Victoria’s cruise ship industry is closer to getting a little greener thanks to some green from the federal government.  

Federal Transport Minister Anita Anand has announced $35.5 million in funding to increase infrastructure at BC ports and terminals, to create domestic supply chain resilience, and to reduce the impacts of emissions and noise from vessels on coastal communities and the environment.

The biggest portion of the investment—$22.5 million—has been earmarked for Ogden Point to install onshore power for cruise ships. The cruise ship plug-ins will mean no more idling and engine noise in Victoria ports and should help reduce the impact of shipping on the environment.   

Mayor Marianne Alto said the installation of shore power is “going to be profound and will make a really dramatic difference in how the ships interact and the ferry passengers interact with our residents, not just in the city, but throughout the region.”

A $6.4 million portion of the funding will go to hybrid-electric roll-on-roll-off (RoRo) ferries which allow trucks, and buses to drive directly onto the ship and off again using ramps, instead of being lifted on and off by cranes. A $6.6 million portion of the funds will be used to upgrade onshore power infrastructure at the Canada Place cruise terminal in Vancouver, which will increase available power there for ships during the cruise season. 

A final portion, $6 million, is going towards the development of a West Coast green shipping corridor, which includes Ogden Point. The Green Shipping Corridor program provides funding for projects that contribute to the establishment of green shipping corridors and the decarbonization of the marine sector along the Great Lakes, the St. Lawrence Seaway, as well as Canada’s east and west coasts.

This isn’t the first time a funding announcement has been made for onshore power in Victoria. In 2023, the provincial government said it would invest $9 million toward delivering clean power to cruise ships while in port at Ogden Point. That project never came through. 

So, is this really happening?

Anand said she’d been waiting to announce this for months and that some of the funds that had been committed in previous federal budgets were already flowing.

On hand for the announcement at Ogden Point’s B Terminal, Alto thanked the minister for the long-awaited cheque (the plans have been in the hopper for quite some time). Alto emphasized the importance of the green initiatives on the visitor industry and said the investment would address the long-term concerns about pollution, clean air, and noise around the harbour that residents in James Bay have been expressing for years. 

“Having the ability to introduce this type of environmental sustainability around this important industry is crucial and will make a dramatic difference that generations will note for years to come,” Alto said.

‍The projects will bring additional life to an already busy harbour

“The funding will help our terminal provide the necessary power for cruise ships, vessels and commercial operations like Helijet and SSA Marine (cargo logistics), as well as over 30 businesses and partners,” Mark Mawhinney, board chair of the Greater Victoria Harbour Authority (GVHA) said.

Last cruise ship season saw 316 ship visits into Victoria’s port, with 970K passengers and crew in town and potentially visiting the city. 

“Their presence brings energy and vibrancy to our downtown core, and their spending supports over 800 jobs and contributes more than $113 million annually,” Mawhinney said.

The funding announcement was very much anchored in the current political rough seas.

It comes just one day after the US said it would impose tariffs on Canadian steel and aluminum and earlier threats to introduce a 25% tariff on Canadian exports, moves which Anand described as “unacceptable and completely unjustified.”

Anand called the funding announced at Ogden meaningful to create environmentally sustainable infrastructure in Canada. 

“We need to diversify those supply chains and so this investment of $35 million underscores the importance of that principle. And that means investments in our ports,” Anand said.

‍That's 2 capital projects in quick succession

The funds are coming but the city won’t be off the hook for the additional costs related to the complex task of bringing on-shore power to the harbour. And just where the hydro will come from remains unclear. 

“We have to look at a massive capital project here, down to the port to electrify it,” Mawhinney said when asked whether the GVHA has what it needs to carry out the retrofit, including the power.

He said project partners would be speaking to BC Hydro to explore potential sources of that power.  

Alto said she sees the funding and Anand’s presence as a kind of guarantee of investment and recognition of Victoria as an important port.

It’s the second major project to hit Victoria taxpayers’ radar in four days.

On Saturday, the residents of Victorian voted Yes in a referendum calling for the city to borrow more than $160 million to build a replacement for the aging Crystal Pool, which will cost an estimated $209.2 million. 

Tomorrow, the city will begin a budgetary analysis to examine the financial impacts of the Crystal Pool replacement plan and the new onshore power development.