By Dr. Ann Griffiths, 2 Apr 2024
The original decision to go with two shipyards for the National Shipbuilding Strategy (NSS) was
revised in 2019 when the Canadian government reopened the program to new participants. The
new tender sought yards qualified for icebreaker construction – and Chanter Davie was selected.
And now, after trying for years to get in on the National Shipbuilding Strategy (NSS) to
recapitalize the fleets of the RCN and Coast Guard, Davie Shipbuilding has secured its first NSS
contract. The contract allows Davie to set up project management and design offices for the
Program Icebreaker, build its team and begin talks with subcontractors. While we still wait for
details, the deal’s initial C$8.5 billion phase includes six icebreakers and one polar icebreaker for
the Canadian Coast Guard, plus two hybrid ferries. Whatever the reasons behind the decision –
i.e., whether a flailing government wants to build political support in Quebec or a genuine desire
to get desperately needed ships built – hopefully the result will be ships that are built quickly
and, dare we hope, within(ish) budget.
9 thoughts on “Davie Shipbuilding Gets First NSS Contract”
Like most things regarding shipbuilding and the Canadian Government, the answer is both political support building and a desire to build ships with regard to Davie coming into the NSS. With Irving and Seaspan entirely booked up for the foreseeable future with orders for the RCN and CCG, there is only one notable Canadian yard remaining which can be slotted in to take on the remaining CCG orders. Davie was in a financial mess when NSS was originally put together and thus, was kept out of the system until recently. This was not some dastardly plot to spite the French Canadians but simply the reality that Davie was not suited for important federal shipbuilding contracts at the time, they have since improved and shown their capability. Unless the remaining orders would be outsourced abroad, there is no possible way to have the remaining Polar and Program Icebreakers built within a reasonable timeframe by Irving, Seaspan or any smaller Canadian yard.
Davie is thus the only remaining choice. The fact that a separate second Polar Icebreaker was announced for Davie to build during an election season was pure and simple red meat for the political rat race. Great for Canada and the CCG no doubt but, as many people likely know, Canada rarely doubles a major procurement program out of nowhere. As a whole as well, it’s fairly obvious that like with Irving and Seaspan in their respective provinces, these shipbuilding programs are about developing jobs and thus gaining political support at a local provincial level. I don’t see this as unique to this particular government as I would say that any Federal Government in power would continue the trend of keeping shipbuilding work domestic for all of the financial and political benefits that such a thing brings to Canada.
Yes. It’s good to see progress. Its also curious, and concerning that this first announcement isn’t a build contract for the Polar icebreaker. A few years ago, the government made a big deal about the need for a polar icebreaker to be in service by 2030. Yet neither yard has begun construction, and it’s not clear (at least to me) whether the design has been finalized, or even whether there will be one design or two. The other yards needed four years from the start of construction to deliver the first NSS ship (CCGS Sir John Franklin, Seaspan) or five years (HMCS Harry DeWolf, Irving). The polar icebreakers are to be far larger than either of those vessels (27 800 tonnes, according to Seaspan).
How can Chantier Davie possibly meet its commitment if it does not begin construction immediately?
Let’s not forget that this contract by the government of Canada of some $19.6 million CAD is not one to build the “Program” Class icebreakers but just to finalize the Design Phase much like Lockheed Martin was given the contract for the CSC Frigate Design (which by the way has still not been released because of government secrecy. Let’s hope the CCG is more forth-coming & designed sooner!). These 6 Program Icebreakers will replace CCG’s medium Icebreakers that operate mainly in Atlantic Canada, the Great Lakes and in the Arctic during the Summer months only. They will perform ice-breaking services, escort ships through ice-covered waters and help clear ice from harbours and wharves. In the Arctic, during Summer months only, they will provide ice-breaking support to ships. These 6 icebreakers will not be designed for year-round ice-breaking operations in the high Arctic.
There are some general specs with regard to Davie’s brochure for the six ships. They will be between 100-110 meters long; a beam of under 23.8 meters; a draft of 6-8 meters; able to break through 1.4 meters of ice while maintaining 3 kts. They will have general & containerized cargo capacity. They will have a crew of 30+ with “program” teams of 34 personnel. They will be able to operate and maintain one medium CCG helicopter. Total weight has not been established however, I suspect between 8-10000 tonnes. It is a good starting point for the third NSS Yard, however, will Davie be able to build these ice-breakers and the Polar Class before 2030? It will be a long-shot at best.
Yes, although the polar icebreaker was the government’s stated priority, neither Seaspan nor Davie appears on track to deliver in 2029 for entry into service in 2030. The vessel would need to launch in 2028; if they started cutting steel tomorrow, they would have to be finished the land-based work within four years. Seaspan appears to be better positioned, since it has long since completed its main facilities upgrades, hired a large number of staff, has established current production systems, and is actively engaged in newbuild construction. On the other hand, they have already taken more than four years on the first JSS and nearly that on the much smaller oceanographic science vessel. Suppose this year they manage to launch both those, begin assembling the second JSS, and cut steel on the icebreaker. They will not have enough skilled staff to fit out two unique and complicated ships, and assemble two huge ships at the same time. The schedule for the icebreaker will slip, with delivery probably around 2032 or later.
The situation at Davie seems likely to be worse. There’s a reason they boast about hundreds of years of shipbuilding at that location: aside from repairs and conversions, they can’t boast of any recent achievements. A plan for enormous facilities upgrades was announced a couple of years ago; but there has been no announcement that the upgrades have been completed. In addition, beginning newbuild work while maintaining their current schedule of ship repairs requires hiring and training a huge number of staff and reinventing production processes that have been largely idle for most of the careers of most of the current staff. This is a hard and time-consuming job. Furthermore, without a contract in hand or a formal design approval, Davie cannot have ordered any long lead-time items. Conclusion: Davie is nowhere close to being ready to start work, except maybe at a pilot scale pace. Assuming they prioritize the polar icebreaker, they will be doing well if it enters service by 2035.
Both yards have, in addition to the polar icebreaker, a considerable backlog of other orders: at least 15 multi purpose vessels for Seaspan; 6 program icebreakers and two ferries for Davie. To all appearances, they are fully booked through the mid 2040s. Yet it seems likely that there are ships required under the national shipbuilding strategy that have not yet been ordered. The most obvious is the replacement for the Kingston class vessels. When the NSS was initiated there were questions whether Canada had enough shipbuilding work to sustain two yards; it now appears likely that four partner yards are required on a permanent basis. It seems our under-investment did not begin in the 1990s but in the 1960s. We have been coasting for many decades based on the work done by our grandfathers.
Update: the following from Davie confirms that construction has not yet begun on the upgrades to their faciltities. Notwithstanding the positive spin, this confirms that there is no hope of achieving an in-service date for the icebreakers anywhere close to 2030.
https://www.davie.ca/news/smooth-sailing-for-chantier-davie-modernization-project/
https://www.davie.ca/fr/nouvelles/la-modernisation-de-chantier-davie-suit-son-cours/
Thank you Michael.
Ubique,
Les
Further update: Seaspan has published its first quarter report. It looks close to what they said previously: the OOSV should be launched in late summer. The joint support ship is expected to be launched “by the end of the year” – this feels like a change from “in late 2024” at the last report and suggests some further schedule slippage. Maybe expect it in 2025, with knock-on delays to the other projects.
Major maintenance work on HMCS Calgary (frigate) and HMCS Victoria (submarine) is also ongoing. There as well the wording suggests some schedule slippage, though nothing unusual.
https://www.seaspan.com/stories/seaspan-shipyards-q1-update-ready-to-go/
Thank you once again Michael for keeping eye open for these updates and sharing them.
Ubique,
Les
Integrating Davie is taking longer than I expected. A lot of work is out there though on icebreakers and other ships whether it’s Vard or Acker. I expect the Polar will be built first as all the work should be done on it and Seaspan has already started the module prototype. Still should grab the Aiviq if the US doesn’t get it done soon.