Canada has awarded multibillion-dollar contracts to strengthen its naval capacity, representing a major investment in both military strategy and domestic industry. Major projects were signed last week as Canada looks to modernize and improve its navy.
Investment for New Arctic Icebreakers
Canada plans to build two new Arctic icebreakers in a bid to strengthen its coast guard. The first contract, valued at C$3,2 billion (about $2,2 billion), was awarded to Vancouver-based shipbuilder Seaspan. Construction is set to begin in April and will strengthen the country’s icebreaker fleet.
The second icebreaker was awarded to the Davie Shipbuilding Company in Quebec and will be built in Levis as part of a $3,3 billion deal. This icebreaker is expected to be completed by 2030.
Both companies are contributing to Canada’s National Shipbuilding Strategy to modernize the country’s fleet of warships and non-warships. Seaspan and Davie will also play key roles in the Icebreaker Collaboration Effort (ICE Pact), which promotes cooperation between Finland, Canada and the United States to build advanced icebreakers.
New Warships and Investment
The Canadian government has also signed a contract with Halifax-based Irving Shipbuilding for a new warship fleet. The contract includes three River-class destroyers to be built for the Canadian Navy. The construction cost of the first three ships is estimated to be around $22,2 billion. With this project, Canada will be equipped with modern and versatile ships to ensure maritime security.
Domestic Industry and Economic Impacts
These major investments in Canada's defense industry are also a significant turning point for the country's economy. Minister of National Defense Bill Blair stated that Canadian workers are contributing to the domestic industry and that these projects will contribute to both Canada's defense force and international security.
Additionally, these agreements come at a critical time for Ottawa. Canada entered a trade war with the US last month, with tariffs being imposed on imports from the US. In addition, the country is undergoing significant changes in its domestic political structure, with the Liberal Party of Canada electing new leader Mark Carney to replace Justin Trudeau in the presidential election.
Canada’s defence projects and strategic investments will not only increase military capacity, but will also enable the growth of domestic manufacturers and strengthen the country’s influence in the global arena.
