Kevin Dougherty
Shipbuilding firm will start work on icebreaker conversion this summer
Chantier Davie Canada Inc., the country's largest shipbuilding firm, is gunning for contracts to build new icebreakers for the Canadian Coast Guard.
"Given the age of the Canadian Coast Guard fleet, the entire icebreaker fleet will need to be replaced in the near future," says Alex Vicefield, CEO of Inocea Group, which has owned Davie since 2012.
"We have every intention of submitting a world-class proposal together with global leaders in icebreaker design."
Until then, Davie, located across the river from Quebec City in Lévis, is in the home stretch of negotiations with the federal government to convert three surplus commercial icebreakers for the Canadian Coast Guard.
Under its new management, Davie has made its mark in the industry by turning surplus ships into lower-cost solutions.
The first converted icebreaker will be ready in time for the 2018-2019 ice season on the St. Lawrence and Great Lakes.
However, when it comes to building new ships, there remain doubts about Davie's ability to deliver at a competitive cost.
Canadian ships cost 'twice as much'
Marc Gagnon is director, government affairs and regulatory compliance for the Montreal-based Fednav, which operates a fleet of nearly 100 ships.
Fednav buys its ships in Japan because, Gagnon says, Canadian-built ships cost "at least twice as much."
"Davie no longer has the capacity to build an icebreaker or a frigate," Gagnon said. "To do so, they would have to re-equip their shipyard."
Vicefield said Davie is aware of the challenges ahead and has invested $60 million to upgrade its steel-cutting and IT infrastructure.
The University of British Columbia's Michael Byers, who argues that Ottawa's current shipbuilding strategy is too costly and needlessly slow, says building government ships in Canada makes sense and Davie is definitely up to the task.
"For every $100 million that is spent on building a ship in Canada, you would get several times more than that in terms of knock-on economic activity," Byers said.
"And Davie is the logical place to do it. They have a very large shipyard. They have a very capable workforce. The labour costs are relatively low and it's an active shipyard."
Asterix 'very impressive'
Last year, before Ottawa agreed to sit down with Davie to discuss the icebreaker conversions, Davie delivered the Asterix — a container ship converted into a supply ship for the Royal Canadian Navy — on time and on budget.
In 2015, when the navy's existing two supply ships were no longer seaworthy, Vicefield and his team proposed converting the Asterix to a naval supply ship for about $600 million.
"What they did with the Asterix was very impressive," Byers said. "There is no other shipyard in Canada that could have done that."
In comparison, Vancouver-based Seaspan was chosen to build two new navy supply ships for $2.6 billion. But the first new supply ship will only be ready in 2020.
"This is a cutthroat business and there is a lot of money involved and a lot of politics involved," Byers said.
"Davie has the capacity and the experience to build icebreakers, plus they have the lowest costs in terms of labour of any shipyard in the country," he said.
The Canadian Coast Guard has an aging fleet of 13 ice-breaking vessels and two hovercraft.
Ice still a hazard to navigation
Canada's oldest and largest icebreaker, the CCGS Louis S. St-Laurent, was commissioned in 1969.
It was to be replaced in 2017 by the CCGS John G. Diefenbaker.
But from the initial estimate of $720 million, the Diefenbaker is now expected to cost over $1.4 billion, with delivery in 2022.
To meet Ottawa's need for "interim icebreakers," Davie found four icebreakers built for oil and gas drilling off the coast of Alaska that were idled when oil prices fell, putting an end of Shell's Arctic venture.
Prime Minister Justin Trudeau agreed to negotiations with Davie to acquire the three smaller ice-breaking vessels, leaving aside the larger Aiviq.
With no other shipyard matching Davie's proposal, the conversion work will begin this summer.
July 15, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
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October 10, 2018 | Local, Aerospace, Naval, Land, C4ISR, Security
News release October 9, 2018 – Ottawa – National Defence / Canadian Armed Forces Canada and Mexico share a common interest in addressing issues of mutual concern, in order to advance our respective nations' security and prosperity. Both countries are committed to establishing stronger defence ties and enhancing hemispheric relations. Canada's support to the Americas is multifaceted, helping contribute to the safety and stability of the region, while adhering to and exemplifying the values of Canadians. Highlighting those mutually shared priorities, Defence Minister Harjit Sajjan today signed the Canada-Mexico Defence Cooperation Arrangement with General Salvador Cienfuegos Zepeda, Secretary of National Defense and Admiral Vidal Francisco Sob‎erón Sanz, Secretary of the Navy. The signing of a bilateral Canada-Mexico Defence Cooperation Arrangement is an important step forward in the evolving Canada-Mexico relationship. This Defence Cooperation Arrangement will provide a mechanism to further collaborate in a number of key areas, including defence education, training, and capacity building; defence materiel; peace support operations; and humanitarian assistance and disaster relief. Quotes "Canada and Mexico enjoy a close partnership, including strong defence ties. Canada welcomes the signing of this Defence Cooperation Arrangement with our friend and hemispheric partner, Mexico, on the margins of a successful Conference of Defense Ministers of the Americas. ‎We look forward to continuing to work with Mexico to advance our shared defence priorities." Harjit S. Sajjan, Defence Minister Quick facts The Canada-Mexico Defence Cooperation Arrangement was signed on the margins of the Conference of Defense Ministers of the Americas held in Mexico from October 7 to October 10, 2018. Both Canada and Mexico's commitment to establishing stronger defence ties has resulted in measured progress in defence engagement over the last few years including high-level visits, strategic and operational dialogue, and training opportunities. Mexico has been a member of the Military Training and Cooperation Program (MTCP) since 2004. For 2018/19, 73 MTCP course allocations to Mexico are planned, subject to in-year change, including senior staff positions on the prestigious National Security Program, Joint Command and Staff Program, and Army Operations Course. Associated links Canada – Mexico Relations Contacts Byrne Furlong Press Secretary Office of the Minister of National Defence Phone: 613-996-3100 Email: byrne.furlong@forces.gc.ca Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2018/10/government-of-canada-signs-defence-cooperation-arrangement-with-mexico.html
January 23, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
SAGUENAY – La plupart des PME croient que le marché de la défense et des équipements militaires est complexe et inaccessible. En réalité, ce n'est pas le cas. C'est ce qu'ont expliqué Rock Lemay et Patrick Sirois de la firme Triodeaux quelque 40 entrepreneurs de la région lors d'un déjeuner-conférence organisé par la Société de la Vallée de l'Aluminium(SVA), ce matin, au Manoir du Saguenay. « Il est important pour les PME de comprendre que les contrats ne concernent pas les armements et les avions, par exemple. Il y a plein de petites et grandes entreprises qui ont découvert le marché militaire. Ce marché de la défense et des équipements militaires qui avait été délaissé pendant plusieurs années au Canada, connaît une recrudescence dans les investissements afin de renouveler les équipements nécessaires aux soldats. Il ne s'agit pas seulement des produits de haute technologie, mais également de produits et de l'équipement communs tels que les bateaux, les camions, les plateformes, les uniformes et bien d'autres. Par exemple, l'entreprise d'autobus Prévost a une division militaire. L'armée a acheté 1 500 camions en France et Prévost doit les habiller avec des équipements adaptés. C'est là que les sous-traitants rentrent en ligne de compte et peut fournir des équipements comme des coffres, échelle, pièces de métal, plateforme, etc. », explique Patrick Sirois, président de Triode. Forte croissance Au cours des 10 prochaines années, les besoins du marché de la défense connaîtront une forte croissance. Les budgets pour le renouvellement des équipements sont déjà votés et alloués et les différents départements de l'armée s'affairent à déterminer leurs besoins avant d'aller en appel d'offres. « Autre facteur intéressant, Développement économique Canada (DEC) a mis en place au cours des dernières années une politique de retombées industrielles et technologiques qui favorisent les PME et les régions. En gros, cette politique assure que même si le contrat est octroyé à des entreprises étrangères, celles-ci n'auront d'autre choix que de travailler avec des fournisseurs ou des partenaires locaux pour faire de la recherche ou de l'assemblage de produits. » En fait, les prochaines années promettent d'être très intéressantes dans ce marché. Nul besoin d'être impliqué dans des projets d'armement. « Il y a beaucoup d'équipements pour lesquels la défense canadienne cherchera des fournisseurs, tels que des remorques, des ponts, des ponceaux, des équipements logistiques, des conteneurs ainsi que l'ensemble de l'équipement nécessaire à installer et soutenir des campements temporaires. Tous ces projets représentent de belles opportunités pour les entreprises de la région », affirment M. Sirois et son collègue Rock Lemay en précisant que le marché de la défense et des équipements militaires est de plus en plus accessible pour les PME qui savent se préparer et qui ont un minimum de processus déployés dans leur organisation. Enfin, soulignons que ce déjeuner-conférence servait à démystifier le processus et de permettre aux PME qui le désirent d'êtres accompagnées tout au long de la démarche par la SVA et son créneau d'excellence. (Texte en collaboration avec Guy Bouchard) https://informeaffaires.com/regional/manufacturier-et-fournisseur/le-marche-militaire-a-la-portee-des-pme-regionales