With many vessels delivered and many more under construction, NSS is hitting its stride.

BY JOETEY ATTARIWALA

The National Shipbuilding Strategy (NSS) is a complex initiative, bringing together government, military, industry and multiple other stakeholders to create a sustainable Canadian shipbuilding industry. Investments made under the NSS support the growth of the broader marine industry across the country, such as advancements in industrial capabilities like combat systems integration, mission and platform systems, engineering services, in-service support, and training. For this feature, CDR reached out to the 3 primary NSS shipbuilders to get an update on their respective projects, and we also reached out to subcontractors for their perspective.

DAVIE SHIPBUILDING

In 2012, the announcement that Davie Shipbuilding had been acquired by Inocea Group, a leading international marine, defence, and industrial group was met with skepticism. Today, Davie has the world’s largest order book of heavy icebreakers and has recently acquired Finland’s Helsinki Shipyard, the world’s leading icebreaker builder.

Davie has marked many industry milestones since 2012. This includes delivering ground-breaking vessels such as a highly complex subsea construction vessel, North America’s first dual-fuel ferries, interim medium icebreakers for the Canadian Coast Guard (CCG) and essential life extension work on Canada’s Halifax-class frigates. Davie has now entered a new era by integrating into the NSS in April 2023, where it will build 1 of 2 polar icebreakers, and 6 program icebreakers for the CCG.

With a confirmed NSS order book extending until at least 2040, Davie has shifted from a project-based to a programmatic operating model. This transition will facilitate increased efficiency and empower Davie to invest, with the support of the Québec government, $840 million over the coming years, thereby expanding its production capabilities. According to the company, these planned enhancements are expected to establish Davie’s Lévis facilities as the most versatile and technologically advanced shipyard in North America, positioning it with ample capability to take on additional projects from both governmental and commercial customers.

“Joining the National Shipbuilding Strategy was a pivotal moment not just for Davie but Canadian shipbuilding as a whole. Our primary focus is to construct the fleet of Arctic-ready icebreakers, which will serve Canada’s growing priorities in the North while providing years of work to thousands of Canadian suppliers,” said James Davies, President and CEO of Davie Shipbuilding.

The NSS will also bring structural benefits for the Canadian economy. Research by Deloitte estimated Davie will contribute up to $11.2 billion on Canada’s GDP and create up to 4,700 direct and indirect jobs through its NSS work alone.

Davie’s capacity, capability and international impact is now enhanced by the recent addition of a whole new entity to the company — Finland’s Helsinki Shipyard — cementing Canada as the headquarters of the global leader in Arctic shipbuilding, opening avenues for transatlantic exports. Not only will this help get urgently needed ships into service quicker, it will also accelerate the development of Canadian shipbuilders and the industry as a whole, with the potential for suppliers to secure more export opportunities. This acquisition positions Davie to successfully deliver the most ambitious icebreaker newbuild program in Canada’s history.

Davie also remains dedicated to its current repair and maintenance work. The delivery of HMCS St. John’s to the Canadian Navy in late 2022 marked a milestone, being the first time in over 20 years that the ship’s systems were reactivated at a shipyard, enabling her to leave under her propulsion rather than being towed. Currently, Davie is actively engaged in a docking work period on HMCS Toronto, necessitating extensive maintenance and modernization efforts. Looking ahead, the company is eager to welcome the CCGS Louis S. St-Laurent for a docking work period in the coming months.

IRVING SHIPBUILDING

Irving Shipbuilding Inc. (ISI) was awarded what’s referred to as the “combat package” in NSS, which includes the build of the RCN’s and CCG’s Arctic and Offshore Patrol Ships (AOPS), and the Canadian Surface Combatant (CSC). Other work under NSS includes the maintenance and repair of some Halifax-class frigates.

Currently at ISI is HMCS Halifax, whose docking work period is on track, and follows HMCS Ville de Québec. Speaking to CDR was Parker Larson, VP Programs at Irving Shipbuilding. “The big takeaway right now that we’re seeing on the Halifax-class frigates is that obviously, the ships are aging, and as they’re aging, we’re seeing quite a bit of growth in the amount of work that it’s taking to sustain them. Given the growth that we’re seeing, we’re collaborating with Canada on ways that we can do a lot more work in the same amount of time with the same amount of people. The reason for this, and the reason that we’re looking at this differently, is that each docking has gone from normal cycles where you find the work and you repair it, to much larger scopes of work that we think can be done much more efficiently. So right now, we’re working with Canada, the other shipyards, and Fleetway, who’s the design agent, to think of ways that we can actually achieve much, much greater efficiency to make sure that we’re maintaining these ships and increasing operational availability for the Navy.”

Irving delivered the 4th AOPS, HMCS William Hall to the RCN in August 2023, and is currently building AOPS 5, 6 and 7, with the latter being the first AOPS for the CCG.

“The big takeaway right now on AOPS for us is that we are on or ahead of schedule on all ships. So, for example, on AOPS 4, that was delivered two months early to Canada. We’re projecting AOPS 5 will deliver roughly four months early, and we’re going to continue making sure that we’re staying on or ahead of schedule, and for us that’s a very significant deal,” Larson told CDR. “The other big thing that we’re doing is we’re looking to reduce the total cycle time between ships 4 and 5 by twelve months. So, if you look at the amount of time it took between cut steel and ship delivery, ship 4 took fifty-one months, and right now we’re on pace to reduce the total cycle time on ship 5 down to thirty-nine months. That’s an indication of NSS working, the people in place, the facility working… We’re very excited about the progress we’re making on AOPS.”

The largest and most complex build that Irving will undertake under NSS is the CSC, which arguably is the most complex shipbuilding initiative in Canadian history. According to Irving, CSC is currently in the design process and the plan is to start the full rate build in April 2025.

“Right now, we’re in the design phase and we’re progressing. On that we’re like every major program — we’re looking to go faster in the design maturity phase,” said Larson. “The other thing to note on CSC is that we’re actually starting a production test module in July. So, these are effectively the first actual parts of CSC that we’re building in advance of the full rate build, where we build various structural sections and some sections with outfit ahead of construction so that we can take advantage of lessons learned — from building the ship itself, the flow of the data, and information that’s used to feed that build.”

As it stands today, the CSC will be built in batches, with the first batch consisting of 3 ships, for which Irving believes they will be under contract later this year. The first CSC is projected for initial acceptance in the early 2030s.

To carry out the build of CSC, Irving has acquired funding to further expand its shipyard creating approximately 13 acres of additional yard space. “Effectively, what it does is it expands our land level so that we have more capacity for the ships when they exit the building, and then we have an ability to put them into the water which we’re going to do via a ship lift. Right now, I would say we’re in the relatively early stages of those projects but they’re on budget and on schedule,” said Larson.

A number of contract announcements are forthcoming in the months ahead, with Bronswerk Marine recently receiving two contracts which combined are worth over $100 million.

SEASPAN SHIPYARDS

2023 was a pivotal year at Seaspan Shipyards for construction of the Royal Canadian Navy’s new supply ships, the Canadian Coast Guard’s most modern science research vessel, and on the design and development of the Polar Icebreaker and the Multi-Purpose Vessel program.

According to Seaspan, the shipyard has been executing a continuous improvement plan to aggressively improve efficiency and quality throughout the construction of these vessels with advancements in 3D design and prototyping, advanced robotic welding, and automated steel cutting.

Last year, Seaspan engaged Deloitte Canada to conduct an updated socio-economic report to determine the quantifiable impact that Seaspan’s work is having on the Canadian economy. Speaking to that was Martin Edwards, Chief Program Officer, Seaspan Vancouver Shipyards. “It is easy to see the impact the National Shipbuilding Strategy is having on the ground every day, speaking with suppliers and Canada, and seeing how this industry has evolved over the past decade, but having the actual figures is just further proof of the strategy’s success. On a national level, Seaspan Shipyards is poised to contribute $20.7 billion to Canada’s GDP from 2023-2035, while creating or maintaining nearly 11,000 annual jobs.”

The first Joint Support Ship (JSS), the future HMCS Protecteur, reached full consolidation and all major blocks were installed by fall 2023 — the final major block installation was the ship’s kingposts, key to the ship’s Replenishment at Sea (RAS) capability. Focus now has shifted to outfitting of the vessel and Seaspan is preparing the ship’s launch with delivery to the Navy in 2025.

For the second Joint Support Ship, the future HMCS Preserver, Seaspan was pleased to hold the ship’s keel laying ceremony in October 2023, which kicked off the next phase of the ship’s construction. Block construction and grand-blocking continues at a steady rate, with the ship’s Bulbous Bow to be delivered to Vancouver Shipyards in early 2024 by local company Ideal Welders. Construction on the hull of the ship will continue throughout the year and into 2025. “We are seeing significant efficiency improvements versus the first Joint Support Ship demonstrating our trajectory of improvement,” said Edwards.

Seaspan is also full steam ahead on the construction of the Canadian Coast Guard’s newest science research vessel, the Offshore Oceanographic Science Vessel (OOSV). This ship will serve with the CCG and will also be the primary oceanographic science platform for Fisheries and Oceans Canada. Like JSS1, the OOSV also reached full consolidation in late 2023, and Seaspan is preparing this vessel for launch this year.

“Through lessons learned on delivering three vessels to the Coast Guard already, in addition to efficiencies we have found during the construction of the first Joint Support Ship, we are seeing a marked increase in shipyard performance on the second JSS and on OOSV. We are continuing down this path of continuous improvement which will make Seaspan one of the most modern, most efficient and most capable shipyards in Canada,” Edwards told CDR.

Seaspan’s production and engineering teams continue to push forward with preparations for the construction of the Coast Guard’s new Polar Icebreaker, and sixteen Multi-Purpose Vessels. Just before CANSEC, Seaspan began construction on a Prototype Block for the Polar Icebreaker, which allowed them to test new systems and technology required for working with the type of steel required for a Polar class 2 icebreaker. The steel being used for this ship is much thicker than the steel on some of the other ships that Seaspan has built.

“It is incumbent on us to ensure our production and engineering teams have an opportunity to work collaboratively and get a hands-on opportunity to work with this steel before beginning construction on the actual vessel itself,” said Edwards. “We will be cutting steel on the Polar Icebreaker later this year.”

The Multi-Purpose Vessel has just passed Basic Design review with the Coast Guard, so Seaspan is moving ahead to the next phase of designing that vessel for construction.

NSS TAKES A VILLAGE

Much of the press regarding the NSS naturally goes to the 3 biggest shipbuilders, however there are many subcontractors who also benefit from the Strategy. To get further perspective on the NSS, CDR reached out to the Canadian Marine Industries and Shipbuilding Association (CMISA) which was established to provide a nation-wide forum to unite and empower the Canadian marine and shipbuilding sector, to foster growth through collaboration and innovation, and to advocate for the entire industry with all levels of government.

“CMISA seeks to add to our collective economic prosperity and to promote the establishment and support of a vibrant domestic shipbuilding and marine products and services capability,” said Darcy Byrtus, Chairman of the Board, CMISA. “The National Shipbuilding Strategy has been a key element of the rebirth of the greater marine industry and has provided opportunities for Canadian marine industry systems and equipment suppliers, technical services and of course shipbuilding itself. While the projects under NSS have benefited different Canadian companies to different extents, these projects and Canada’s long-term commitment to a sustainable marine sector are encouraging industry to invest in building long term sustained capabilities and capacity to leverage Canadian shipbuilding and marine suppliers for both the domestic and export markets… The NSS investment is energizing Canada’s marine industry and is critical for the shipbuilding opportunities that will follow the current programs to avoid the boom-and-bust cycle that has been characteristic of the sector in so many places around the world.”

As part of the NSS, Lockheed Martin is providing the Combat Management System for the Royal Canadian Navy’s fleet of ships. The system is based on Lockheed Martin’s CMS 330 and will deliver a range of capabilities including integration of weapons and sensors to the collation of data to manage the maritime picture, providing real time threat and environmental data. Together with prime contractor Irving Shipbuilding, Lockheed Martin’s staff of Engineers and Developers are supporting the delivery of Canada’s new Arctic and Offshore Patrol Ships (AOPS); and is the combat systems integrator for the Canadian Surface Combatant (CSC).

“From a defence industry perspective, the National Shipbuilding Strategy contributes to job creation, and generates economic benefits and prosperity to every region of the country. Our industry is innovative, employing advanced skillsets from professionals in science, technology, engineering and mathematics fields. Distributed and virtual environments allow our engineers researchers to develop and support the RCN ships collaboratively from our sites in Victoria, Ottawa, Montreal and Halifax,” said Glenn Copeland, General Manager Lockheed Martin Canada RMS.

OSI has been operating since the 1970s and began its relationship with the RCN in the 1990s, starting with installing the Company’s ECPINS naval navigation system. Today, the Company is recognized as the global leader in Integrated Navigation and Tactical Systems for warships and is the leading specialist in the Submarine Dived Navigation space. 

Canada’s NSS has contributed to OSI’s success. OSI was awarded contracts to deliver Integrated Navigation and Bridge Systems (INBS) to the Royal Canadian Navy for the AOPV, Resolve-class AOR MV Asterix, the JSS and the CSC.

A clear opportunity was recently set for OSI in the global Coast Guard market by signing the delivery contract for the two INBS for the future CCG AOPS vessels. Now, the Company’s ambition is to take that competitive model into the global market.

“NSS has contributed to creating high-quality jobs in Western Canada and has supported OSI’s international expansion strategy,” said Simon Wills, Director Government Relations, Marketing & Communications, OSI Maritime Systems. “In fact, the Company has grown globally by 600% since its involvement in the NSS program in 2013, with a 400% expansion in Canadian jobs alone. In sum, NSS represents more OSI markets and new jobs for Canadians.”

Thales Canada has played a vital role in the NSS since 2012. It is both a trusted Tier-1 Electronic Systems Integrator (ESI) for Canada’s non-combatant fleets and a leading provider of in-service support (ISS) under the repair, refit and maintenance pillar. 

Thales designed and developed the electronic systems for the offshore fisheries science vessels (OFSV) and the OOSV. The three OFSVs have been accepted by the CCG and are in-service, and the OOSV is now in production with its major systems, such as the integrated bridge, being installed in Seaspan’s Vancouver shipyard. In the meantime, Thales is well into the production phase on electronic systems for the JSS.

“We’re not just building the digital hearts of Canada’s new fleet,” says Chris Pogue, Thales Canada’s CEO. “Working with more than 70 suppliers across eight provinces, we’re also developing Canadian talent and creating jobs — the very things that will make the NSS everything it was intended to be.”

Last July, the government awarded Thales the ISS contract for minor warships and auxiliary vessels (MWAV). Adding to its ISS responsibility for the AOPS and JSS — known as AJISS — Thales is entrusted with the readiness of more than 100 vessels spanning 26 classes, having emerged as the RCN’s foremost ISS provider.

Pogue zeroes in on collaboration in almost every NSS context. He points, for example, to Thales’ partnership in Team Vigilance, which in 2023 introduced a vessel design for a new class of Navy ship that would support the second pillar of the NSS and activate Ontario’s industrial sector.

He also highlights Thales’ engagement with the Malahat Nation on its new west coast center of operations, slated to open in 2024. “Maybe more than anything, the journey we’re embarking on through AJISS with the Malahat Nation, our partners, suppliers and the Navy illustrates the best of the growth and diversification that the NSS aspires to create.”

Vard Marine is involved in nine of ten major programs for NSS and is a reference player in naval offshore patrol and amphibious/naval auxiliary vessels internationally. Vard played a key role in designing the OFSV and OOSV built by Seaspan. The VARD 7 100 ICE AOPS is a formidable new capability for the RCN, excelling in ice performance and range/endurance, reinforcing Canada’s sovereignty in the Arctic and of which the fifth vessel was launched last month at Halifax Shipyard. Vard is also contributing to the development of Canada’s most powerful conventional polar icebreaker, formerly known as the Polar 8 project.

Vard’s current NSS projects include: supplier of design and engineering services to Vancouver Shipyards supporting their newbuild programs; a supplier under the Design, Engineering, Logistics and Management Support contract for AOPV; approved supplier for the Arctic and Offshore Patrol Ship/ Joint Support Ship In-Service Support contract; approved supplier for the Minor Warships and Auxiliary Vessels In-Service Support contract; Canadian Coast Guard’s Engineering Support Services as prime contractor (Central Work Package).

“We are thrilled to be involved to the extent we are on the NSS and take seriously our role in helping deliver badly needed new capability to the CCG and RCN. If leveraged to the fullest extent possible, the NSS is a real game-changing policy framework that stands to greatly benefit all players in the Canadian marine industry,” said Derek Buxton, VP Business Development, Vard Marine. “Providing opportunities for small and medium enterprises that cover all stages in the shipbuilding value chain from design through delivery, will result in maximum economic benefit for Canada and provide the springboard needed for many Canadian companies to achieve global success.”

WHAT’S NEXT?

The goal of the National Shipbuilding Strategy was to rebuild Canada’s maritime industry and Canada’s shipyards so that the industry can be self-sustaining. The next phase will be for industry to have the ability to deliver ships faster and more efficiently into the 2030s and beyond. An imperative will be for Canada to have the ability to build and repair its own fleet of vessels, so as additional vessels within Canada’s (or other allied countries’) fleet need to be replaced, Canadian shipyards will be able to bid on the projects armed with the necessary expertise and infrastructure to deliver on those requirements as they come up.

From a defence perspective, major RCN recapitalization efforts yet to be competed include the replacement for the Kingston-class, Victoria-class, and numerous support vessels.

Vard Marine led the launch of the Vigilance Next Generation Naval Vessel at CANSEC 2023 alongside four other companies (Ontario Shipyards, Thales, SH Defence, and Fincantieri) offering a “designed in Canada, built in Canada, equipped in Canada” solution to replace the Kingston-class Maritime Coastal Defence Vessels (MCDV).

All shipbuilders are eyeing such opportunities, and companies like Davie Shipbuilding are already engaged in bringing a Canadian solution to projects like the eventual MCDV recapitalization.

Joetey Attariwala is CDR’s Senior Staff Writer