National Shipbuilding Strategy

Context

The National Shipbuilding Strategy (NSS) is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy and Canadian Coast Guard (CCG), create a sustainable marine sector, and generate economic benefits for Canadians.

Suggested Response

• The Government is delivering on its commitment to renew the Royal Canadian Navy and the Canadian Coast Guard fleets, create jobs and opportunities for hard working middle-class Canadians, and revitalize our marine industry.

Progress on current work

• At Seaspan’s Vancouver Shipyards, the first Offshore Fisheries Science Vessel, the CCGS Sir John Franklin, was delivered on June 27, 2019. The second vessel, the CCGS Capt. Jacques Cartier, was delivered on November 29, 2019. Work is ongoing on the third vessel and the first Joint Support Ship.
• At Irving Shipbuilding, four Arctic and Offshore Patrol Ships are under construction with the first to be delivered to the Royal Canadian Navy in early 2020. Design work on the Canadian Surface Combatant is advancing.

Third yard

• To support additional shipbuilding requirements, Canada has launched a competitive process to identify a third Canadian shipyard as a partner under the National Shipbuilding Strategy. This yard will build six Program Icebreakers for the Canadian Coast Guard.
• On August 30, 2019, we closed the invitation to qualify and are currently evaluating the two responses that were received.
• The entire process is being overseen by an independent fairness monitor.

Opportunities for other yards / Chantier Davie

• Across the country, opportunities exist for Canadian shipyards and businesses to win contracts for small vessel construction, repair, refit and maintenance.
• Since 2012, Chantier Davie has been awarded $1.39 billion in National Shipbuilding Strategy contracts. They are presently converting two icebreakers for the Canadian Coast Guard, and have the opportunity to compete to become the third shipyard under the National Shipbuilding Strategy.

If pressed on the Polar Icebreaker

• The government is exploring procurement options for the Polar Icebreaker. No decisions have been taken.

If pressed on the second interim Auxiliary Oiler Replenishment vessel (Obelix)

• The Royal Canadian Navy has identified a need for only one interim Auxiliary Oiler Replenishment vessel to address their requirements until the Joint Support Ships are delivered.

If pressed on Interim Icebreaker Capacity for Canadian Coast Guard

• The Government awarded $700 million in contracts to Chantier Davie for the acquisition of three medium commercial icebreakers and conversion work. The first vessel began operations in December 2018, with the second and third vessels available in 2020.

Background

In August 2019, a competitive process was launched to select a third Canadian shipyard under the NSS to build six Program Icebreakers for the CCG. The list of qualified Respondents will be publicly announced in due course.

The Polar Icebreaker needs to be delivered to the CCG by 2030 when the existing CCGS Louis S. St. Laurent will be retired. Canada is exploring all available procurement options.

Contracts under the NSS

From 2012 to June 2019, the Government signed approximately $11.4B in new NSS contracts throughout the country. These contracts are estimated to contribute $1.2B annually to GDP and create or maintain 11,192 jobs in the Canadian economy.

Date modified:

2023-05-10