National Shipbuilding Strategy: Standing Committee on Government Operations and Estimates—July 23, 2020

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Context

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

Key message

The government is delivering on its commitment to continue to renew the RCN and the CCG fleets, revitalize the shipbuilding industry across Canada, create middle-class jobs, and ensure Canada’s marine services have the modern ships that they need.

Progress on current work

Third yard

Opportunities for other yards / Chantier Davie

If pressed on the polar Icebreaker:

If pressed on interim icebreaker capacity for CCG:

If pressed on JSS (Note: Questions related to the budget for the project and technical requirements (including the design requirements) should be referred to the minister of National Defence):

Background

Contracts under the National Shipbuilding Strategy

From 2012 to the end of 2019, the government signed approximately $13.78 billion in new NSS contracts throughout the country. These contracts are estimated to contribute over $17.04 billion ($1.54 billion annually) to gross domestic product (GDP), and create or maintain more than 15,521 jobs annually, through the marine industry and its Canadian suppliers between 2012 and 2022.

Table 1: National Shipbuilding Strategy contracts awarded 2012 to the end of 2019

Irving Shipbuilding Inc. (ISI)

Seaspan’s Vancouver Shipyards (VSY)

Chantier Davie

Other shipyards/companies

$4.74 billion

$1.84 billion

$2.05 billion

$5.14 billion

Table 2: Project budgets and delivery dates

Vessel

Delivery date

Budget

Offshore fisheries science vessel (OFSV) 1

June 27, 2019

$687 million

OFSV 2

November 29, 2019

$687 million

OFSV 3

Summer 2020

$687 million

Joint support ship (JSS) 1

2023

$4.1 billion

JSS 2

2025

$4.1 billion

Offshore oceanographic science vessel (OOSV)

2024

$331 million (under review)

Arctic and offshore patrol ship (AOPS) 1

2020

$4.3 billion

AOPS 2

Late 2020

$4.3 billion

AOPS 3

Fall 2021

$4.3 billion

AOPS 4

Fall 2022

$4.3 billion

AOPS 5

Summer 2023

$4.3 billion

AOPS 6

Winter 2024

$4.3 billion

AOPS 7

Winter 2025

$1.5 billion (estimate)

AOPS 8

Fall 2025

$1.5 billion (estimate)

Canadian surface combatant (CSC)

15 CSCs between 2020s to 2040s

$56 to 60 billion (estimate)

Multi-purpose vessel (MPV)

Up to 16 MPVs starting in late 2020s

$14.2 billion (estimate)

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