Canadian shipbuilders eye navy contract

The Canadian navy hopes that the new supply ships the government is planning to buy will be built in the country. Rear Admiral Dan McNeil said the Joint Support Ships contract, expected to cost about $2.1 billion, could help revitalize the shipbuilding industry at a time when the navy needs other vessels and the coast guard also requires new craft.

A request for proposals to build the three 28,000-tonne ships should be ready later this month, said McNeil, commander of Joint Task Force Atlantic. Two of the three consortia expected to bid for the work have said they will build in Canada. One consortium involves the Irving shipyard in Halifax.

McNeil said “I don’t favour any geographical location nor any group of companies, other than it would be a big mistake in my opinion for us to be building offshore. The costs might be cheaper offshore to begin with, but the life-cycle costs over the life of the ship would be higher, and I don’t think it would be good for Canadian industry.” McNeil said he hopes the first of the new supply ships will be ready by 2013.