The Canadian government has awarded Irving Shipbuilding Inc. a contract to build the Royal Canadian Navy’s River-class destroyers.
Canada’s Defence Minister Bill Blair and Public Services and Procurement Minister Jean-Yves Duclos announced that Irving Shipbuilding Inc. (ISI) will construct the River-class destroyers (RCD). This initiative supports Canada’s defence goals and creates jobs across the country.
Under Canada’s defence policy, Our North, Strong and Free (ONSAF), the Royal Canadian Navy (RCN) will acquire modern vessels to tackle current and future missions. These ships will strengthen Canada’s combat, surveillance, humanitarian aid, and law enforcement capabilities.
The RCD fleet will provide the RCN with versatile ships for operations within Canada and with allies such as NORAD, NATO, and Five Eyes nations. These ships will handle various missions, from open-ocean battles to coastal defence.
The initial contract, valued at $8 billion (including taxes), will fund the construction of the first three ships over six years. It also includes training, spare parts, and maintenance tools. The total cost of building and delivering these ships is projected at $22.2 billion (excluding taxes). This estimate covers ship construction and equipment like systems and ammunition.
The RCD project is one of Canada’s largest-ever shipbuilding efforts. It’s a core part of the National Shipbuilding Strategy (NSS), which aims to rebuild Canada’s shipbuilding industry, create jobs, and provide modern navy and coast guard fleets.
Economic Impact
The RCD project will deliver lasting benefits to Canada’s economy. It’s expected to add $719.3 million annually to Canada’s GDP and support 5,250 jobs annually from 2025 to 2039. Employee spending will contribute another $191 million annually to GDP and create an additional 1,545 jobs yearly. Atlantic Canada is expected to see significant growth and new job opportunities from this initiative.
The government’s focus on clarity and long-term partnerships with the defence sector ensures stability for the domestic shipbuilding industry. Through the RCD initiative, the RCN will receive modern, efficient ships while boosting the economy and supporting Canadian workers.
Key Facts About River-Class Destroyers
- These ships will replace retired Iroquois-class destroyers and Halifax-class frigates. They combine multiple capabilities into one ship for ocean and coastal use.
- The design is based on BAE Systems’ Type 26 warship. Variants are also being built for the UK and Australia.
- The first three ships will be named HMCS Fraser, HMCS Saint-Laurent, and HMCS Mackenzie, honouring Canadian waterways that connect to the Pacific, Atlantic, and Arctic Oceans.
- Now in its 15th year, the NSS ensures Canada’s sovereignty with new vessels and fleet maintenance for domestic and international missions.
- Between 2012 and 2024, NSS contracts contributed over $36 billion to Canada’s GDP and created or supported more than 20,400 jobs annually.
- The six-year contract includes costs for ship materials, labour, spare parts, training, logistics, and equipment supplied by Canada through agreements like the US Foreign Military Sales Program.
- The RCD project follows Canada’s Industrial and Technological Benefits Policy, requiring companies to reinvest in Canada’s economy equal to contract values. ISI must support training, technology, and industrial growth.
- A land-based test facility for the ships is being built in Halifax, Nova Scotia, and its completion is expected in 2027.
- In 2023, the government committed $463 million for shipyard upgrades to meet RCD deadlines. Additional funding in 2024 raised the total investment to $871.7 million (including taxes).
- The project aligns with Canada’s goal of spending 2% of GDP on defence and exceeding NATO’s 20% guideline for major equipment spending.
The River-class destroyers represent a significant investment in Canada’s security, economy, and shipbuilding industry. They ensure the RCN is prepared for future challenges while supporting Canadian innovation and employment.
