Recapitalizing Canada s Fleets. What is next for Canada s Shipbuilding Strategy?

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1 Recapitalizing Canada s Fleets What is next for Canada s Shipbuilding Strategy? Kevin McCoy President, Irving Shipbuilding Inc. 20 October 2016

2 National Shipbuilding Strategy $520 million invested to create the best shipbuilding capability in the world + significant investment in people and processes Now that shipbuilding has been re-established on a world class level it must be maintained!

3 NSS: Incentivizing Investment NSS packages awarded Oct Competitive, transparent process - Combat vessels: Irving Shipbuilding - Non-combat vessels: SeaSpan NSS = Industry Certainty - Up to 40 ships years of steady work Leveling of boom & bust cycle Business certainty means shipyards can confidently invest in: - Facilities - Processes - People NSS has recapitalized and transformed the shipbuilding industry at no cost to Canada 3

4 NSS: Impact to Date at Irving Shipbuilding Results are already being delivered: Over $350M invested to build the most modern shipyard in North America More than 1,300 employees, and growing Hiring employees by end of 2016 $1.1 billion in spending commitments with 200+ Canadian companies Invested in world class training curriculum and facilities, and trained over 500 of our employees $11 million committed for Value Proposition investments in the greater marine industry 4

5 Maritime Risk to Canada Canada s Navy is being stretched compared to allies

6 Defence Expenditure vs. GDP Canada is not meeting NATO guidelines for defence spending and equipment investment

7 Naval Personnel as % of Armed Forces

8 Submarine Proliferation

9 Russia Naval Expansion

10 National Shipbuilding Strategy Once the Industrial Base is lost it takes 10 years to recreate US builds ships per year to support the Naval Force Structure AND maintain the Industrial Base Five Tier 1 and Two Tier 2 Shipyards: Aircraft Carrier - continuous build 2 Submarines / year 2-3 Destroyers / year 4 Littoral Combat Ships / year 1-2 Amphibious Ships / year 3-4 Support Ships / year Canada needs to keep building ships or it will lose what it has just reconstituted!!!

11 Current and Future Trends in Naval Warfare Anti-submarine warfare Bigger & better radars Air-Sea Battle Proliferation of anti-ship cruise missiles Ballistic Missile Defence Land attack/ littoral operations Unmanned vehicles air/surface/ submerged Littoral operations Modularity Large open mission bays adaptability Amphibious capability Humanitarian Assistance & Disaster Relief - Medical/ hospital - Environmental response (oil spill, etc.) - Natural Disasters (domestic/ abroad) - Command & Control Constabulary capabilities - Counter drug/ terrorism/ piracy/ migrants Smaller crews/ increased automation CSC role & spiral upgrades AOPS MCDV replacements? HA/DR ship? Amphibious ship(s)?

12 The RCN Fleet Current and Future Kingston class 970t What Next Victoria class 2,400t CSC 7,000t - 8,000t Halifax class 4,770t Harry DeWolf class 6,630t Queenston class 20,240t

13 RCN Operational Deployments Worldwide Nanook NATO Counter Drug HA/DR Unitas/ Caribbe NATO CP/ CT OEF/ Apollo History tells us: No shortage of missions or need to respond to crisis Westploy/ RIMPAC UN

14 Littoral Combat Ship Fast Ship, Large Mission Bay Modularity/ Adaptability for the future

15 Multi Role Vessels Standard in other Navies KNMLS Karl Doorman Joint Logistics Support Ship Sealift Adaptability Crisis Response Sustainment HMNZS Canterbury Multi-Role Vessel Maritime Support Ship For Canada? HMAS Canberra LHD

16 Light Multi Role Vessel (MRV) Flexible Inexpensive 3,000t 4,000t Shallow draught Multi-mission configurability Blue water/ offshore/ littoral capable Helicopter capable Catamaran/ trimaran? Surface effect? Monohull?

17 For a Maritime Nation with an Extensive Ocean Estate Shipbuilding is an INVESTMENT in Security and Sovereignty

18 To find out more about Irving Shipbuilding visit:

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