Year in review: Canada’s National Shipbuilding Strategy—2021 annual report

Navigation for Canada’s National Shipbuilding Strategy: 2021 annual report

In 2021, shipyards continued to face workforce and supply chain challenges resulting from the COVID-19 pandemic. Despite this, progress was made on large and small ship construction projects, as well as ship repair, refit and maintenance projects under the National Shipbuilding Strategy (NSS).

The Government of Canada also made progress towards selecting a third shipyard as a strategic partner under the NSS, to help deliver on the renewal of the Canadian Coast Guard (CCG)’s fleet.

Large ship construction

NSS large ship construction contracts awarded between 2012 and 2021 are estimated to contribute close to $10.63 billion ($967.1 million annually) to the gross domestic product (GDP), and create or maintain 9,110 jobs annually, through the marine industry and its Canadian suppliers, as well as consumer spending by associated employees, between 2012 and 2022.

Projects at Irving Shipbuilding

At Irving’s Halifax Shipyards, design work continued on the Royal Canadian Navy (RCN)’s future Canadian surface combatants (CSCs)—the largest and most complex shipbuilding initiative in Canada since World War II.

In September 2021, a contract was awarded to PCL Construction, of Dartmouth, Nova Scotia, to begin consultation and design work on the future land-based test facility. This infrastructure will be critical in testing CSC combat systems and will ensure the new ships are sea-ready once delivered.

In July 2021, Irving delivered the second Arctic and offshore patrol ship (AOPS), the future Her Majesty’s Canadian Ship (HMCS) Margaret Brooke, to the RCN. This was followed by the launch of the third AOPS, the future HMCS Max Bernays, in October 2021. Construction continued on the fourth and fifth AOPS. In addition, extensive design work was done on the seventh and eighth AOPS for the CCG.

In December 2021, the first AOPS, HMCS Harry DeWolf finished a 4-month circumnavigation of North America, completing its first deployment. HMCS Harry DeWolf travelled from Halifax through the Northwest Passage to Vancouver. It returned home to Halifax via the Panama Canal. During the deployment, the AOPS participated in operations in the Arctic, Eastern Pacific, and Caribbean Sea.

Projects at Seaspan Vancouver Shipyards

At Seaspan Vancouver Shipyards, construction of the RCN’s first joint support ship, the future HMCS Protecteur continued. This project, similar to all NSS projects, extends beyond the shipyard, with several Canadian companies contributing to the effort.

Important milestones were also reached in the CCG’s offshore oceanographic science vessel project. In January 2021, the Government of Canada awarded the build contract to Seaspan, which enabled the yard to transition from the design phase to full construction. Construction of the vessel began in March 2021.

Design work also continued on the CCG’s future multi-purpose vessels. Seaspan will build up to 16 of these vessels, with construction to begin following completion of the joint support ships, the offshore oceanographic science vessel and the polar icebreaker.

Navamar: Shipbuilding and ship repair company in Montréal, Quebec, working on the sea-to-shore connectors for the joint support ships.

Ideal Welders: Metal fabrication company in Delta, British Columbia, working on the bulbous bow for the second joint support ship to be constructed at Seaspan Shipyard.

Polar icebreakers for the Canadian Coast Guard

In May 2021, the Government of Canada announced its plan to build 2 polar icebreakers for the CCG at 2 Canadian shipyards.

1 polar icebreaker will be built at Seaspan Vancouver Shipyards and the other will be built at Chantier Davie in Lévis, Quebec, pending its successful completion of the process to become a third strategic partner for large ship construction under the NSS.

This procurement approach will help to ensure timely delivery of these much-needed vessels to the CCG, while supporting opportunities for small and medium-sized businesses across Canada.

In support of the polar icebreaker program, in July 2021, the Government of Canada awarded a contract to Seaspan to complete a design check and begin preparation for comprehensive construction engineering.

Small ship construction

NSS small ship construction contracts awarded between 2012 and 2021 are estimated to contribute close to $339.4 million ($30.9 million annually) to the GDP, and create or maintain 296 jobs annually, through the marine industry and its Canadian suppliers, as well as consumer spending by associated employees, between 2012 and 2022.

The CCG took delivery of their ninth and tenth search and rescue lifeboats. These vessels were built at Chantier Naval Forillon, in Gaspé, Quebec, and Hike Metal Products Ltd., in Wheatley, Ontario. Each shipyard is building 10 vessels for the Coast Guard.

In addition, the naval large tug project is well underway at Groupe Ocean in l’Isle aux Coudres, Quebec. The shipyard is building 4 new naval large tugs for the Royal Canadian Navy (RCN). These vessels will replace the RCN’s 5 civilian crewed glen-class and 2 fire-class rescue boats.

In December 2021, the RCN announced the names of the future Canadian Forces Auxiliary Vessel tugs:

These tugs will provide important support to enable warship movements and provide fire protection for the RCN’s Pacific and Atlantic fleets.

Refit, repair, and maintenance projects

NSS repair, refit and maintenance contracts awarded between 2012 and 2021 are estimated to contribute close to $10.09 billion ($917.4 million annually) to the GDP, and create or maintain 8,663 jobs annually, through the marine industry and its Canadian suppliers, as well as consumer spending by associated employees, between 2012 and 2022.

Early 2021

In January 2021, the Government of Canada awarded a $16.5 million contract to Zodiac Hurricane Technologies Inc. from Delta, British Columbia, for inspection, repair and overhaul work on the Canadian Armed Forces’ inflatable rubber boats and rigid hull inflatable boats. The essential maintenance and support services provided by this contract, which will be completed on an as-required basis, will ensure the Canadian Armed Forces’ fleet of inflatable boats remains capable of meeting current and future operational demands.

On February 17, 2021, the Government of Canada awarded a contract to Allied Shipbuilders Limited, from North Vancouver, British Columbia, for reconfiguration work on Canadian Coast Guard Ship (CCGS) Sir Wilfred Grenfell. This contract will help create or sustain 140 jobs at the company. Work continued throughout the year and is expected to be completed in 2022.

In March 2021, the Government of Canada also awarded a $20.7 million contract to St. John’s Dockyard Limited (Newdock), for vessel life extension work on 2 ships: the CCGS Cape Roger and the CCGS Cygnus. Work under this contract began shortly after the contract award, and will continue into 2022.

Feature story

Newdock: Shipyard in St. John’s, Newfoundland working on vessel life extension of Canadian Coast Guard Ships Cape Roger and Cygnus.

Summer and fall 2021

In July 2021, the Government of Canada awarded a $2.2 million contract to Canadian Maritime Engineering for inspection, survey, and general refit of the CCGS Samuel Risley.

In August 2021, the Government of Canada awarded a $55 million contract to General Electric Canada Aviation Marine, for in-service support on the RCN’s Halifax-class LM2500 gas turbines. This contract will ensure the ongoing maintenance of the gas turbines until the arrival of the Canadian surface combatants.

In September 2021, a $12 million vessel life extension contract for the icebreaker CCGS Amundsen was awarded to Heddle Shipyards. The work will be completed at their Port Weller Dry Docks, in St. Catharines, Ontario.

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Heddle Shipyards: Shipyard in St. Catharines, Ontario working on vessel life extension of a Canadian Coast Guard icebeaker.

Winter 2021

In December 2021, the Government of Canada announced 4 contracts totalling $77 million for vessel life extension services for the fleet of 36 motorized lifeboats for the CCG. The contracts were awarded to:

Also in December 2021, the Government of Canada announced the award of 7 contracts for refit and vessel life extension on CCG ships. These contracts, valued at a total of over $28 million, awarded to shipyards on the east and west coasts, as well as in the Great Lakes and Quebec regions, provided for maintenance and life extension work on 7 CCGSs:

This refit work helps ensure that the ships remain in good working order and are in compliance with Canadian maritime regulations.

In addition, work continued in support of the Victoria class submarine in-service support contract (VISSC). The HMCS Corner Brook’s undocking was completed on June 13, 2021. This undocking marked the return of Corner Brook to Vancouver Island waters for the first time in almost a decade. It is also the first in a series of milestones required for returning the submarine to operational service. For Canada’s fleet of 4 submarines, VISSC provides:

VISSC has directly supported the Canadian marine industry, with maintenance work on the submarines being largely performed by domestic companies.

Feature story

Ocean Pacific Marine Store and Boatyard: Boatyard in Campbell River, BC performing vessel life extension work on some of the Canadian Coast Guard’s motorized lifeboats.

Selection of a third National Shipbuilding Strategy shipyard

The Government of Canada continued work in 2021 to add a third Canadian shipyard under the NSS. Additional shipbuilding capacity is required in Canada to renew the RCN and CCG fleets, while supporting economic opportunities for the Canadian marine sector.

The third shipyard will build up to 6 new program icebreakers and a polar icebreaker for the CCG, increasing Canada’s capacity to deliver new vessels in a timely manner.

The competitive process to select a third National Shipbuilding Strategy shipyard is similar to the 1 used to select Seaspan and Irving in 2011. In response to an invitation to qualify issued in 2019, Chantier Davie was the only prequalified supplier to proceed to the request for proposal stage.

In July 2021, Chantier Davie submitted their response to a request for proposal. As of December 31, 2021, the evaluation team was continuing to assess Chantier Davie’s proposal, with the final results expected in 2022.

Other marine procurement projects

In 2021, Chantier Davie continued its work to refine the individual designs for 2 new Transport Canada ferries, 1 for each of the Îles de-la-Madeleine, Quebec, to Souris, Prince Edward Island (PEI), route and the Wood Islands, PEI, to Caribou, Nova Scotia, route. The design work on the 2 vessels is ongoing and the delivery of the first vessel is anticipated in 2027.

While work on this project continues, the Government of Canada has acquired an interim replacement vessel for the Îles de-la-Madeleine to Souris route. The Motor Vessel (MV) Villa de Teror, renamed the MV Madeleine II, entered into service on June 1, 2021. It will serve as an interim solution until the new MV Jean Lapierre is delivered.

Navigation for Canada’s National Shipbuilding Strategy: 2021 annual report

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