Latest news with #Seaspan
Vancouver Sun
10-08-2025
- Business
- Vancouver Sun
European company has 'extreme interest' in bid to build a dozen navy submarines, shores up support in B.C.
Canada won't decide who will build new submarines for the Royal Canadian Navy until 2028, but the program is lucrative enough that bidders are already working to shore up suppliers and support, including those on the West Coast. In July 2024, then-defence minister Bill Blair unveiled a plan to buy up to 12 new submarines for the navy, capable of patrolling the Arctic. 'When you read up to 12 submarines, then you get really excited,' said Joachim Schönfeld, senior representative in Canada for German-based Thyssenkrupp Marine Systems, one of five potential bidders to the patrol submarine project. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'That is of extreme, extreme interest for the company,' Schönfeld said if the joint German/Norwegian proposal Thyssenkrupp is submitting. The government has not released details about the project's budget, but Postmedia defence journalist David Pugliese reported an estimate would be in the tens of billions of dollars over the lifetime of the vessels. Besides Thyssenkrupp, bidders from Spain, France, Sweden and South Korea have responded to Ottawa's request for information, the initial phase of the procurement process. The winner will build the vessels in their home country. Schönfeld visited Victoria and Vancouver last week to start lining up potential partners in Thyssenkrupp's bid to supply Canada with the same Class 212CD submarine it is developing for Germany and Norway, which uses hydrogen fuel cells to provide long underwater endurance. A significant opportunity lies in developing the West Coast maintenance facility the navy would need for the program, which is what specifically brought Schönfeld to Victoria and Vancouver. 'You cannot start early enough to find the right partners and to prepare everything to be ready when the first submarine will be delivered,' Schönfeld said. He said he had plans to meet with existing shipyards, including Seaspan, which already has a close relationship with Thyssenkrupp. Seaspan is building joint support ships for the Royal Canadian Navy based on designs by Thyssenkrupp. 'The very short answer is it's huge,' Dave Hargreaves, senior vice-president at Seaspan Shipyards, said of the potential opportunity. Seaspan is already involved in submarine maintenance as the main contractor for the Royal Canadian Navy's existing four Victoria Class submarines and has built up considerable expertise over the last 15 years. Hargreaves said Seaspan has had close discussions with all five bidders in the competition. He added that they all have somewhat different proposals and levels of experience, but the program as a whole would represent a doubling of the navy's maintenance requirement. Hargreaves said the existing maintenance program supports some 250 jobs at facilities in Victoria, which could expand to about 1,000 skilled positions. That would include positions to maintain electronic and electrical systems, steel fabrication and other core systems. 'It will be a significantly larger operation than we have today, so it does represent a significant opportunity for us on the West Coast, most likely in the Victoria area,' Hargreaves said. With a 30- to 40-year design life for the subs, Hargreaves added that such an operation would be long-term, building on Seaspan's work to build vessels for the navy and Coast Guard under the National Shipbuilding Strategy. The submarine program coincides with Prime Minister Mark Carney's commitments to increase defence spending and reduce Canada's dependence on U.S. defence contractors, which has B.C. looking for its own ways of supporting the effort. Jobs Minister Ravi Kahlon wasn't made available for an interview Thursday, but the Globe and Mail reported his confirmation that the province will release its own defence industry framework in October. In a statement in response to Postmedia questions, Kahlon said the province 'recognizes the broader challenges facing our nation' when it comes to defending its sovereignty. He referred to the increased focus on defence as a 'timely and strategic opportunity for B.C.' 'Overall, B.C. is uniquely positioned to play a critical role in advancing Canada's defence priorities, offering proven industrial capacity, cutting-edge innovation and strategic geography that together drive national security, economic growth and global competitiveness,' Kahlon said. In March, Postmedia's Pugliese reported on a delegation South Korea sent to Ottawa that pitched the newly developed KSS-III submarine in its own fleet as an option, with significant benefits for Canadian industry. It is too early to guess whether any bidder has an advantage, but Schönfeld said Thyssenkrupp Marine Systems will look to 'Canadianize our current supply chain,' as the program advances. Canada anticipates a contract award by 2028 with the first delivery of a submarine by 2035. Schönfeld said Thyssenkrupp is expanding its capacity to build submarines for its own program to build 12 submarines for Germany and Norway. But to underline the company's commitment, he said Norway and Germany have agreed they'll adjust their own delivery schedules to make sure Canada could get its first new Class 212CD sooner than 2035. depenner@
Bloomberg
30-07-2025
- Business
- Bloomberg
Finnish Shipyards Join With Bollinger, Seaspan on US Icebreakers
Two Finnish shipyards are teaming up with their peers in the US and Canada to offer icebreakers to the US Coast Guard as rivalry in the Arctic heats up. Bollinger Shipyards LLC, based in Louisiana, will lead the partnership that also includes Seaspan ULC of Canada as well as Rauma Marine Constructions Oy and Aker Arctic Technology Oy of Finland, according to a statement on Tuesday.
The Guardian
05-07-2025
- Science
- The Guardian
Canada races to build icebreakers amid melting ice and geopolitical tensions
For millennia, a mass of sea ice in the high Arctic has changed with the seasons, casting off its outer layer in summer and expanding in winter as it spins between Russia, Canada and Alaska. Known as the Beaufort Gyre, this fluke of geography and oceanography was once a proving ground for ice to 'mature' into thick sheets. But no more. A rapidly changing climate has reshaped the region, reducing perennial sea ice. As ocean currents spin what is left of the gyre, chunks of ice now clog many of the channels separating the northern islands. Canada's coast guard has an expression for this confounding phenomenon: less ice means more ice. 'Most people think climate change means that you won't need heavy icebreakers,' said Robert Huebert, an Arctic security expert at the University of Calgary. 'And the experience of the coast guard is: no, you need far more icebreakers.' To address the problem, Canada is building a new fleet of ships to fight through the once-impenetrable sea ice. It is not alone, with the prospect of new shipping routes opening up – and with them access to critical minerals in the Arctic – Russia, China and the United States are also rushing to build new icebreakers. At Seaspan's shipyards in north Vancouver, bound on one side by ocean and the other by mountains, teams have started cutting steel for a 520ft polar-class icebreaker that will operate in temperatures near -50C (-58F). The project is expected to take at least five years to complete and cost C$3.15bn ($2.32bn). When finished, the heavy icebreaker will be the centrepiece of Canada's recently announced national shipbuilding strategy that looks to further entrench its presence in the Arctic – and distance itself from decades of delay, bureaucratic fumbling and broken promises. The challenge of building an icebreaker is that the end result must operate in some of the most inhospitable places on Earth with little risk of failure, experts say. 'Shipbuilding is one of the older industries, but it's still it's one of the last industries to perfect, because the reality is, you're building a one-off floating city,' said Eddie Schehr, the company's vice-president of production. Walking through the hangar-like 'shops' where pieces are gradually welded with the aim of eventually crafting a hull, he likens the complex assembly to a costly, often error-ridden form of Lego. 'And so it's often not until the very, very end that you find problems. And you will find them.' Even the supposedly simpler parts require steel that often measures 60mm thick and requires special machinery to stress-test. 'Because of the strength and capabilities the ships needs to have, it's twice the thickness and really, twice the ship,' he said. 'You have to operate and think at a whole different level.' The ship will be a class 2 icebreaker, meaning it can operate year-round and push through ice as tall as 10ft. The last time Canada built a similar vessel domestically was in the 1960s and that ship, the Louis St Laurent, still remains the larger of Canada's only two heavy icebreakers. Canada first announced it would replace Louis St Laurent in 1985, but those plans were scuttled. It wasn't until 2008, when the prime minister, Stephen Harper, announced his government would build another replacement: a heavy icebreaker called the John G Diefenbaker. It too was never built, but Schehr recalls studying plans for the boat in university. 'Time's a big circle. Now I'm here and we're now actually finally building that very ship,' said Schehr. For sceptics, Seaspan can point to the Naalak Nappaaluk, an offshore oceanographic science vessel it recently finished that can operate in ice nearly 4ft thick and is tasked with 'identifying the true impact of climate change' when out at sea, says Schehr. Canada's federal government has also commissioned another company, Quebec's Davie shipyards, to build a second icebreaker, framing the decision as one that reflects the gravity of the moment: large icebreakers, incredibly slow to produce, are needed fast. In 2024, Davie purchased a shipyard in Helsinki. And in mid-June, the company also purchased a shipyard in the US, part of an effort to bring future production down south as a way around restrictive American legislation that prohibits foreign companies from building ships. 'If we were building two icebreakers and two shipyards, that's the surest way to make it inefficiently,' said Huebert. 'The coast guard is going to have to train on two different ships. And for the next 50 years, there will be little commonality in repairs and parts. If you asked me what is the most expensive and inefficient way of building more than one vessel, just look to Canada and its icebreakers.' Internally, Canada's historic inability to marshal the resources to build a new ship has become both a running joke and embarrassment. But the recently signed Ice Pact, a tripartite agreement between the Finland, Canada and the United States, could shift global production as Canada looks to revive its shipbuilding industry. Finland has already built 80% of the world's ice-capable ships operating in frigid waters. But the deal, announced during the Nato summit in Washington, will see as many as 90 icebreaker ships produced in the coming years, by the three countries. Both Seaspan and Davie hope to be a supplier to the US Coast Guard in coming years if they can successfully produce a heavy icebreaker. Russia is believed to have at least 50 icebreakers and more than a dozen can operate in the harshest climates. China probably has four that are suitable for the Arctic ice, though which seasons it can operate in is unclear. Donald Trump has signalled he wants as many as 40 icebreakers, suggesting allied Arctic nations are entering an arms race for the ships. Shipping experts say the president's interest in a fleet of icebreakers reflects a fervour in the multibillion-dollar shipping industry: clearing the North-West Passage of ice for more of the year could year could trim weeks off of shipping times between Europe and Asia. But it's not just about money. In recent months, Canada's federal government has pledged significant investment for the Arctic in a show of military force. 'We see the centrality of the Arctic for the Russians, and as the Russians become a much more aggressive state, the importance of that capability becomes much more clear,' he said. 'But if you're building icebreakers for sovereignty, it starts going beyond the icebreakers. Now you need to invest in satellite, radar and submarines. They're all part of a system. Icebreakers alone aren't enough.' Some are sceptical that the push for new icebreakers reflects a burgeoning arms race. 'We need Canadian government ships that can operate in the Canadian Arctic when there is other shipping there. There is no question about that,' said Michael Byers, a professor of political science at the University of British Columbia. 'But politicians and pundits often escalate the concern: 'Oh my God, the Russians are coming,' or 'The Chinese are coming.' I see no evidence of that. The Russians already own half of the Arctic. They don't need any more.' Byers notes that Russia has a different, larger coastline it needs to maintain for year-round shipping, necessitating more ice-worthy vessels. Instead, Byers points to a reality in which more ships clamour for Arctic passage. 'With less ice in the Arctic, it actually becomes more challenging and risky.' When ships moving in open water encounter gale-force conditions and cold air temperatures, ocean spray can freeze on to the vessels and in some cases, accumulate so much it capsizes them. 'We'll always need icebreakers because the Arctic will always remain a dangerous place. And that's why we will always need the Canadian government to make or buy these ships.' This article was amended on 4 July 2025 to remove a reference to the name of the new polar ice-breaker, which has not yet been confirmed.
The Guardian
04-07-2025
- Science
- The Guardian
Canada races to build icebreakers amid melting ice and geopolitical tensions
For millennia, a mass of sea ice in the high Arctic has changed with the seasons, casting off its outer layer in summer and expanding in winter as it spins between Russia, Canada and Alaska. Known as the Beaufort Gyre, this fluke of geography and oceanography was once a proving ground for ice to 'mature' into icebergs. But no more. A rapidly changing climate has reshaped the region, reducing perennial sea ice. As ocean currents spin what is left of the gyre, chunks of ice now clog many of the channels separating the northern islands. Canada's coast guard has an expression for this confounding phenomenon: less ice means more ice. 'Most people think climate change means that you won't need heavy icebreakers,' said Robert Huebert, an Arctic security expert at the University of Calgary. 'And the experience of the coast guard is: no, you need far more icebreakers.' To address the problem, Canada is building a new fleet of ships to fight through the once-impenetrable sea ice. It is not alone, with the prospect of new shipping routes opening up – and with them access to critical minerals in the Arctic – Russia, China and the United States are also rushing to build new icebreakers. At Seaspan's shipyards in north Vancouver, bound on one side by ocean and the other by mountains, teams have started cutting steel for the Arpatuuq – a 520ft ship that will operate in temperatures near -50C (-58F). The project is expected to take at least five years to complete and cost C$3.15bn ($2.32bn). When finished, the heavy icebreaker will be the centrepiece of Canada's recently announced national shipbuilding strategy that looks to further entrench its presence in the Arctic – and distance itself from decades of delay, bureaucratic fumbling and broken promises. The challenge of building an icebreaker is that the end result must operate in some of the most inhospitable places on Earth with little risk of failure, experts say. 'Shipbuilding is one of the older industries, but it's still it's one of the last industries to perfect, because the reality is, you're building a one-off floating city,' said Eddie Schehr, the company's vice-president of production. Walking through the hangar-like 'shops' where pieces are gradually welded with the aim of eventually crafting a hull, he likens the complex assembly to a costly, often error-ridden form of Lego. 'And so it's often not until the very, very end that you find problems. And you will find them.' Even the supposedly simpler parts require steel that often measures 60mm thick and requires special machinery to stress-test. 'Because of the strength and capabilities the ships needs to have, it's twice the thickness and really, twice the ship,' he said. 'You have to operate and think at a whole different level.' The Arpatuuq will be a class 2 icebreaker, meaning it can operate year-round and push through ice as tall as 10ft. The last time Canada built a similar vessel domestically was in the 1960s and that ship, the Louis St Laurent, still remains the larger of Canada's only two heavy icebreakers. Canada first announced it would replace Louis St Laurent in 1985, but those plans were scuttled. It wasn't until 2008, when the prime minister, Stephen Harper, announced his government would build another replacement: a heavy icebreaker called the John G Diefenbaker. It too was never built, but Schehr recalls studying plans for the boat in university. 'Time's a big circle. Now I'm here and we're now actually finally building that very ship,' said Schehr. 'It just has a different name now, [the Arpatuuq].' For sceptics, Seaspan can point to the Naalak Nappaaluk, an offshore oceanographic science vessel it recently finished that can operate in ice nearly 4ft thick and is tasked with 'identifying the true impact of climate change' when out at sea, says Schehr. Canada's federal government has also commissioned another company, Quebec's Davie shipyards, to build a second icebreaker, framing the decision as one that reflects the gravity of the moment: large icebreakers, incredibly slow to produce, are needed fast. In 2024, Davie purchased a shipyard in Helsinki. And in mid-June, the company also purchased a shipyard in the US, part of an effort to bring future production down south as a way around restrictive American legislation that prohibits foreign companies from building ships. 'If we were building two icebreakers and two shipyards, that's the surest way to make it inefficiently,' said Huebert. 'The coast guard is going to have to train on two different ships. And for the next 50 years, there will be little commonality in repairs and parts. If you asked me what is the most expensive and inefficient way of building more than one vessel, just look to Canada and its icebreakers.' Internally, Canada's historic inability to marshal the resources to build a new ship has become both a running joke and embarrassment. But the recently signed Ice Pact, a tripartite agreement between the Finland, Canada and the United States, could shift global production as Canada looks to revive its shipbuilding industry. Finland has already built 80% of the world's ice-capable ships operating in frigid waters. But the deal, announced during the Nato summit in Washington, will see as many as 90 icebreaker ships produced in the coming years, by the three countries. Both Seaspan and Davie hope to be a supplier to the US Coast Guard in coming years if they can successfully produce a heavy icebreaker. Russia is believed to have at least 50 icebreakers and more than a dozen can operate in the harshest climates. China probably has four that are suitable for the Arctic ice, though which seasons it can operate in is unclear. Donald Trump has signalled he wants as many as 40 icebreakers, suggesting allied Arctic nations are entering an arms race for the ships. Shipping experts say the president's interest in a fleet of icebreakers reflects a fervour in the multibillion-dollar shipping industry: clearing the North-West Passage of ice for more of the year could year could trim weeks off of shipping times between Europe and Asia. But it's not just about money. In recent months, Canada's federal government has pledged significant investment for the Arctic in a show of military force. 'We see the centrality of the Arctic for the Russians, and as the Russians become a much more aggressive state, the importance of that capability becomes much more clear,' he said. 'But if you're building icebreakers for sovereignty, it starts going beyond the icebreakers. Now you need to invest in satellite, radar and submarines. They're all part of a system. Icebreakers alone aren't enough.' Some are sceptical that the push for new icebreakers reflects a burgeoning arms race. 'We need Canadian government ships that can operate in the Canadian Arctic when there is other shipping there. There is no question about that,' said Michael Byers, a professor of political science at the University of British Columbia. 'But politicians and pundits often escalate the concern: 'Oh my God, the Russians are coming,' or 'The Chinese are coming.' I see no evidence of that. The Russians already own half of the Arctic. They don't need any more.' Byers notes that Russia has a different, larger coastline it needs to maintain for year-round shipping, necessitating more ice-worthy vessels. Instead, Byers points to a reality in which more ships clamour for Arctic passage. 'With less ice in the Arctic, it actually becomes more challenging and risky.' When ships moving in open water encounter gale-force conditions and cold air temperatures, ocean spray can freeze on to the vessels and in some cases, accumulate so much it capsizes them. 'We'll always need icebreakers because the Arctic will always remain a dangerous place. And that's why we will always need the Canadian government to make or buy these ships.'
Global News
04-07-2025
- Business
- Global News
‘It can't just be a competition on price': Why Seaspan didn't bid on BC Ferries contract
British Columbia's biggest shipyard says building the next wave of ferries in the province is absolutely a possibility, but will require political will on the part of decision makers. It comes as BC Ferries faces public pressure over its recent decision to award a multi-billion-dollar contract to build four new major vessels to a Chinese shipyard. No Canadian company bid on the contract, and while the decision will save the company $1.2 billion over going with a European yard, it has hit the choppy waters of growing nationalism and a global trade war. B.C. shipyard Seaspan did not bid on the deal. 2:15 BC Ferries criticized over decision to award contract to Chinese-owned shipyard Senior vice-president of strategy, business development and communications Dave Hargreaves told Global News that's in part because while it has the capability, it doesn't currently have the capacity. Story continues below advertisement The company is essentially fully booked through the end of the decade, building Coast Guard and Canadian Navy ships. But the company said the BC Ferries procurement process — which was heavily tilted towards price — would have essentially ruled it out anyway. 'The fact of the matter is that their labour costs in their shipyards is probably seven to eight times cheaper than ours, so not like 10 per cent cheaper,' Hargreaves said. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'That labour cost differential is big. And so it's hard to see that we would ever get to cost-competitive with China, or for that matter like Korea, or some Eastern European countries, or places like that.' Hargreaves compared the BC Ferries contract to its deals for major vessels with the federal government, which he said have a 100 per cent overall Canadian content requirement. It's a political calculation, he said, that acknowledges a higher up-front cost, but comes with downstream benefits. 2:15 BC Ferries new vessel federal funding controversy Those high-paying jobs return income taxes to the provincial and federal government and have indirect economic effects through consumer spending, he said. Story continues below advertisement Expanding the shipbuilding sector drives innovation, grows the skilled workforce and expands the wider marine ecosystem, he added. 'Some of our subcontractors are already exporting things,' he said. 'You don't get any of that if you go and build the ferries in China.' And there is the strategic benefit of domestic control of shipbuilding capacity. 'Having a sovereign capability to do shipbuilding in Canada, I mean, we still are one of the world's longest coastline countries with huge maritime areas,' he said. 'So the ability to build ships kind of seems important.' While Premier David Eby has said he wants to see vessels built in B.C., the province won't force BC Ferries to drop the China contract — citing the urgent need to get the vessels into service, and the desire to keep ferry fares down. On Thursday, Deputy Premier Niki Sharma toured the Seaspan shipyard. 2:10 BC Building Trades expresses disappointment in BC Ferries decision 'This multi-billion-dollar success story is possible thanks to the key role Ottawa plays in supporting the national shipbuilding strategy,' she said of the Navy and Coast Guard work underway. Story continues below advertisement 'We are determined to continue this work with the federal government to support Seaspan to do the same for civilian ships. Expanding B.C.'s capacity and getting B.C. shipyards ready to successfully bid on more Canadian ship contracts will create more good jobs in this community and the communities that supply them.' That's the kind of talk Hargreaves said will be necessary if future ferries are to be built in B.C., adding the provincial government will need to be fully on board. 'That does have to include some much stronger preferences for B.C./Canadian content. It can't just be a competition on price, it has to take into account all the other benefits that accrue from building here … has to be seen as an investment for B.C.,' he said. 'BC Ferries doesn't really have that flexibility to make that decision by themselves, right? It has to be the province that comes to the table there.'
