Recapitalizing Canada s Fleets What is next for Canada s Shipbuilding Strategy? Kevin McCoy President, Irving Shipbuilding Inc. 20 October 2016
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!
NSS: Incentivizing Investment NSS packages awarded Oct 2011 - Competitive, transparent process - Combat vessels: Irving Shipbuilding - Non-combat vessels: SeaSpan NSS = Industry Certainty - Up to 40 ships - 25-30 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
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 100-200 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
Maritime Risk to Canada Canada s Navy is being stretched compared to allies
Defence Expenditure vs. GDP Canada is not meeting NATO guidelines for defence spending and equipment investment
Naval Personnel as % of Armed Forces
Submarine Proliferation
Russia Naval Expansion
National Shipbuilding Strategy Once the Industrial Base is lost it takes 10 years to recreate US builds 12-15 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!!!
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)?
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 2016 1990 2000 2010 2020 2030 2040 2050 2060 2070
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
Littoral Combat Ship Fast Ship, Large Mission Bay Modularity/ Adaptability for the future
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
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?
For a Maritime Nation with an Extensive Ocean Estate Shipbuilding is an INVESTMENT in Security and Sovereignty
To find out more about Irving Shipbuilding visit: www.shipsforcanada.ca @IrvingShipbuild