MILAN — Canada has awarded multibillion-dollar contracts to domestic shipbuilding manufacturers in an effort to boost the country’s naval capabilities with new polar icebreakers and warships.
The federal government announced plans last week to construct two new Arctic icebreakers for the Canadian Coast Guard. The first contract, worth Canadian $3.2 billion (US$2.2 billion), went to Vancouver-headquartered Seaspan, which is set to begin the construction process in April.
The second icebreaker will be built in Levis by the Quebec shipbuilder Davie as part of a $3.3 billion deal. It is expected to be completed by 2030.
Both companies are key players in Canada’s National Shipbuilding Strategy, a long-term project seeking to modernize the country’s federal fleet of combat and non-combat vessels.
Seaspan and Davie have both positioned themselves to play important roles as part of the trilateral Icebreaker Collaboration Effort, or ICE Pact, which seeks to combine Finnish, Canadian, and U.S. expertise to build advanced ice boats.
While the U.S. has not yet clearly defined its icebreaker requirements and industry strategy, President Donald Trump has said he wants to buy 40 new ones.
Another contract announced last week was to Halifax-based Irving Shipbuilding for a new fleet of warships destined for the Canadian Navy. The cost to build the first three River-class destroyers is of approximately $22.2 billion, excluding taxes, according to the Canadian government.
“By investing in our own industry, Canadian workers are helping to build the fleet of the future, equipping the Navy and our members in uniform modern and versatile ships they need for Canada’s important contributions to peace and security at home and abroad,” National Defense Minister Bill Blair said.
These contracts come at a critical time for Ottawa. Over the last month, it has been battling a trade war with its southern neighbor following the imposition of U.S. tariffs on imports from Canada.
On March 9, the Liberal Party of Canada selected Mark Carney as their new leader, succeeding Justin Trudeau as prime minister. The new leader could call for a federal election as early as late April.
Elisabeth Gosselin-Malo is a Europe correspondent for Defense News. She covers a wide range of topics related to military procurement and international security, and specializes in reporting on the aviation sector. She is based in Milan, Italy.
