Canada unveils shipbuilding plans

CanadaÔÇÖs government has announced a $35 billion, 30-year federal shipbuilding strategy, designed to reinvigorate the sector.  The government will select two Canadian shipyardsÔÇöone to construct large combat vessels, the other large non-combat shipsÔÇöwithin the next two years, with contracts for smaller ships to be opened up for bids by other Canadian shipyards, as part of its National Shipbuilding Procurement Strategy (NSPS). The country will build 28 new large ships over the next few decades at a cost of more than $33 billion, as well as over 100 other smaller ships. The investment is expected to result in thousands of new jobs, with a total of some 75 million man hours of work predicted over the 30-year lifespan of the plan. This not only covers shipyards but some maintenance and construction work also, which will be subcontracted to the wider marine industry and its suppliers. It will, however, take two years for the contracts with the shipyards to be signed, which means construction could be years awayÔÇöespecially as warships in particular often take a decade of planning due to their size, complex designs and high-tech machinery. In a statement, the government said: ÔÇ£The NSPS represents a historic and important shift in shipbuilding procurement, moving from a project-by-project basis to a long-term approach. This approach will generate enhanced regional and industrial benefits and engage Canada's world-class industrial skill-base.ÔÇØ The statement went on to say: ÔÇ£The erosion of Canada's shipbuilding capacity, combined with worldwide increases in shipbuilding costs, could severely hinder Canada's ability to build complex ships cost-effectively, resulting in delays to federal fleet renewal. The time has come to launch a new approach to ship procurement for the Navy. ÔÇ£The NSPS will create and maintain an effective and efficient long-term shipyard capability in Canada. Its development involves a multi-departmental approach in close partnership with key marine industry stakeholders.ÔÇØ It is hoped that the strategy will bring some predictability and even out the cycles of boom and bust within the industry. Since last year the federal government has been trying to draw together a national policy to get major shipbuilding companies working together and becoming more efficient. It has been 14 years since the last major warship was launched in Canada. The 5,100 tonne command-and-control destroyer HMCS Iroquois will soon be the oldest frontline warship in the western world at 38 years old. The navy's two supply ships, HMCS Preserver and Protecteur, turned 40 last year. Several high profile ship replacement programs for both the navy and coast guard have previously been sidelined because cost estimates have come in above what the government was willing to pay. Senior defense officials pledged at the time to restart rejected projects within one year, but found they were held back by the lack of a robust national shipbuilding strategy. Canada currently operates 66 commissioned and auxiliary ships, including Halifax-class multi-role patrol frigates; Victoria-class long-range patrol submarines; Iroquois-class area air defense destroyers; Protecteur-class auxiliary oil replenishment; Kingston- class coastal defense vessels; Orca-class training tenders; and Torpedo and Sound Ranging Vessels.