New Canadian Shipbuilding Strategy

[Colin Parkinson]

Meanwhile Seaspan has been busy

https://www.nsnews.com/news/cruise-ship-retrofit-to-spike-north-van-population-1.23937511?fbclid=IwAR1YCph4JedKxPbU9LlDBdSAQZO9__fAA1sM9zG9tQlMUUN3DxKg-XiLd9A

Outside, the 27,000-tonne ship will have its hull stripped and repainted along with updates to the propulsion system and rudder. Inside, all of the cabins will be gutted.

“New furnishings, new fittings, new carpets, new TV systems, new announcement systems around the ship. All that type of thing,” Hebson said. “Logistically, that’s a lot of work.”

Getting the work done in short order will require just over 2,000 contractors and specialists. To accommodate the temporary population swell, Seaspan has arranged for another cruise ship, the 1,600-passenger Grand Classica, to dock next door to house workers.

 

[Uzlu]

Opinion: No more time to waste in replacing icebreakers

Having just returned from the Arctic on board HMCS Ville de Quebec, I was able to witness first-hand how the glaciers are receding and ice patterns are changing. Increased commercial traffic and the race for Arctic sovereignty converged with a heavily aged Coast Guard fleet means there is no time to waste for the replacement of Canada’s icebreaker fleet.

It is a matter of urgency — for national security, the economy and for the protection of the environment. We can no longer rely on an icebreaker fleet built in the 1960s and 1970s and as building ships takes time, there is no time to waste.

Fortunately this summer, Prime Minister Justin Trudeau launched a procurement to seek a third national shipbuilder and the deadline for submission just closed.

Adding the capacity of a third shipyard to the National Shipbuilding Strategy is prudent, responsible and common sense. After eight years and only one ship delivered, it became crystal clear that the program was badly in need of extra capacity. And if we learned anything from the last eight years, it is that building a shipyard to build ships is not a practical, timely or cost-effective solution.

The past seven years have witnessed a renaissance in shipbuilding in Canada. From LNG- and battery-powered ferries to complex subsea construction vessels, an offshore fisheries science vessel and a naval support ship, Canadian shipbuilders have put our industry back on the map, in several cases earning international applause. Now we need to leverage the existing experience, skills and capacity we have built up to deliver a new fleet of icebreakers for the Canadian Coast Guard.

This is particularly the case for the two classes of ship which will be built at Canada’s third national shipbuilder. Six 8,000-tonne heavy icebreakers and one or two 23,000-tonne polar icebreakers. These very large and complex ships are not something that can be built by the inexperienced. They will work in the harshest Arctic and sub-arctic conditions, crucially maintaining our trade routes, protecting the environment and ensuring our national security and sovereignty. We owe it to the men and women of our nation’s Coast Guard to build these vessels to the highest standards in a timely fashion right from the get-go.

That is why the government’s procurement department has insisted that Canada’s third shipbuilder in the strategy follows the same requirements as were established in the original National Shipbuilding Strategy competition from 2011, most notably that in order to qualify, Canadian shipyards must have at least built a small vessel of just 1,000t. If a shipbuilder can’t meet those basic requirements, then there is no way they would be ready to build the monstrous vessels which are so badly needed by the Canadian Coast Guard.

The solution for this is a yard that has the capability, experience and capacity to deliver what the Coast Guard needs and do it quickly and efficiently. We need it to begin work yesterday so the choice the government is faced with is indeed quite limited.

The government knows that Canada needs a third national shipbuilder which will deliver a timely, quality solution and our members, comprising shipbuilders, shipyards and marine suppliers, stand ready to build and maintain Canada’s future Coast Guard fleet.

Let’s get it done. The bids are in and while it will be of no surprise to anyone who the winner almost certainly is, we need to get this process moving forward so that our Canadian suppliers can ramp up and rise to the challenge.

After four years, it is time for the government to act.

Colin Cooke is President and CEO, Canadian Marine Industries and Shipbuilding Association (CMISA).

https://edmontonjournal.com/opinion/columnists/opinion-no-more-time-to-waste-in-procuring-new-icebreakers

 

[YZT580]

No question about who he wants to see get the contract is there?  Interesting that the previous operators in Port Weller designed and built a complete ship by removing the rear end of one vessel and constructing a completely new hull and attached it to the salvaged portion.  Works well and the recipients were quite pleased by the results.  They were supposed to do 5 I believe but they got out bid on the remaining 4 by an off-shore outfit from the east.  But that was just over the ten year mark set by the call for bids, another arbitrary number like the required width to guarantee Davie's victory.

 

[Oldgateboatdriver]

The ship you had in mind, YZT580, is the Algoma Navigator (St. Lawrence Navigator at the time).

They cut her up forward of the superstructure and lenghtened the hull with a  new section and built a new bow with bow truster in it. However, they kept the whole stern section, together with the engine, accommodation and bridge - which is always the more demanding part of the ship. Lengthening the hull at the cargo holds position is just building a block of steel.

Moreover, this was done in 1980. That was 39 years ago - well over the 10 year period you mention.

http://www.boatnerd.com/pictures/fleet/algomanavigator.htm

The last ship built there (from scratch) is the M.V. Jiimaan, one of the Pelee Island ferries in Ontario. She was built in 1992, so 27 years ago, but she is rated at 420 gross tons.

 

[YZT580]

oh my, but time does pass by doesn't it?  I thought that it was only like about 15 years ago.  I withdraw the suggestion

 

[Stoker]

If we wanted to "get it done" we would order offshore from a Nordic yard who actually has experience building these specialized ships. Even with Davie as the third yard we are years away from getting anything from them.

 

[Uzlu]

Davie to become Canada’s National Icebreaker Builder – Taking Canada to the Top

LEVIS, Quebec, Sept. 09, 2019 (GLOBE NEWSWIRE) -- On Friday August 30 2019, bidding closed to become Canada’s national icebreaker builder. Having cemented its place over the last decade as a world-class shipbuilder and specialist in the construction and conversion of complex, mission-critical vessels for harsh environments, Davie is the only qualified and experienced shipbuilder capable of delivering the required vessels.

Pierre Drapeau, Vice President of the Davie Suppliers Association commented, “Though we have not yet received confirmation from the company nor the government, due to the fact that the original NSPS requirement criteria from 2011 was maintained, it is clear that Davie was the only compliant bidder. According to company officials, we expect to receive official confirmation anytime now.”

Drapeau went on to say, “Over the past decade, Davie has brought the Canadian shipbuilding industry back on the world map delivering a wide variety of large, complex vessels for mission-critical operations. Davie has demonstrated that it takes more than just having a shipyard to build ships. You have to be a shipbuilder. You need the people, the experience, the systems, the equipment and most importantly for our association, the working relationship with the suppliers. Today 1,079 suppliers across Canada rely on Davie’s business so this impending announcement cannot come soon enough.”

Richard Tremblay from Char-Pol, a key supplier to Davie added, “What Davie has done over the past decade has not only been good for suppliers like us, it has delivered results for the Canadian Coast Guard, Navy and Canadian taxpayers. Selecting Davie to build Canada’s next fleet of icebreakers should have happened five years ago when they first proposed to the government to build CCGS Diefenbaker. If that had happened, we would have new icebreakers on the water today and we would likely already be working on ships for export.”

Though details of the full work package are expected to be finalized in the coming months, it is expected that the initial order will consist of six heavy icebreakers of 8,000 tonnes and up to two 23,000 tonne polar icebreakers.

As Canada’s National Icebreaker Builder, Davie and its 1079 suppliers will be taking Canada to the top. Quite literally.

Source : Davie Suppliers Association  - Association des fournisseurs de Chantier Davie Canada (afcdc.ca)

About Davie Suppliers Association

Davie Suppliers Association represents the interests of the 1079 suppliers, 879 of which are located in Quebec.

http://www.globenewswire.com/news-release/2019/09/09/1912895/0/en/Davie-to-become-Canada-s-National-Icebreaker-Builder-Taking-Canada-to-the-Top.html

 

[MarkOttawa]

Meanwhile at the UK's shipbuilding "strategy" for the Royal Navy--start of major piece:

Britain’s shipbuilding strategy has not gone according to plan — and industry is noticing

Confronted with the dilemma of maintaining a naval industrial base after the completion of two 65,000-ton aircraft carriers for the Royal Navy, the British government two years ago launched a national shipbuilding strategy aimed at building an efficient sector, and thus keeping skills and capacity alive.

But the strategy has failed to work out exactly as planned. Two yards closed this year and a third was rescued by nationalization. Meanwhile in the supply chain, the Ministry of Defence had to act quickly on ordering the motor for the Type 26 frigate to prevent the contractor from moving its capabilities to France.

Former shipyard boss Peter Parker, who authored the original shipbuilding strategy, delivered a review of the strategy’s status to the MoD, but the update remains under wraps, with no firm timing announced for its publication.

One key element of the strategy included procurement of five general-purpose frigates for the Royal Navy to be competed for by local shipyards in an effort to end BAE Systems’ maritime monopoly in Britain. Another included an international competition for up to three 40,000-ton fleet solid support ships. Both programs have subsequently run into stormy waters.

Paul Everitt, the chief executive of ADS, the lobby group that represents British defense, aerospace and security companies, said it’s important to continue to support the strategy, even as some of the impetus has been lost.

“We need to stick with the national shipbuilding strategy. It marks a significant shift in the MoD’s approach to procurement. The area that has been challenging, though, is that progress has been hindered by the political uncertainty around Brexit and the future size of MoD budgets,” Everitt said, referring to Britain’s exit from the European Union.

“Some of the decisions that would help to give industry the longer-term certainty they require to invest or hang in there aren’t being made,” he added. “Where do we go next ? It is really about the MoD creating certainty around a pipeline of work from all the key programs, all of which should offer significant amounts of work to U.K. industry over the next 15 years.”..
https://www.defensenews.com/global/europe/2019/09/08/britains-shipbuilding-strategy-has-not-gone-according-to-plan-and-industry-is-noticing/

Mark
Ottawa

 

[Uzlu]

Tribunal looking into Heddle shipbuilding contract concerns

Port Weller dry docks owner bidding on chance to provide icebreakers to Coast Guard

Heddle Marine Services hopes one small victory — convincing a federal tribunal to investigate concerns over a major federal shipbuilding contract — will lead to a bigger win later on.

The Port Weller dry docks' parent company is bidding to construct six icebreakers for the Canadian Coast Guard.

The work would likely be worth more than a billion dollars over the long term for whichever company is selected. That firm would become the third partner in the National Shipbuilding Strategy along with Irving Shipbuilding in Nova Scotia and Seaspan Shipyards in British Columbia.

But Heddle has publicly questioned the procurement process, saying it appears to favour Quebec-based Chantier Davie Shipyard.

The Canadian International Trade Tribunal agreed to investigate Heddle's complaint. On Friday, though, Public Works and Government Services Canada sought to have the complaint dismissed based on national security.

"Our lawyers are looking into it now," said Heddle president Shaun Padulo. "I can't comment too much on it right now because it's a legal issue."

He said he wants to learn more about the reasoning behind it, adding, "I found it a bit concerning. I didn't realize this was an issue of national security."

In an emailed response Monday, a spokeswoman for the tribunal said it does not comment on ongoing cases.

"As it does in all matters, the tribunal will be seeking the views from the complainant, and any comments by (Public Works and Government Services Canada) on any such views, before deliberating and providing a decision on PWGSC's motion in due course," said Melanie Lalonde.

In June, rules governing the tribunal were changed to allow the federal government to claim exemptions based on national security.

After Heddle first complained, PWGSC made some adjustments to procurement specifications, including extending the deadline for firms to apply by a week, until Aug. 30.

On Monday, Padulo said he continued to press for the tribunal to investigate because Heddle's other concerns hadn't been addressed.

He said he had also heard whispers — unconfirmed — that the Liberal government hoped to award the shipbuilding contract prior to the Oct. 21 federal election.

"I was concerned in general with the entire process. So I wanted a judicial review … to get an objective opinion," said Padulo.

"They could come back to us and say everything was above ground, and it would give me comfort. I just wanted to get someone to take a look at it based on the initial concerns I had."

Last month, St. Catharines MP Chris Bittle said the Liberal government is not taking sides as companies compete to win the contract.

"We're not a government that pits one region of the country against each other," he said. "That's why there is an appeal process for these types of issues."

Meanwhile, Heddle — it is partnering in its bid with Netherlands-based Damen Shipyards — will wait to see if it is shortlisted for the federal project.

"It's very possible a lot of my concerns will be alleviated if they say, 'You made it through to the next round,'" said Padulo.

"But until we have feedback on our submission, I'm going to be cautiously optimistic."

https://www.stcatharinesstandard.ca/news-story/9588315-tribunal-looking-into-heddle-shipbuilding-contract-concerns/

 

[Uzlu]

There are some individuals that believe that the National Shipbuilding Strategy is a bad idea: all of Canada’s large ships for the navy and coast guard should be built overseas; it is faster and less expensive.  Here is an example of building fast and inexpensive gone wrong.

 

[Cloud Cover]

Here’s another one: RFA Tidespring: https://www.savetheroyalnavy.org/rfa-tidespring-another-refit-behind-schedule/

 

[Sub_Guy]

There are some individuals that believe that the National Shipbuilding Strategy is a bad idea: all of Canada’s large ships for the navy and coast guard should be built overseas; it is faster and less expensive.  Here is an example of building fast and inexpensive gone wrong.

I believe it is a bad idea.  I think if we can save billions by building overseas, then we should.  I believe the savings should be funnelled into other programs, like making university more affordable for everyone (free?) or improving our 3rd world healthcare system.  Perhaps some of the savings could go towards ensuring that every Canadian has access to drinkable water.

Bringing up an example or two doesn't really mean anything, I can bring up plenty of issues that our yards have caused.

 

[Czech_pivo]

I believe it is a bad idea.  I think if we can save billions by building overseas, then we should.  I believe the savings should be funnelled into other programs, like making university more affordable for everyone (free?) or improving our 3rd world healthcare system.  Perhaps some of the savings could go towards ensuring that every Canadian has access to drinkable water.

Bringing up an example or two doesn't really mean anything, I can bring up plenty of issues that our yards have caused.

While we are at it, why not give everyone a free house as well.

 

[Good2Golf]

I believe it is a bad idea.  I think if we can save billions by building overseas, then we should.  I believe the savings should be funnelled into other programs, like making university more affordable for everyone (free?) or improving our 3rd world healthcare system.  Perhaps some of the savings could go towards ensuring that every Canadian has access to drinkable water.

Bringing up an example or two doesn't really mean anything, I can bring up plenty of issues that our yards have caused.

The examples also had very poor programmatic oversight by the buying agency. To save large money requires investing in the oversight of the builder with more dedication/commitment than was the case.

 

[Uzlu]

Well, it looks like adding a third shipbuilder to the National Shipbuilding Strategy cannot come soon enough.  Already the Americans appear to be complaining that the six new icebreakers are not enough.  I am assuming the allusion to Aiviq is an error.

Burrows spoke after the Chamber announced in August that Canada was already funding and taking requests for bid on a half dozen new icebreakers. The timeline put the first new arrivals within eight years of completion — ahead of the U.S. curve.

https://www.duluthnewstribune.com/business/4664285-Great-Lakes-icebreaking-yields-frosty-debate

 

[Czech_pivo]

Well, it looks like adding a third shipbuilder to the National Shipbuilding Strategy cannot come soon enough.  Already the Americans appear to be complaining that the six new icebreakers are not enough.  I am assuming the allusion to Aiviq is an error.https://www.duluthnewstribune.com/business/4664285-Great-Lakes-icebreaking-yields-frosty-debate

Good, I'm glad that they are calling us out on this.  I hope that they do it my often and more vocal going forward.  Maybe, just maybe someone will hear this and realising that something needs to be done.  Along with the RCN, something needs to happen.

 

[Uzlu]

Good, I'm glad that they are calling us out on this.

I, too, am happy that the Americans are calling us out on this.  But does anyone really believe that Trudeau would have announced a third shipbuilder for the National Shipbuilding Strategy if the Liberals were far ahead of the Conservatives in the polls?

 

[MarkOttawa]

Looks like new USCG icebreakers will be roughly similar in cost (but note gov't-furnished equipment includes military systems we do not have)  to CCG's (one only) new polar ship, supposed to cost $1.4 billion but sure to go up:

Report to Congress on Coast Guard Polar Security Cutter

The following is the Sept. 19, 2019, Congressional Research Service report, Coast Guard Polar Security Cutter (Polar Icebreaker) Program: Background and Issues for Congress.
From the report

The Coast Guard Polar Security Cutter (PSC) program is a program to acquire three new heavy polar icebreakers, to be followed years from now by the acquisition of up to three new medium polar icebreakers. The Coast Guard estimates the total procurement costs of the three heavy polar icebreakers as $1,039 million (i.e., about $1.0 billion) for the first ship, $792 million for the second ship, and $788 million for the third ship, for a combined estimated cost of $2,619 million (i.e., about $2.6 billion). Within those figures, the shipbuilder’s portion of the total procurement cost is $746 million for the first ship, $544 million for the second ship, and $535 million for the third ship, for a combined estimated shipbuilder’s cost of $1,825 million (i.e., about $1.8 billion).

On April 23, 2019, the Coast Guard-Navy Integrated Program Office for the PSC program awarded a $745.9 million fixed-price, incentive-firm contract for the detail design and construction (DD&C) of the first PSC to VT Halter Marine of Pascagoula, MS, a shipyard owned by Singapore Technologies (ST) Engineering. VT Halter was the leader of one of three industry teams that competed for the DD&C contract. The first PSC is scheduled to begin construction in 2021 and be delivered in 2024, though the DD&C contract includes financial incentives for earlier delivery.

The DD&C contract includes options for building the second and third PSCs. If these options are exercised, the total value of the contract would increase to $1,942.8 million (i.e., about $1.9 billion). The figures of $745.9 million and $1,942.8 million cover only the shipbuilder’s costs; they do not include the cost of government-furnished equipment (GFE), which is equipment for the ships that the government purchases and then provides to the shipbuilder for incorporation into the ship, or government program-management costs. When GFE and government program-management costs are included, the total estimated procurement cost of the first PSC is between $925 million and $940 million, and the total estimated procurement cost of the three-ship PSC program is about $2.95 billion [or US $1 billion each].

The PSC program has received a total of $1,034.6 million (i.e., about $1.0 billion) in procurement funding through FY2019, including $300 million provided through the Navy’s shipbuilding account in FY2017 and FY2018. The Coast Guard’s proposed FY2020 budget requests $35 million in procurement funding for the PSC program, which is enough to cover the PSC program’s FY2020 government program-management costs. The Coast Guard’s FY2019 budget submission had projected that a total of $125 million in procurement funding would be requested for the PSC program in FY2020.

The operational U.S. polar icebreaking fleet currently consists of one heavy polar icebreaker, Polar Star, and one medium polar icebreaker, Healy. In addition to Polar Star, the Coast Guard has a second heavy polar icebreaker, Polar Sea. Polar Sea, however, suffered an engine casualty in June 2010 and has been nonoperational since then. Polar Star and Polar Sea entered service in 1976 and 1978, respectively, and are now well beyond their originally intended 30-year service lives. The Coast Guard is using Polar Sea as a source of spare parts for keeping Polar Star operational.

Issues for Congress for the PSC program include, inter alia, whether to approve, reject, or modify the Coast Guard’s FY2020 procurement funding request for the program; whether to use a contract with options or a block buy contract to procure the ships; whether to continue providing at least some of the procurement funding for the PSC program through the Navy’s shipbuilding account; technical, schedule, and cost risk in the PSC program; and whether to procure heavy and medium polar icebreakers to a common basic design...
https://news.usni.org/2019/09/20/report-to-congress-on-coast-guard-polar-security-cutter-3

Mark
Ottawa

 

[Uzlu]

Shipping lobby group says Lake Superior needs more icebreaking capacity

The Chamber of Maritime Commerce sees hope in a new federal procurement program

THUNDER BAY — A lobby group for the shipping industry wants the federal government to improve icebreaking capacity on Lake Superior and the rest of the St. Lawrence Seaway.

The Ottawa-based Chamber of Maritime Commerce says there are currently only two icebreakers permanently based on the Great Lakes.

"There are deficiencies on both sides of the Canada/U.S. border," said Bruce Burrows, president of the chamber.

This year, he told tbnewswatch.com, "We had a very tough spring, a lot of heavy ice including up your way, and both fleets combined were basically incapable of addressing needs."

Burrows said his group has been telling the Canadian Coast Guard for the past couple of years that it needs additional assets.

He added he's encouraged by recently-announced federal plans to upgrade the Coast Guard fleet including the procurement of six new icebreakers to replace aging vessels.

Burrows noted it will take up to eight years before any new boats are commissioned, and that officially, they are currently designated for deployment on the east coast and in the Arctic.

But he said the potential benefit for the Great Lakes is "to cascade some older vessels which are still in good shape, to the St. Lawrence and Great Lakes."

Burrows said the Chamber of Maritime Commerce is also advocating for a total of five new Coast Guard icebreakers, in addition to the ones to be constructed as replacements.

"We still feel strongly we need one additional icebreaker for the upper Great Lakes, which would include Lake Superior and Thunder Bay, one for the lower lakes, a 'rover' that could stretch anywhere from the Seaway to Thunder Bay in the event of a severe ice season such as we saw this past season, and two assets for lower down in the St. Lawrence and the Gulf."

Burrows conceded that the government is focused on just the replacement program for now, but he said that, as an interim measure, "let's try to get at least one of the cascaded boats positioned up into the lakes initially, which would give access for coverage up into Lake Superior."

Last year, the Coast Guard bought three used icebreakers from Sweden.

According to Burrows, they are allocated to service on the east coast, but he feels they give the Coast Guard opportunity to shuffle older but still serviceable vessels into other areas.

"I'm optimistic that in the next few years we should have regular access to an asset. Where it will be home-ported is debatable. In the end, as long as we have regular access to an additional vessel, we should be happy with that."

https://www.tbnewswatch.com/local-news/shipping-lobby-group-says-lake-superior-needs-more-icebreaking-capacity-1700113

 

[Uzlu]

Ontario shipyard withdraws complaint alleging federal favouritism toward Davie

An Ontario shipyard is ending its bid to have a trade tribunal determine whether the federal government’s plan to add a third shipyard to Canada’s multibillion-dollar shipbuilding strategy has been rigged in favour of a Quebec company.

Last month, Hamilton-based Heddle Marine asked the Canadian International Trade Tribunal to launch an investigation, alleging some of the requirements needed to qualify for consideration as the third yard seemed aimed at disqualifying all contenders except Quebec’s Chantier Davie.

The federal procurement department subsequently amended some of the requirements, but Heddle asked the tribunal to press ahead with its probe.

The government then invoked a national-security exception that prevents such investigations.

The tribunal was still weighing how to respond to the government when a lawyer for Heddle notified it last week that the Ontario shipyard was withdrawing its complaint, without providing a reason.

The third shipyard will be tasked with building at least six new icebreakers for the Canadian Coast Guard, whose own icebreaker fleet is on its last legs.

https://www.theglobeandmail.com/canada/article-ontario-shipyard-withdraws-complaint-alleging-federal-favouritism-2/