyers from different areas could be more desperate," he wrote. In a subsequent e-mail he said he did not know who other buyers might be.

Washington Marine Group vice-president Spiro Risvas confirmed there has been recent interest in buying the PacifiCats, but said there's nothing to announce yet. "There are people interested," he said.

The company has two brokers working on the sale, one based in Vancouver, one in England.

BC Ferries international spin-off

Efforts to sell the PacifiCats do not appear to be related to B.C. Ferry Services Inc.'s work in the United Arab Emirates. Victoria's Monday Magazine in the fall reported that Doug Allen, who acted as president and CEO of B.C. Ferries during the 2003 transition from Crown corporation to quasi-private publicly owned company, is the "point man for the deal to provide a ferry service for hundreds of privately owned islands being built offshore in the Persian Gulf."

A colleague in Allen's Victoria office said he left for Dubai on Jan. 8, but declined to say how long he would be there.

The Road and Transport Authority of Dubai closed a competition on Jan. 8 seeking "a high-calibre international marine transportation organization with a proven track record" to run a ferry service. The tender said a decision should be made by Feb. 8.

A call to the B.C. Ferries media line was not returned by publication time, but the company's most recent financial disclosure makes it clear the company is looking for opportunities abroad. "In September 2008, we established BCF Global Services Inc. (BCF Global) as a wholly owned subsidiary to provide consulting and management services both domestically and internationally," it said. "BCF Global will take advantage of our expertise and long history in the marine transportation business to pursue new business opportunities relating to the development, operation and maintenance of ferry systems."

No doubt B.C. Ferries officials could tell potential clients a thing or two about buying the boats Washington Marine Group has for sale.

Related Tyee stories:

 [Tyee]

31  Comments:

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  • Van Isle

    3 years ago

    So, is this why some of the

    So, is this why some of the BC Ferry execs have been wondering around the Persian Gulf?

  • Grumpy

    3 years ago

    Anything................

    ................for free trips to the sun!

  • Van Isle

    3 years ago

    While they are there, do you

    While they are there, do you think they're trying to flog those cavitating gas guzzlers too?

  • southdeltawalker

    3 years ago

    BCF-Global?

    OMG!! B C Ferries is going global! Ha ha-too funny!
    I guess management wants some free foreign trips.

    BCF-Global can only mean-
    B eing
    C ompletely
    F oolish

    And here in BC Ferries-BCF with their new gas guzzlers has to be-
    B eing
    C ompletely
    F uelish

  • Rod Smelser

    3 years ago

    WASHINGTON MARINE GROUP RESERVATION PRICE

    In any potential sale the Washington Marine Group will have a reservation price, and it would have to be a good deal higher than $20 million simply to cover their implicit interest and opportunity costs over the past several years.

  • happy

    3 years ago

    I don't see it

    A technical study was done for Pricewaterhouse in 2001 to determine the feasability of operating the Cats in tropical conditions.
    It concluded, while technically possible extensive modifiactions would have to be carried out to the HVAC systems which would result in an weight increase of 5 tons.
    As the Cats were already condidered too heavy the main engines would have to be derated to a lower horsepower. This would actually increae fuel economy, but at the expense of slower speeds.
    So, possible? Yes. Likely to happen?
    Doubtful I would think. But stranger things have happened.

  • Fan of reality

    3 years ago

    Getting what you pay for

    I guess BC Ferries' strong record of sound fiscal management, on-time preformance, prudent maintenance and customer satisfaction is winning them a reputation worldwide.
    All I can say is, awesome.

  • Skywalker

    3 years ago

    Not quite accurate Happy.

    Here's the quote. Note the summary in the last few sentences

    Any type of operation in a tropical climate, however, would necessiate a number of changes to the vessels' existing heating, ventilation and air conditioning systems, according to a report by John J. McMullen Associates, Inc., released in 2001. JJMA determined that "for successful operations in the tropics, very significant and extensive HVAC modifications will be required on the passenger cabin deck, the vehicle decks, and the engine rooms.

    Continued JJMA: "On the positive side though, it has been determined that the existing electrical generating capacity aboard is adequate for the estimated 50 kW increase in electrical loads of the necessary HVAC upgrades.

    "Additional sound attenuation means may need to be provided throughout the vessel to handle the increased noise due to the increase in ventilation capacity Also, due to the high tropical air and seawater ambient temperatures, the MTU main propulsion engines will need to be derated by 4.5 percent. Although fuel consumption is expected to improve by 3.5 percent, design full load speeds will likely decrease by 1.5 knots. The impacts of tropical operations are significant, but are not impossible to overcome, nor overly onerous for successful tropical operations."

  • Fish-counter

    3 years ago

    Van Isle:

    I hope the three FastCats do get sold. It would be a bonus if the purchasers took David Hahn, Karl Lilgert and Karen Bricker as part of the deal. All I am saying is that those three catarmarans are excellent vessels and we have three perfectly matched officers to go with them. What is wrong with that? The Red Sea is an excellent location. The scuba diving is the best in the world!

  • happy

    3 years ago

    You lost me Skywalker

    What wasn't accurate? Fuel consumption down, speed down, weight up. I said it was doable, although unlikely.
    Unlikely IMO, because of economics and the fact the buyers are looking for higher cargo capacity than these have. How did I mislead you? Please explain

  • stevie wonders

    3 years ago

    PacifiCats as monuments

    I would miss the PacifiCats, should they ever leave Vancouver Harbour. Actually, I don't think they should have been sold by the taxpayers in the first place.

    A more suitable use would have been to preserve them as monuments. One could have been permanently moored in Victoria, another in Nanaimo, and the remaining one in a more prominent position in Vancouver Harbour so that future generations would be reminded of the colossal ineptitude that NDP governments are capable of.

  • Skywalker

    3 years ago

    Happy

    There was nothing about increased weight.

  • Skywalker

    3 years ago

    Right on Stevie Wonder.

    I know what you mean. Better to pee away five times the fast cats on cost overruns so all the money goes into a black hole and people never see it happen. Yes, sounds much sweeter to me and as a taxpayer it sure makes me feel better.

  • happy

    3 years ago

    Read the whole report Skywalker

    Qoute: "Due to the derated power of the MTU main propulsion engines, combined with the weight increase of approximately 6
    tonnes, the three PacifCats will experience a decrease in service speed in all loading conditions in tropical operations."

  • Stump

    3 years ago

    Monuments to Hubris

    "so that future generations would be reminded of the colossal ineptitude that NDP governments are capable of."

    Like the Liberal's overrun-arrific Convention Centre? That ain't going anywhere and needs a nice big picture of Gordon Campbell on the side, with the slogan, "I wanted it, but you're paying for it!"

  • DPL

    3 years ago

    Why not install gas turbine

    Why not install gas turbine engines? Lots of ships have such powerplants. They are lighter than the present engines and a small gas turbine air unit should work well. Washinston Marine suggested gas turbines way back when. why the talk of BC Ferries, who have no connection to the fast cats?

  • happy

    3 years ago

    DPL

    The original design for the Cats had gas turbines for the powerplant system.
    After costs started escalating, a poitical decision was made to go with cheaper deisels.
    This was totally aginst what the Marine engineers wanted, and which was the main reason for the failure of the program. They ended up too heavy, with four high speed deisels, rather than two more powerful and WAY lighter turbine engines.
    They could be converted but the costs are not worth it. If it was, WMG would have done it ten years ago.

  • BC Mary

    3 years ago

    Do you agree: those PacifiCats must die?

    Some people would rather see the PacifiCats cut up for scrap metal, or used as a monument to some negative notion, rather than use them.

    Because why? Because the NDP government built them, that's why.

    Buy clunkers from Germany, rather than use them.

    Build $1Billion "Olympic Athletes Village" rather than use them.

    Rent U.S. cruise ships as Olympics police accommodation rather than use them.

    How monumentally stupid is that?

    Well, at least It illustrates the lengths some people will go to, trying to destroy what others create.

    .

    .

  • Skywalker

    3 years ago

    No Happy, BC Mary is more accurate.

    You said "They could be converted but the costs are not worth it. If it was, WMG would have done it ten years ago." No, they would not have made modifications unless they had a buyer who specified the modifications they wanted. As BC Mary has pointed out there is a negative force at play which WMG will wait out. Currently the BC Liberals will do everything possible to make sure that the ferries or any form of the investment is never salvaged. To do that would be to confirm that it was nothing but partisan politics that prevents their use. For the Campbell, who has never been too concerned with the truth, it is too good an opportunity.

  • Fish-counter

    3 years ago

    Confessions of an urban explorer.

    A few years ago, when there were two FastCats moored in Departure Bay, I paddled my canoe under the hull. I resisted the temptation to tag the hull, or bang on it with my paddle, but I did take a few pictures from underneath. I got the hell out of there and waited a couple of hundred yards away as the patrol boat same looking. Has anyone else done that?

    Another time I stole a bathtowel from the Queen of the North. I still have it, and I use it at the gym. If BC Ferries ever come clean on how the boat went down, I will gladly return to to David Hahn in person. I had no idea it would be the only artifact left from the old boat. Who knew?

  • gassyandy

    3 years ago

    new targets

    All right I will be watching the news carefully to see if some offshoot terror group tries to blow one up while it is in service over there. Then we will see how well they were built!!!

  • Machiatto

    3 years ago

    My idea

    My idea (which you are welcome to forward up and along the information chain to the Fraser River Port Authority and Translink and the Ministry of Transportation etc) is to snap up some of the unused waterfront at Columbia Street in New Westminster and implement a ferry system as a people mover to get people from all the surrounding areas to about Knight and Marine in Vancouver.

    First of all, why would it *not* work?

    Using all avenues and modes of transport including the river waterways would be a significant way to reduce traffic congestion and gridlock.

    Is it simply too innovative? Cost prohibitive?

    Theres already a water taxi service from Horseshoe Bay isnt there? To Bowen Island?

    IMO, Translink et al have been far too narrow minded in restricting their thinking methodologies to the tried and true, not considering things like railways.

    What a boon for tourism it would be, just for instance, to have San Francisco style cable cars in some parts of Vancouver.

  • Kam Lee

    3 years ago

    arabs and ferries

    Just do us all a favour, put a big bar and some coke on board. Gordo will get on his two hind legs and jump aboard with glee. Two problems solved. Time for him to go.

  • happy

    3 years ago

    Skywalkers conspiracy

    Let me tell you a little about Dennis Wahington. He has more money than God. He doesn't have just a private jet, he has a fleet.
    He didn't get that way by taking orders from politicians telling him what he can do with his assets. He doesn't even live here, he's American.
    I think we can assume Gordo isn't ordering him around.
    If you had bought an asset dirt cheap and were able to modify it and then flip it for a profit, you would, wouldn't you.
    So would he. And, as you assert if he's waiting for a buyer before proceeding, well, where are they?
    It's not like WMG hasn't been trying to sell.
    They've been trying for going on ten years

  • G West

    3 years ago

    Washington

    Yep! I've always thought all those proudly Canadian logos on all the WMG bumpf were a little over the top.

    Kind of like Michael McCain's aw shucks plaid shirt style when he's talking about Maple Leaf Foods’ cleanliness standards and Listeria.

    Dissonant! That's the term - and deceptive : But entirely at home in a Campbell/Harper universe.

  • Skywalker

    3 years ago

    and Happy's denial.

    If Dennis is that wealthy, which he well might be, he didn't get that way by being stupid. Stupid would be to make modifications without a buyer in the wings. He might have to make modifications to the modifications. Since the Province under the Liberals will never be interested in the "modified" ferries for partisan reasons - hang the taxpayers - they will sit there until sold to some other country or aluminum rusts. For Campbell to even hint that they might be useful in some capacity would be an admission that dollars were flushed for political gain.

  • happy

    3 years ago

    Last question then Skywalker

    Why are there no buyers?
    Like you say, Campbell won't buy them. The NDP parked them.
    They've been flogged globally for almost ten years.
    I've heard plans to convert them to military troop carriers to floating casinos off the US east coast and now the Red Sea option.
    Its out of Campbells hands. He doesn't own them. He can't tell the owner what to do with them.
    Before I end, to clear up any misconception, I know that they are built to a high standard, as I would expect.
    But thanks to Glen, they were set uo for failure before they were ever launched.
    You read the Auditor Generals report. Wrong engines. Political decison.
    I don't blame the shipyards, I don't blame the unions, I blame Glen.
    You should to.
    BTW, aluminum doesn't rust. It corrodes.

  • RickW

    3 years ago

    Stevie Wonders

    I trust you wouldn't be disappointed to see the German Ferries parked along side the Fat Cats, so the public could see the equally colossal ineptitude that Liberal governments are capable of.......

    No need to reply. EDITED INSULT - MODERATOR

  • Fish-counter

    3 years ago

    Fast Ferry problem solved; three options

    1. Put them on the Inland Passage route and run them into Gill Island. They could keep the Queen of the North company. No explanation would be needed for at least two years. Everyone involved could stonewall and look dumb on TV. It would be business as usual.

    2. Sink them in shallow water as artificial reefs. Divers paradise!

    3. Use them as Casinos; a place to lose money legally.

  • Skywalker

    3 years ago

    Happy, when aluminum rusts...

    ...is when "hell freezes over". The political decisions were also not only by the government at the time. Also it is not out of Campbell's hands, just because he has washed them and made BC Ferries into a private company. Buying German "gas guzzlers" was not out of Campbell's hands. Convnetion Center over runs was not out of Campbell's hands. The give-away that was BC Rail was not out of his hand's. Fast Ferries pales when you consider the sum total of Campbell's deeds.

  • Fish-counter

    3 years ago

    Someone is still driving drunk

    Incompetence seems to be the rule at BC Ferries.
    Their failures are spectacular.

    Travel in BC could be hazardous to your health.
    If you go by ferry, the boat could be run aground.
    If you go by air, you could get Tasered to death at the airport.
    And you ask, "Why is tourism down?"

    We are hosting the Olympics in 2010.
    Remember, the Polish team will be arriving in a year's time.
    Perhaps the airport union could put on a language class.
    The ferry officers should learn how to read a radar screen.

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