Canada has awarded multibillion-dollar contracts to domestic shipbuilders to strengthen its 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, valued at CAD 3.2 billion (USD 2.2 billion), was awarded to Vancouver-based Seaspan, which is set to begin construction in April.
The second icebreaker will be built in Lévis, Quebec, by Davie Shipbuilding under a CAD 3.3 billion contract, with completion expected by 2030.
Both companies are key players in Canada’s National Shipbuilding Strategy, a long-term initiative aimed at modernizing the country’s federal fleet of combat and non-combat vessels. Seaspan and Davie have also positioned themselves as integral members of the trilateral Icebreaker Collaboration Effort (ICE Pact), which combines Finnish, Canadian, and U.S. expertise to develop advanced ice-class ships.
Meanwhile, Halifax-based Irving Shipbuilding was awarded a separate contract to build a new fleet of warships for the Canadian Navy. The cost to construct the first three River-class destroyers is estimated at approximately CAD 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 with the modern and versatile ships they need for Canada’s important contributions to peace and security at home and abroad,” said National Defense Minister Bill Blair.
These contracts come at a pivotal moment for Ottawa, as tensions with the U.S. escalate over newly imposed tariffs on Canadian imports.
On March 9, the Liberal Party of Canada elected Mark Carney as its new leader, succeeding Justin Trudeau as prime minister. Carney may call a federal election as early as late April.