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.
October 8, 2023 | Local, Land, Security
Denmark's defence ministry aims to restart ammunition production after a 55-year gap to ensure its domestic supplies as the war in Ukraine creates increased demand for military hardware across Europe.
April 2, 2019 | Local, Security
Thales (Euronext Paris: HO) has today completed the acquisition of Gemalto (Euronext Amsterdam and Paris: GTO), creating a global leader in digital identity and security. With Gemalto, Thales will cover the entire critical decision chain in a digital world, from data generation via sensors, to real-time decision support. This acquisition increases Thales's revenues to €19 billion and self-funded R&D to €1 billion a year, with 80,000 employees in 68 countries. PARIS — Completed in 15 months, the acquisition of Gemalto by Thales for €4.8 billion creates a Group on a new scale and a global leader in digital identity and security employing 80,000 people. The larger Thales will master all the technologies underpinning the critical decision chain for companies, organisations and governments. Incorporating the talent and technologies of Gemalto, Thales will develop secure solutions to address the major challenges faced by our societies, such as unmanned air traffic management, data and network cybersecurity, airport security or financial transaction security. Thales completes acquisition of Gemalto to become a global leader in digital security This combination creates a world-class leader with an unrivalled portfolio of digital identity and security solutions based on technologies such as biometry, data protection, and, more broadly, cybersecurity. Thales will thus provide a seamless response to customers, including critical infrastructure providers such as banks, telecom operators, government agencies, utilities and other industries as they step up to the challenges of identifying people and objects and keeping data secure. Research and development: inventing the world of tomorrow Thales and Gemalto share a passion for the advanced technologies that serve as a common foundation and focus for their 80,000 employees. Research and development (R&D) is at the core of the new Group, with its 3,000 researchers and 28,000 engineers dedicated to R&D. Thales has been developing state-of-the-art technologies to meet the most demanding requirements of customers around the world for decades. Today the Group has become a giant laboratory inventing the world of tomorrow, with a portfolio of 20,500 patents, of which more than 400 new ones were registered in 2018. Technological synergies The new Thales will cover the entire critical decision chain in an increasingly interconnected and vulnerable world, with capabilities spanning software development, data processing, real-time decision support, connectivity and end-to-end network management. With €1 billion a year devoted to self-funded R&D, the Group will continue to innovate in its key markets, drawing in particular on its world-class digital expertise in the Internet of Things, Big Data, artificial intelligence and cybersecurity. The first illustrations are as wide as the Group's portfolio: Banking: Big Data analytics Defence: biometrics Aerospace: unmanned traffic management Ground transportation: Internet of Things Space: Internet of Things Telecommunications: Big Data analytics An extended global footprint Following this acquisition, Gemalto will form one of Thales's seven global divisions, to be named Digital Identity and Security (DIS). Gemalto will interact with all of the Group's civil and defence customers and will significantly strengthen its industrial presence in 68 countries. Thales will considerably expand its operations in Latin America (2,500 employees, up from 600), triple its presence in Northern Asia (1,980, from 700), Southeast Asia (2,500, from 800) and India (1,150, from 400) and North America (6,660 employees, up from 4,600). “With Gemalto, a global leader in digital identification and data protection, Thales has acquired a set of highly complementary technologies and competencies with applications in all of our five vertical markets, which are now redefined as aerospace; space; ground transportation; digital identity and security; and defence and security. These are the smart technologies that help people make the best choices at every decisive moment. The acquisition is a turning point for the Group's 80,000 employees. Together, we are creating a giant in digital identity and security with the capabilities to compete in the big leagues worldwide.” Patrice Caine, Chairman and CEO, Thales About Thales The people who make the world go round – they rely on Thales. Our customers come to us with big ambitions: to make life better, to keep us safer. Combining a unique diversity of expertise, talents and cultures, our architects design and deliver extraordinary high technology solutions. Solutions that make tomorrow possible, today. From the bottom of the oceans to the depths of space and cyberspace, we help our customers think smarter and act faster – mastering ever greater complexity at every decisive moment along the way. Thales generated revenues of €19 billion in 2018 with 80,000 employees in 68 countries. https://montrealgazette.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/thales-completes-acquisition-of-gemalto-to-become-a-global-leader-in-digital-identity-and-security/
February 4, 2021 | Local, Naval
02/03/2021 | 09:06am EST Ultra is delighted to announce a contract award to commence work on the key Variable Depth Sonar (VDS) system for the Canadian Surface Combatant (CSC) program - named the Towed Low Frequency Active Sonar (TLFAS). This subcontract moves the development of CSC's anti-submarine warfare (ASW) capability from the program definition phase into the full manufacture and delivery of the vessels suite of sonars. The TLFAS is a world-class towed sonar solution, optimized for the detection and tracking of stealthy submarines in challenging ocean environments. When delivered it will represent a step-change in Canada's anti-submarine warfare assets and will provide a level of sonar capability never before enjoyed by the Royal Canadian Navy. The TLFAS system is fully designed and manufactured by Ultra in Nova Scotia, Canada. Its design also includes components built by other Canadian companies, such that the industrial benefit of this system selection is spread across multiple Provinces. The selection of this system for CSC therefore means that Canadian industrial content is maximized in the delivery of the initial systems, and that the skillsets and facilities required to maintain the system through its operational life are also resident in Canada. More broadly, Ultra is proud that its work on the CSC program is proving to be an important vector for growth of Canadian jobs, innovation and investment. In the two years since having been originally awarded program definition studies for CSC, working in close partnership with Lockheed Martin Canada and Irving Shipbuilding Inc., Ultra's Canadian team has grown by over 150 employees, with another 80 high-tech roles expected to be made available in 2021 alone. The program is also triggering major Canadian investment decisions by Ultra in terms of facilities, inward technology transfer and research partnerships which will be announced through the course of 2021. Overall, Ultra's role on CSC is a very good example of the Industrial and Technological Benefits that the program is providing to Canada, and of the enduring impact that the program will have on sovereign naval capability for the nation. Bernard Mills, President of Ultra Maritime Sonar Systems commented: 'Ultra recognizes our responsibility to provide, through CSC, the highest possible level of ASW capability to the Royal Canadian Navy. We are therefore immensely proud of this contract award, especially because it is grounded in Canadian innovation and ingenuity, and because it will be an enduring driver of both operational capability and national industrial benefit. Most importantly, this is not just a success for Ultra but is one for the entire CSC enterprise, and I want to thank our strong partners in Lockheed Martin Canada, Irving Shipbuilding Inc., and all our peers on the CSC team who are as dedicated as we are to the delivery of a world-class naval capability to Canada, built by Canadians'. The Honourable Anita Anand, Minister of Public Services and Procurement, noted: 'As we work to build the future fleet of the Royal Canadian Navy, we are pleased to see companies like Ultra stepping up to provide leading-edge technology for our shipbuilding projects. The National Shipbuilding Strategy continues to provide opportunities for Canadian businesses of all sizes, from coast to coast to coast.' Parliamentary Secretary to the Minister of Health and Member of Parliament for Dartmouth-Cole Harbour, Darren Fisher, highlighted the benefit of this contract award in his riding: 'I am delighted to see the positive economic impact of the National Shipbuilding Strategy across Nova Scotia. Companies like Ultra are playing an important role in the CSC program, while providing good quality jobs here in Dartmouth. Ultra's highly skilled employees will produce the technology needed to help ensure the capability of the Royal Canadian Navy's future fleet.' https://www.marketscreener.com/quote/stock/ULTRA-ELECTRONICS-9590141/news/Ultra-Electronics-awarded-Canadian-Surface-Combatant-subcontract-to-provide-Variable-Depth-Sonar-32347338/