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Canada Announces CCG Fleet Renewal Including Two New AOPS

There is good news for Canada’s shipbuilding industry as the Prime Minister announced a full renewal of the Canadian Coast Guard fleet. The announcement was attended by the Minister of Fisheries, Oceans and the Canadian Coast Guard Jonathan Wilkinson, Minister of National Defence Harjit Sajjan, President of the Treasury Board and Minister of Digital Government Joyce Murray, Minister of Public Services and Procurement and Accessibility Carla Qualtrough, and Commissioner of the Canadian Coast Guard Jeffery Hutchinson.

The CCG fleet renewal calls for 18 new multi-purpose vessels including two additional Arctic Offshore Patrol Ships. Irving Shipbuilding will build the two new Arctic and Offshore Patrol Ships, which will be adapted for the Coast Guard to perform a range of critical missions, including Northwest Atlantic Fisheries Organization patrols. Seaspan’s Vancouver Shipyards will build up to 16 Multi-Purpose Vessels to support a variety of missions, including light icebreaking, environmental response, and offshore search and rescue.

With the promise of 18 new vessels, the scope of work is much too large for Canada’s two current active shipbuilders said Trudeau. To support future shipbuilding requirements, and attract more talent and good jobs, the Government of Canada intends to add a third Canadian shipyard as a partner under the NSS. The Government of Canada will move forward with a competitive process to select the third shipyard in the coming months.

While Trudeau recognised the opportunity for Davie Shipbuilding to fill this requirement, he stated that the company would have to apply for the position through the competitive process.

“The Canadian Coast Guard saves lives at sea, maintains safe shipping, enables an otherwise ice-choked economy, protects the marine environment and supports Canadian sovereignty and security. With increasing shipping trade and the impacts of climate change already upon us, demands on Canada’s Coast Guard will continue to grow. A renewed Coast Guard fleet ensures the confidence of Canadians, and the confidence of industries that rely on Coast Guard services to remain competitive.” The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard

“The National Shipbuilding Strategy is the right approach to ensure our Coast Guard, Navy and marine activities are supported by modern vessels. In addition to adapting to meet evolving federal shipbuilding requirements, the Strategy is creating jobs, generating benefits and prosperity in communities across Canada, and supporting a sustainable marine sector. We remain firmly committed to the National Shipbuilding Strategy, and will continue to work closely with our shipbuilding partners to continue its success into the future.” The Honourable Carla Qualtrough, Minister of Public Services and Procurement and Accessibility

“The Canadian Coast Guard provides vital services for Atlantic Canadians, keeping our mariners and waterways safe. This investment demonstrates the Government of Canada’s commitment not only to the Coast Guard, but to the National Shipbuilding Strategy, which is providing required vessels for our federal fleets while supporting jobs and economic growth across Canada, including right here in Nova Scotia.” The Honourable Bernadette Jordan, Minister of Rural Economic Development

ADDITIONAL INFO

• The Canadian Coast Guard provides critical search and rescue and environmental response services in Atlantic Canada, with more than 1,900 employees, a fleet of 44 vessels of various sizes, as well as 9 helicopters.

• Search and rescue command centres in Halifax, and in St. John’s, Newfoundland and Labrador, receive more than 2,500 calls annually. In 2018, the Coast Guard’s regional Environmental Response Program in Atlantic Canada received 481 pollution reports that included incidents such as spills, vessels grounding or sinking and large commercial vessels, both foreign and domestic, posing an immediate threat of pollution

• Total funding for the 18 new large ships is $15.7 billion, which represents early estimates of project budgets, including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship will be announced following contract negotiations.

• The government will also proceed through a competitive process with the design of a new class of smaller ships, the Mid-Shore Multi-Mission Ship, which will complement the work of the large fleet in shallow areas and deliver mid-shore science activities.

• Repairs, refits and vessel life extension work will be carried out on the existing fleet until the new ships are delivered, with more than $2 billion to be invested on a competitive basis for this purpose.

• In addition to funding for shipbuilding, the Government of Canada is also providing $351.3 million to support ongoing Canadian Coast Guard capacity enhancements, such as strengthening management oversight and promoting green innovation.

• To date, the Government of Canada has awarded more than $11 billion in NSS-related contracts across the country. Of this value, more than $4 billion, or 37%, has been awarded to companies in Atlantic Canada, including small or medium-sized enterprises with less than 250 full-time employees.

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