Today marks a pivotal moment for Canada’s defence and maritime industries. The Canadian government has awarded a landmark contract to Irving Shipbuilding Inc. (ISI) for the construction of the River-class destroyers (RCD), previously known as Canadian Surface Combatants. This ambitious initiative, the largest of its kind since World War II, underscores Canada’s commitment to modernizing its naval fleet while bolstering the domestic shipbuilding sector.
At the heart of this announcement is a robust investment in Canada’s defence capabilities and economic prosperity. The initial contract, valued at $8 billion (including taxes), will fund the first six years of construction, delivering three advanced warships to the Royal Canadian Navy (RCN). These vessels, designed to perform a wide range of missions from counter-piracy to humanitarian assistance, embody a strategic leap forward in Canada’s maritime defence.
“Through Canada’s new defence policy, Our North, Strong and Free, we are providing the Royal Canadian Navy with the modern ships it needs to support current and future operations,” declared the Honourable Bill Blair, Minister of National Defence. This policy not only addresses immediate defence requirements but also lays the groundwork for a sustainable and resilient maritime industry.
The RCD initiative is more than just a shipbuilding project; it’s an economic engine driving growth and job creation. The contract is projected to contribute $719.3 million annually to Canada’s GDP and create or maintain 5,250 jobs annually over the next 15 years. Additionally, consumer spending by associated employees is estimated to add $191 million annually to the GDP and support 1,545 additional jobs. This economic ripple effect will be particularly impactful in Atlantic Canada, a region poised to benefit significantly from the influx of jobs and investment.
The River-class destroyers will replace the retired Iroquois-class destroyers and Halifax-class frigates, consolidating multiple capabilities into a single, versatile platform. Based on BAE Systems’ Type 26 warship design, these vessels will feature enhanced underwater sensors, state-of-the-art radar, and modern weapons systems. The first three ships, named His Majesty’s Canadian Ships Fraser, Saint-Laurent, and Mackenzie, pay homage to Canada’s pivotal waterways, symbolizing the nation’s maritime heritage and strategic interests.
“This initiative is at the core of the government’s commitment to revitalize Canada’s marine industry, establish a sovereign shipbuilding capability, and develop a skilled and experienced labour force,” stated the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant. This commitment is evident in the $463 million investment in shipyard infrastructure, recently revised to $871.7 million, ensuring ISI has the capacity to meet delivery timelines efficiently.
The River-class destroyers project also aligns with Canada’s Industrial and Technological Benefits Policy, requiring ISI to reinvest 0.5% of its contracts into human resources development, technology investment, and industrial development. This policy ensures that the benefits of the project extend beyond immediate economic gains, fostering long-term growth and innovation in the marine industry.
As Canada aims to reach 2% of GDP spending on defence, initiatives like the RCD project are crucial. They not only modernize the RCN but also position Canada to exceed NATO’s 20% guideline for major equipment expenditures. This strategic investment ensures that the Canadian Armed Forces remain a formidable and adaptable force, capable of defending national interests and contributing to global security.
The construction of a land-based testing facility in Halifax, Nova Scotia, further underscores the government’s commitment to supporting the RCD project throughout its lifecycle. Scheduled to begin this summer and complete in 2027, this facility will be instrumental in bringing the River-class destroyers into service and maintaining their operational readiness.
In celebration of the 15th anniversary of the National Shipbuilding Strategy (NSS), it’s clear that Canada’s vision for a revitalized marine industry is coming to fruition. Since 2010, the NSS has contributed over $36 billion to Canada’s GDP and supported more than 20,400 jobs annually. The River-class destroyers project is a testament to the ongoing success and future potential of this strategy.
As the River-class destroyers
