The highlighted numbers must be netted. The first shows a reduction in asset cost; the second shows a removal of accumulated depreciation. The net amount taken out of asset accounts would be $114,000 and the income statement shows a gain on disposals of $32,000. indicating vessel proceeds of no more than $146,000, perhaps less because the gain or loss on the vessel disposal is not segregated from dispositions of other assets. The vessel sale proceeds range is consistent with the report I made in this item below, published Sept 21, 2015. BC Ferries does not state this disposal relates to the Queen of Chilliwack but I’m not aware of any other vessels sold in the period.
In April 2015, MLA Clair Trevena spoke in the Legislature during estimates of the Ministry of Transportation and Infrastructure:
We had a refit which began just five years ago and lasted for two years, a refit of the Queen of Chilliwack. The minister, I’m sure, is well aware of the Queen of Chilliwack. This is the one that was used on some of the Sunshine Coast runs as a backup ferry and was used in what was then route 40. As I understand it, this was $15 million.
The refit, completed by 2012, included a new car deck, watertight doors, new propeller seals, a new instrumentation control system, new sewage treatment, holding tank, pump-out system and life-saving systems. The second phase, which began in 2012, was the installation of three new generators, electrical and HVAC system upgrades and a renewal of the propulsion control system.
This upgrade meant that the ferry was going to have a significant increase in its life…
Last year, a letter by Transportation Minister Todd Stone stated the refit cost of the MV Queen of Chilliwack was $17 million. Now, the vessel is leaving for Fiji where it will add to transportation services provided by the former Queen of Prince Rupert. Two weeks ago, new owner Subarmani (George) Goundar – a former BC Ferries manager – talked with the Fiji Sun:
Company managing director, George Goundar said they finally sealed the deal over the purchase of the vessel last Friday from previous owner, British Columbia Ferry Services. The negotiations over the acquisition took about two years.
He indicated that the travelling public would be impressed at the state-of-the-art facilities this vessel has to offer.
Mr Goundar explained that the new vessel is 36 years old but is of very high standard, has updated technological equipment and state of the art passenger facilities.
He revealed that the previous owner had spent more than $FJD 40 million ($28 million Canadian) on upgrade and maintenance just two years ago.
Shortly after renovation of the Queen of Chilliwack was completed in 2013, BC Ferries announced it was retiring the ferry.
The new owner paid $100,000 and, reportedly, the deal calls for the ship to be delivered with full fuel tanks. If true, the fuel would be worth far more than the selling price.
In the major “life-extension” refit completed shortly before retirement of the Queen of Chilliwack, flood control doors were added. According to manufacturer MacGREGOR, these are installed:
to improve the survivability of RoRo passenger/car ferries damaged at sea. These improvements were developed to prevent a rapid capsize so that a rescue operation could be carried out in an organised manner.
One efficient way of improving the survivability of RoRo vessels is to divide the car deck into water tight compartments with longitudinal or transverse barriers. These flood control doors prevent the free water from spreading over the whole car deck, and thus decrease the total free surface effect and its potential to capsize the vessel.
Categories: BC Ferries