The federal government has taken another step toward modernizing the Royal Canadian Navy’s submarine fleet, naming two companies as qualified suppliers for the Canadian Patrol Submarine Project.
But while the decision comes out of Ottawa, its ripple effects are being felt in Victoria.
On Tuesday, Aug. 26, the government of Canada announced that German firm Thyssen Krupp Marine Systems and South Korea’s Hanwha Ocean Co. are now in the running to build Canada’s next generation of submarines.
The new class, expected to be delivered by 2035, will replace the navy’s aging Victoria-class vessels.
Canada purchased the submarines used from the Royal Navy in 1998, with three entering service between 2000 and 2003. A fourth suffered fire damage during its transfer and was not fully commissioned until 2015.
The day after Ottawa’s announcement, Seaspan – which operates Victoria Shipyards at Esquimalt – voiced its support for the program.
For more than 15 years, the company has provided maintenance and repair work on Canada’s existing submarine fleet, building a workforce with specialized expertise that is unique in the country.
“Together with the Navy, we will be developing a strategy and plan to sustain the key elements of this base, as it has taken over 15 years to build the current level of expertise and capability. This will form the foundation of a successful transition into service for the new submarines,” said Dave Hargreaves, senior vice-president of strategy, business development and communications.
That transition is already underway at Victoria Shipyards.
“HMCS Victoria is currently undergoing planned modernization and repairs at Seaspan’s Victoria Shipyards. Seaspan will continue to maintain and service the Royal Canadian Navy’s current fleet of submarines as needed until the new fleet arrives,” said Hargreaves.
While it is too early to project economic benefits tied specifically to the new submarine program, Seaspan’s footprint in Victoria is already significant.
An economic analysis by Deloitte found that since 2012, Victoria Shipyards has contributed more than $1.7 billion to Canada’s GDP while supporting nearly 1,800 jobs annually.
“At this time, we do not have updated economic and employment projections to share, as details of the program have yet to be finalized,” Hargreaves said. “As the program evolves, we will then have a better sense of future employment opportunities and related economic impact to B.C.”
