Question Period Note: Fleet Renewal

How much is the Coast Guard’s Fleet Renewal costing and when will they become operational?

• Fleet Renewal efforts under the National Shipbuilding Strategy remain a key priority to ensure Coast Guard can continue supporting the safety, accessibility, and security of Canadian waters.
• Significant progress has been made, with $17.5B in shipbuilding contracts awarded to date, and three CCG large vessels delivered. However, Coast Guard’s large vessel projects have suffered from delays and increased costs.
• Interim measures, such as the acquisition of four commercial icebreakers and the ongoing implementation of $2B in vessel life extensions, will ensure essential Coast Guard services.

• Renewal of the Canadian Coast Guard fleet is underway. Funded replacement plans are currently in place for the large vessel fleet, including:
o Three Offshore Fisheries Science Vessels, which were all delivered in 2019 and 2020;
o One Offshore Oceanographic Science Vessel (OOSV);
o Two Polar Icebreakers;
o Up to 16 Multi-Purpose Vessels (MPV);
o Two Arctic and Offshore Patrol Ships (AOPS) (Coast Guard variants of ships currently in construction for the Department of National Defence); and
o Up to six Program Icebreakers (PIB).
• Construction work is currently underway on the OOSV following cut steel in March 2021. Ancillary contract work is ongoing on the MPV project at Vancouver Shipyards (VSY) following the August 2020 contract award. Additionally, Ancillary contract work is ongoing on Polar-VSY (contract awarded July 2021) to finalize the design and prepare for construction engineering.
• Work on the Program Icebreakers and the other Polar Icebreaker is expected to begin following the addition of Chantier Davie to the National Shipbuilding Strategy (NSS), which is expected by the end of 2022. Detailed costing for these projects will be released once negotiations and contract awards for engineering and construction have occurred with the shipyard.
• Media attention has occurred over the last several years detailing the increasing costs and ongoing delays with the procurement of Coast Guard’s large vessel fleet. Coast Guard has been working closely with shipyards and internal stakeholders to manage and address ongoing issues.
• Coast Guard is also renewing its small fleet. Twenty three new small vessels have already been delivered, including two new Channel Survey and Sounding Vessels and twelve new Search and Rescue Lifeboats that have joined the fleet in the past few years. An additional eight Search and Rescue Lifeboats will be constructed at Hike Metal Products, in Wheatley, Ontario and Chantier Naval Forillon, in Gaspé, Quebec and design work is ongoing on a new Near-Shore Fishery Research Vessel.
• Coast Guard has completed the renewal of its helicopter fleet with delivery of sixteen new light-lift helicopters and seven new medium-lift helicopters. Coast Guard acquired the 16th light helicopter in September 2021.
• The Coast Guard is putting in place interim measures and investing in vessel life extension work to ensure continued delivery of critical services until new ships are delivered. This includes:
o A comprehensive Vessel Life Extension program to maintain the current fleet operational as new ships are being built;
o Acquisition of three interim icebreakers- the first, CCGS Captain Molly Kool, came into service December 2018. The second, CCGS Jean Goodwill, joined the Coast Guard fleet in late 2020. The third ship, CCGS Vincent Massey, was delivered in October 2022; and,
o Acquisition of one light icebreaker. The contract for the light icebreaker was awarded to Atlantic Towing Ltd. on September 22, 2021. The icebreaker arrived in Canada in January 2022.
Announcements:
o On May 22nd, 2019, the Prime Minister announced a renewal of the Canadian Coast Guard fleet with up to 18 new large ships built in Canadian shipyards, helping the Coast Guard continue to deliver its important services, and creating good, middle class jobs across the country.
o Total funding for the 18 large ships is $15.7 billion, which represents early estimates of project budgets including construction, logistics and support, contingency, project management and infrastructure costs. The costs of each ship class will be announced following contract negotiations.
o Irving Shipbuilding will build two non-combat AOPS, which will be adapted for the Coast Guard to perform a range of critical mission, including Northwest Atlantic Fisheries Organizational patrols.
o Vancouver Shipyards will build up to 16 MPV to support a variety of missions, including light icebreaking, aids to navigation, environmental response, and offshore search and rescue.
o Canada will also proceed through a competitive process with the design of a new class of smaller ships, the new Mid-Shore Multi-Mission ship, which would complement the work of the large fleet in shallow areas and deliver mid-shore science activities.
o On August 2, 2019, the Government of Canada announced that six new PIB would be constructed for the Canadian Coast Guard. The government also announced its intention to expand the NSS with the addition of the third Canadian Shipyard to build the PIB.
o The Request for Proposal was released to Chantier Davie in late July 2020 and concluded in July 2021. Canada announced the commencement of Umbrella Agreement (UA) negotiations on June 8, 2022. It is expected that the UA will be finalized by the end of 2022.
o On May 6, 2021, Canada announced the procurement of two Polar Icebreakers for the Canadian Coast Guard. One will be built at Vancouver Shipyards (the Polar Icebreaker had previously been removed from VSY’s UA and replaced with the 16 MPV) and the other is expected to be constructed at Chantier Davie, once it qualifies to become the third shipyard under the NSS.

• Icebreakers are essential to Canada’s economy by supporting safe, year-round trade and the passage.
• In addition to Canada’s investment in up to six Program and two Polar Icebreakers to ensure continuation of essential icebreaking services, Canada has invested a further $14.2B to procure up to 16 Multi-Purpose Vessels with icebreaking capability.
• One Polar Icebreaker will be built at Vancouver Shipyards. The Program Icebreakers and other Polar will be built at Chantier Davie, once the third shipyard process is completed (expected in late 2022).