The year in review: Canada’s National Shipbuilding Strategy—2019 annual report

Navigation for Canada’s National Shipbuilding Strategy: 2019 annual report

• Previous page
• Table of contents
• Next page

On this page

• Large ship construction
• Small ship construction
• Repair, refit and maintenance
• Selecting a third shipyard
• Other marine procurement projects
• Contracts awarded by province

Large ship construction

In 2019, approximately $0.8 billion worth of new construction contracts were announced or awarded to Seaspan’s Vancouver Shipyards (VSY) and Irving Shipbuilding Inc. (ISI).

These contracts are estimated to contribute more than $1.04 billion ($261 million annually) to gross domestic product (GDP), and create or maintain more than 2,550 jobs annually, through the marine industry and its Canadian suppliers from 2019 to 2022.

Progress at Seaspan’s Vancouver Shipyards

• In May 2019, the Government of Canada (GC) announced that VSY will build up to 16 new multi-purpose vessels for the Canadian Coast Guard (CCG)
• The first offshore fisheries science vessel (OFSV), the Canadian Coast Guard Ship (CCGS) Sir John Franklin, was delivered to the CCG in June 2019
• The second OFSV, CCGS Capt Jacques Cartier, was delivered in November 2019
• Construction continued on the third and final OFSV, the future CCGS John Cabot, which is expected to be delivered in summer 2020
• Construction continued on the initial early blocks of the first joint support ship (JSS) for the Royal Canadian Navy (RCN)

Progress at Irving Shipbuilding

• In February 2019, the GC and ISI selected Lockheed Martin Canada for the design of the 15 new Canadian surface combatants (CSC) that will be built by ISI
  • the vessels will be based on the BAE Systems type 26 global combat ship
• In May 2019, the GC announced ISI will build 2 additional Arctic and offshore patrol ships (AOPS) that will be customized for the CCG
• Construction also began on the fourth AOPS in May 2019
• In November 2019, ISI conducted initial testing at sea for the first AOPS
  • it is expected to be delivered to the RCN in 2020
• The second AOPS, the future Her Majesty’s Canadian Ship Margaret Brooke, was launched in November 2019

Small ship construction

In 2019, the GC awarded approximately $120.2 million in new small ship construction contracts to Canadian shipyards. All of this work is being performed by small and medium-sized enterprises with fewer than 250 full-time employees.

These National Shipbuilding Strategy (NSS) contracts are estimated to contribute close to $69 million ($17 million annually) to GDP, and create or maintain more than 170 jobs annually, through the marine industry and its Canadian suppliers from 2019 to 2022.

Progress during the reporting period

• In April 2019, the GC awarded a $102 million contract to Ocean Industries Inc., of Isle-aux-Coudres, Quebec, to construct 4 naval large tugs for the RCN
  • construction is expected to begin in 2020
• In July 2019, a $2.1 million contract was awarded to Canadian Maritime Engineering Ltd., of Port Alberni, British Columbia, to build 4 steel barges for Canadian Forces Base Esquimalt
  • the project is expected to be completed in 2020
• In June and July 2019, the CCG accepted the fifth and sixth search and rescue lifeboats, the CCGS Conception Bay and CCGS Sacred Bay, into its fleet
  • Hike Metal Products of Wheatley, Ontario, and Chantier Naval Forillon of Gaspé, Quebec, are building a total of 20 lifeboats for the CCG (10 at each yard)
• In December 2019, the GC awarded a $1.3 million contract to Robert Allan Ltd. of Vancouver, British Columbia, for the design of 1 new near-shore fishery research vessel for the CCG

Repair, refit and maintenance

In 2019, the Government of Canada awarded approximately $2.3 billion in new or amended repair, refit and maintenance contracts to Canadian companies.

These NSS contracts are estimated to contribute more than $3.0 billion ($758 million annually) to GDP, and create or maintain more than 7,600 jobs annually, through the marine industry and its Canadian suppliers from 2019 to 2022.

Additionally, in May 2019, the GC announced it will invest more than $2 billion in vessel life extensions for the existing CCG fleet. This will help the CCG continue to deliver critical services while new ships are being built under the NSS.

Progress during the reporting period

• During the summer of 2019, the GC awarded 3 contracts to Seaspan’s Victoria Shipyard, ISI and Chantier Davie of Lévis, Quebec, initially totalling $1.5 billion^{footnote 1}, to carry out maintenance work on the RCN’s Halifax-class frigates
  • this is part of a $7.5 billion investment to provide necessary, ongoing maintenance for the frigates until they are retired in the 2040s
• In fall 2019, a competitive process was launched for the next in-service support contract for the RCN’s Victoria-class submarines
• In October 2019, the GC awarded a $1.6-million contract to Heddle Marine Service Inc. of Hamilton, Ontario, for refit work on the CCGS Caribou Isle
• In September 2019, the GC awarded a $1.9-million contract to Verreault Navigation Inc. of Les Méchins, Quebec, for vessel life extension work on the CCGS Samuel Risley
• In May 2019, the GC awarded a $3.6 million contract to Heddle Marine Service Inc. for refit work on CCGS Pierre Radisson
• In April 2019, the GC awarded a $7.1 million contract to Chantier Davie for the dry-dock refit of CCGS Louis S. St-Laurent, the CCG’s largest icebreaker and the flagship of its fleet
• In February 2019, the GC awarded a $10 million contract to Newdock St. John’s Dockyard Limited of St. John’s, Newfoundland and Labrador, for the refit of CCGS Hudson
• Public Services and Procurement Canada (PSPC) continued to host marine industry workshops across the country to help advance small vessel and repair, refit and maintenance program strategies
  • the Marine Industry Advisory Committee held meetings in March, June and November 2019

Selecting a third shipyard

• In August 2019, the GC launched a competitive process, through an invitation to qualify, to select a third Canadian shipyard as a strategic partner under the NSS
  • given the urgent need to renew the CCG’s fleet to ensure that essential operational requirements are met, this shipyard will build 6 new program icebreakers
• In December 2019, the GC announced that Chantier Davie pre-qualified through the Invitation to Qualify, having demonstrated it met initial requirements related to experience, capability and capacity
• Chantier Davie moved to the next stage in the selection process, the request for proposal (RFP) and evaluation stage
  • the selection process is expected to be completed by the end of 2020
• This process is similar to the one used to select Seaspan and Irving as partners under the NSS in 2011

Other marine procurement projects

• In June 2019, the GC announced Chantier Davie will build 2 new ferries for Transport Canada
  • the new ferries will replace the Motor Vessel (MV) Madeleine, which is currently used for service between Îles-de-la-Madeleine, Quebec, and Souris, Prince Edward Island (PEI), and MV Holiday Island, 1 of 2 vessels used to provide service between Wood Islands, PEI, and Caribou, Nova Scotia
• In February 2019, the first request for information (RFI) was issued to industry for the procurement of an existing light icebreaker for the Canadian Coast Guard
  • the second RFI, which included the draft RFP, was released in December 2019
  • this ship will provide critical icebreaking capacity in Atlantic Canada, the St. Lawrence, and Great Lakes region, and will supplement the CCG’s existing fleet during vessel life extension and repair periods
• Conversion work on the second and third interim icebreakers, CCGS Jean Goodwill and CCGS Vincent Massey, continued to progress at Chantier Davie
  • these vessels are expected to enter into service in 2020 to 2021, and will backfill the CCG’s existing fleet during vessel life extension and repair periods to maintain critical levels of service
  • the first interim icebreaker, CCGS Captain Molly Kool, joined the fleet in December 2018
• PSPC continued to work with Transport Canada, CCG, Fisheries and Oceans Canada, Environment and Climate Change Canada, Crown-Indigenous Relations and Northern Affairs Canada and Natural Resources Canada to support the Oceans Protection Plan
  • for example, a $1.2 million contract was awarded to J & J Trailers Manufacturers and Sales Inc., from Scarborough, Ontario, for the acquisition of 23 boom trailers and associated services and products
    • a boom is a temporary flotation barrier used to contain pollution spills in marine waters
    • boom trailers are used to transport booms to locations where they are needed

Contracts awarded by province

Navigation for Canada’s National Shipbuilding Strategy: 2019 annual report

• Previous page
• Table of contents
• Next page