China is rapidly expanding its commercial ferry fleet and modifying vessels to carry tanks and conduct amphibious operations in preparation for a potential "invasion of Taiwan", according to a classified U.S. Defense Intelligence Agency report obtained by the Australian Broadcasting Corporation (ABC), which was reported on Sunday.
The report, prepared earlier this year for the Pentagon, reveals that China plans to build more than 70 large ocean-going ferries by the end of 2026, with modifications that will enable them to participate in military operations.
Five Eyes intelligence monitored approximately 30 Chinese commercial ferries participating in People's Liberation Army (PLA) exercises in 2022 alone, according to the report.
Satellite intelligence reportedly shows the ferries being used alongside new landing docks off China's coastline and deploying amphibious forces in military exercises. The U.S. Naval War College officials noted the landing docks are specifically designed to be compatible with China's Ro-Ro (roll-on/roll-off) type ferries, with door placements and lengths adjusted accordingly.
"The direct insertion of troops into conflict is a belligerent act normally reserved for warships, yet the People's Liberation Army appears intent to use commercial roll-on-roll-off vessels (non-warships) for this purpose," an internal U.S. Indo-Pacific Command paper stated.
Ro-Ro ferries, which can carry hundreds of passengers and vehicles, allow heavy loads to enter and exit directly via ramps. China first used such ferries for military purposes in 2019 during an amphibious landing exercise with the 15,000-ton vessel "Bang Chui Dao."
The report identified three different classes of new landing craft being developed by China, ranging from approximately 110 meters to 185 meters in length, with satellite imagery showing commercial ferries anchored alongside these vessels.
Thomas Shugart, a researcher at the Center for a New American Security (CNAS), said the landing craft and ferries are configured as "matching sets."
The Center for Strategic and International Studies (CSIS) reported that China plans to build 76 large ferries by the end of 2026.
The Pentagon report assessed these commercial ferries as possible military targets in a conflict scenario with China, meaning U.S. forces could target and sink the vessels even with civilian crews aboard during a Taiwan crisis.
A senior Australian government source confirmed to ABC that Australia had also seen the report.
Taiwan's government confirmed it views the vessels as part of China's "expansionist intentions."
"We are also seeing increasing grey-zone tactics ... to weaken Taiwan's democracy and society, such as cyber attacks," Douglas Hsu, Taiwan's chief representative to Australia, told ABC.
"Civilian vessels or other dual-use facilities in (the) maritime domain are also part of China's strategy," Hsu added.
The Five Eyes alliance—comprising the United States, United Kingdom, Canada, Australia and New Zealand—continues monitoring these developments as tensions persist.