By Jeff Gilmour, 7 August 2026
Under the 2010 National Shipbuilding Strategy (NSS), Irving Shipyard was awarded a contract by the federal government to build 15 River-class destroyers to replace the RCN’s ageing frigates. They will be equipped with advanced radar systems and missile capabilities in one of the country’s most significant military manufacturing programs. The keel-laying ceremony for the first ship of its class, HMCS Fraser, happened on 12 June 2026.[1]
In 2022, the Parliamentary Budget Officer (PBO) estimated the cost of this project to be $84 billion. In March 2025, the Canadian government purchased three River-class destroyers from Irving for an estimated $8 billion implementation contract covering the cost for the first six years of construction. The total project cost for the first three ships is estimated to be $22 billion (excluding taxes).[2]
The first ship is scheduled to be launched in the 2030s with nine expected to be in service by 2040 and the entire fleet sometime by 2050.[3] Based on the contract price for the first three ships, is it not reasonable to assume that the cost of this project could escalate to $110B before all 15 ships are built?
In early July 2026 the federal government announced that it would begin discussions to purchase 12 submarines from Thyssen-Krupp Marine Systems (TKMS) of Germany under the Canadian Patrol Submarine Project (CPSP). The initial acquisition and design phase is estimated around $24B. But adding maintenance, lifecycle support and specialized infrastructure means that the total program cost is projected to exceed $70B to $100B. The formal contracting is scheduled to be completed by the end of 2027, with the first four boats to be delivered at the beginning of 2034.
On the basis of these two major naval procurement projects, the total costs will likely exceed $200B. One has to wonder whether the RCN actually requires 15 destroyers and 12 submarines to fulfil its mandate.
A number of questions concerning these two major contracts for the RCN should first be addressed:
1. Can Ottawa afford to spend over $200B on both these projects?
2. Can the RCN provide the necessary manpower for both projects?
3. At present, the RCN operates four submarines; two for each coast. Do they now need six submarines?
4. The Ukraine war has revealed how vulnerable surface fleets are to both enemy surface and sub-surface drones and hypersonic missiles.
5. The last destroyer will not be commissioned until the 2050s. Is this timeline reasonable in the construction of ships being built in this country vs off-the-shelf purchases from other countries.
6. How effective will both the destroyers and the new submarines be in operating in the high Arctic?
It is suggested here that the federal government may wish to pause on the completion of these two major projects for the RCN on the basis of costs, actual needs and requirements and completion schedules.
[1] Calgary Herald, “Battleship”, G. MacDonald, August 1, 2026, p. E1.
[2] AI Overview
[3] Ibid; footnote 1.
Image: The latest rendering of the River-class destroyer, posted by ADM (MAT) on LinkedIn in April 2026 following progress on the ship's design review. Credit: Assistant Deputy Minister (Materiel)
