6 octobre 2020 | Local, Naval

Shipbuilding industry pushes back as federal government shops for used icebreaker

Murray Brewster

The federal government is in the market for another used icebreaker that could be converted for use by the Canadian Coast Guard on the Great Lakes — much to the dismay of shipbuilders across the country.

A request for proposals to acquire an existing light icebreaker was posted on the government's procurement website in mid-September.

The timing is interesting. Federal decision-makers have known for five years that the coast guard needs such a vessel for the region.

The request for proposals — which closes at the end of October — was posted as U.S. lawmakers began to push bipartisan legislation through Congress to strengthen the U.S. Coast Guard's capacity to break ice and keep commerce flowing on the Great Lakes.

The plan for Canada to buy a used icebreaker follows a separate decision by Transport Canada to purchase a used ferry from Spain on an emergency basis.

Build them here, says industry

The Canadian Marine Industry and Shipbuilding Association (CMISA), which represents most of the marine suppliers and shipyards across the country, said both decisions represent a loss of domestic jobs and at least $250 million in federal spending that could have gone into a Canadian economy hard hit by the coronavirus.

"We're of the strong belief that vessels such as light icebreakers can and should be built in Canada," said Colin Cooke, president and chief executive officer of the shipbuilding association.

"We have the capacity. We have the skilled trades. We have the expertise, the technical expertise. We have the shipyards. And that was what the point of the National Shipbuilding Strategy was all about."

That shipbuilding strategy is supposed to direct government work to Canadian shipyards. Cooke said the plan to purchase an existing icebreaker and the deal to acquire a former Spanish ferry would both be unacceptable in normal times — but they're even less acceptable now.

"We are in a COVID time when we're looking for all sorts of ways to make sure that people are employed, that businesses are able to survive — I won't say thrive, I will say survive — through the lockdowns caused by this pandemic," he said.

Public Services and Procurement Canada was asked for comment last Thursday but did not respond.

The tender for the light icebreaker, posted online Sept. 18, describes the purchase as a necessary interim step for the coast guard to "bridge the gap while awaiting the delivery of dedicated new vessels."

Significantly, the request for proposals noted that the need for such a ship was identified five years ago — around the same time a comprehensive analysis warned that the coast guard icebreaking fleet was in dire straits and in need of immediate replacement.

"In 2015-16 the CCG identified a requirement for interim icebreaking capabilities to fill gaps in capacity resulting from ships being temporarily withdrawn from service" for refit and life extension, said the tender.

Two years ago, the Liberal government concluded a deal worth $827 million with Chantier Davie of Levis, Que., which operates the Davie shipyard, to refit three medium-sized commercial icebreakers for the coast guard.

Used icebreakers could be scarce

Tim Choi, a University of Calgary shipbuilding expert, said this recent tender suggests the federal government is operating on the flawed assumption that there is an abundance of used icebreakers on the market.

The deal with the Davie shipyard was an anomaly and federal officials "got lucky" last time because there happened to be three vessels available, he said.

Choi said he believes the federal government isn't likely to be so fortunate this time: his research suggests there may be only one light icebreaker out there that would fit in the bill — in Finland — and it's not clear the Finns are ready to part with it.

"There are very few requirements for a vessel like that outside of Canada and the United States in the Great Lakes, St. Lawrence region," said Choi. "It's not like there's a used car lot where you can just go out and buy these things."

The shipbuilding association said it can make a strong case for a fast-track build in Canada. Choi said he believes procurement services may be forced in that direction anyway because of market conditions.

In mid-September, three U.S. senators — Tammy Baldwin (D-WI), Todd Young (R-IN) and Gary Peters (D-MI) — introduced the Great Lakes Winter Commerce Act.

The bipartisan legislation is expected to codify the U.S. Coast Guard's icebreaking operations on the Great Lakes and, more importantly, increase the size of its fleet.

"Inadequate icebreaking capacity in the Great Lakes is costing us thousands of American jobs and millions in business revenue," said Baldwin in a statement. "We must boost our icebreaking capacity in the Great Lakes to keep our maritime commerce moving."

https://www-cbc-ca.cdn.ampproject.org/c/s/www.cbc.ca/amp/1.5751143

Sur le même sujet

  • Design by British firm BAE picked for Canada’s $60B warship replacement program

    21 octobre 2018 | Local, Naval

    Design by British firm BAE picked for Canada’s $60B warship replacement program

    DAVID PUGLIESE, OTTAWA CITIZEN The Canadian Surface Combatant project will see the Halifax-based Irving build 15 warships, which will form the backbone of the future Royal Canadian Navy The Canadian government has selected a consortium closely linked to Irving Shipbuilding to provide it with a new warship design for the most expensive defence project the country has ever seen. Canada announced Friday it had chosen the Type 26 warship design by British defence firm BAE for the $60-billion program to replace the Royal Canadian Navy's Halifax-class frigates. Lockheed Martin Canada is leading the BAE consortium and will be the prime contractor. The group's win had been anticipated since 2016, however, after rival defence firms raised concerns that the competition had been rigged in favour of the British design. The Canadian Surface Combatant project will see the Halifax-based Irving Shipbuilding build 15 warships, which will form the backbone of the future Royal Canadian Navy. It will be the largest and most complex procurement in Canadian history. However, it is seen as a major departure from previous procurement processes, as Irving is playing a significant role in selecting the winning design. The previous federal procurement minister, Judy Foote, had said only mature existing designs or designs of ships already in service would be accepted for the bidding process, on the grounds they could be built faster and would be less risky — unproven designs can face challenges as problems are found once the vessel is in the water and operating. But the Liberal government and Irving accepted the BAE design into the process, though at the time it existed only on the drawing board. Construction began on the first Type 26 frigate in the summer of 2017 for Britain's Royal Navy, but it has not yet been completed. Both Irving and the federal government have insisted the procurement was being conducted in a way that ensures all bidders are treated equally, overseen by a fairness monitor with no unfair advantage given to any individual bidder. Nonetheless, while three consortiums submitted bids for the surface combatant program, several European shipbuilders decided against participating because of concerns about the fairness of the process. Others raised concerns about BAE's closeness with the Halifax firm. Last year a French-Italian consortium also declined to formally submit a bid and instead offered Canada a fleet of vessels at a fixed price. Officials with Fincantieri of Italy and Naval Group of France said they don't believe the procurement process as it is currently designed will be successful. The federal government, however, rejected the deal. The federal government had to remind Irving about the potential for conflict of interest when the firm joined forces with BAE in late 2016 to bid on a multi-billion dollar contract to provide maintenance and support for the navy's new Arctic patrol and supply ships. The Irving-BAE alliance was not successful in that bid, but it led the government to remind Irving it had an obligation to “ensure that the Canadian Surface Combatant competition is conducted in a manner that is free from real or perceived conflicts of interest,” according to February 2017 documents prepared for defence minister Harjit Sajjan and released to the Conservatives under the Access to Information law. Andre Fillion, assistant deputy minister for defence and marine procurement at Public Services and Procurement Canada, said Friday's decision is not a contract award. “It's an important step to getting to contract award in the coming months,” he said. Negotiations will now begin with Lockheed Martin. if negotiations proceed accordingly a contract is expected to be signed sometime between January and March 2019. But Fillion said if there are issues with those negotiations and an agreement is not reached, the government will then turn to the next highest-ranked bidder. The government has declined to identify that firm, but the other bidders were from the U.S. and Spain. The Canadian Surface Combatant program has already faced delays and rising costs. In 2008 the then-Conservative government estimated the project would cost roughly $26 billion. But in 2015, Vice-Admiral Mark Norman, then commander of the navy, voiced concern that taxpayers may not have been given all the information about the program, publicly predicting the cost for the warships alone would approach $30 billion. https://ottawacitizen.com/news/british-design-selected-for-canadas-60b-warship-replacement-program-amid-concerns-about-winners-links-to-irving/

  • Construction of new Arctic ships, maintenance of frigates halted because of COVID-19

    19 mars 2020 | Local, Naval

    Construction of new Arctic ships, maintenance of frigates halted because of COVID-19

    DAVID PUGLIESE, OTTAWA CITIZEN Construction of the Royal Canadian Navy's new Arctic and Offshore Patrol Ships and maintenance of its frigates has been halted because of the novel coronavirus. “We are immediately suspending industrial activities at Halifax Shipyard, Marine Fabricators, and Woodside Industries related to the AOPS construction program and the Halifax-class In-Service maintenance program,” wrote Irving Shipbuilding president Kevin McCoy. “The decision became necessary given the high density of the employee population in certain work areas, high absenteeism, and reduced critical vendor support in materials and services.” Irving will review its decision on a week-by-week basis to assess the latest information about COVID-19, McCoy added. https://ottawacitizen.com/news/national/defence-watch/construction-of-new-arctic-ships-maintenance-of-frigates-halted-because-of-covid-19

  • Q&A with Boeing Canada's Charles “Duff” Sullivan - Skies Mag

    31 juillet 2023 | Local, Aérospatial, Sécurité

    Q&A with Boeing Canada's Charles “Duff” Sullivan - Skies Mag

    Skies sat down with Charles “Duff” Sullivan, managing director and president of Boeing Canada Operations Ltd., to discuss a variety of topics.

Toutes les nouvelles