The federal Liberal government has awarded a $3.25 billion deal to Davie Shipbuilding near Quebec City to build a new polar icebreaker for the Canadian Coast Guard.
The contract, which has been expected, was unveiled Sunday at the Chantier Davie Canada Inc. headquarters in Lévis, Que., by a small platoon of federal Liberal cabinet ministers.
The announcement, along with a second $8 billion deal for construction of new destroyers that was unveiled in Halifax, came just hours before Liberals gather to vote and pick a new leader.
The major spending announcements also come amid speculation that the new Liberal leader could launch a snap spring election against Conservative Leader Pierre Poilievre.
Liberals will need to shore up voter support in Quebec and Nova Scotia if the party has any chance of holding onto power.
Under Ottawa’s fleet renewal program, announced in 2021, the Canadian Coast Guard is acquiring two polar icebreakers under the national spending plan.
Seaspan Vancouver Shipyards is building the other polar icebreaker.
The pair of ships will strengthen the Canadian Coast Guard’s Arctic presence and have more advanced capabilities than Canada’s current fleet, including its best icebreakers, the government announced.
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Québec Premier François Legault said the order for the Davie Shipyard will create 1,000 new jobs, plus another 1,000 jobs as goods and services are bought from supplier companies across the province.
“This is a major project that will not only create well-paying jobs but also strengthen our expertise in shipbuilding,” Legault said in a statement. “With the current economic uncertainty and concerns about protecting the Arctic, we need projects like this to secure our future. I want to thank the federal government for acting quickly on this file.”
To accelerate the new polar icebreaker’s production, the federal government said Chantier Davie “will also leverage its Canadian-owned shipyard in Finland, Helsinki Shipyard” for the project. No further details were provided about what exactly that leverage was or what it meant.
The government hopes that Finland’s expertise and track record building polar icebreakers will help the company deliver the Canadian ship faster and cheaper so they can “get on the ice quicker.”
Chantier Davie Canada Chief Executive Officer James Davies said the project will accelerate economic benefits for Quebecers and strengthen the skills of his Lévis shipbuilders.
“In a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to secure shared interests,” Davies said.
Since 2010, the federal government stated, Canadian shipyards have delivered eight large vessels and 34 small vessels to the Royal Canadian Navy and the Canadian Coast Guard, while also supporting federal fleets with repair, refit and maintenance work.
The federal government says it currently operates a fleet of 18 icebreakers of varying sizes and capabilities, making it the second-largest icebreaking fleet in the world.
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Federal Liberals hand Quebec’s Davie shipyard new $3.25B icebreaker deal
