2024 year in review: National Shipbuilding Strategy

Updates on National Shipbuilding Strategy (NSS) activities from January 1 to December 31, 2024.

The NSS is Canada's long-term plan to renew the fleets of the Royal Canadian Navy (RCN) and the Canadian Coast Guard (CCG). The NSS has also been successful in rebuilding a domestic marine industry and creating sustainable jobs in Canada.

Project advancements

In 2024, the NSS achieved milestones and showed significant progress in delivering the equipment needed by our partners to support their operational readiness and accomplish the difficult tasks required of them every day. Below are some of the 2024 key achievements for the NSS.

Pillar 1: Construction of large vessels

Delivery of 1 vessel

• Royal Canadian Navy Arctic and offshore patrol ship (AOPS) 5, His Majesty's Canadian Ship (HMCS) Frédérick Rolette, was delivered to the RCN Atlantic fleet

Launch of 3 vessels and start of pier-side work, harbour or sea trials

• Offshore oceanographic science vessel, the future Canadian Coast Guard Ship (CCGS) Naalak Nappaaluk
• AOPS 6, the future HMCS Robert Hampton Gray
• Joint support ship (JSS) 1, the HMCS Protecteur

Significant advancements made on the construction of 4 vessels

• Construction activities began for the first River-class destroyer, the future HMCS Fraser, as part of a production test module. The module will test and improve processes ahead of full-rate production in 2025
• Keel laid for Canadian Coast Guard Arctic and offshore patrol ship (AOPS) 7, the future CCGS Donjek
• Steel cutting took place for AOPS 8, the future CCGS Sermilik
• Construction progressed on JSS 2, the future HMCS Preserver, with 74% of its blocks now in production

Major progress made to prepare for new vessel construction

• 2 contracts were awarded to complete essential pre-construction work for the first flight of multi-purpose vessels
  Government of Canada awards 2 contracts for Canadian Coast Guard's Multi-Purpose Vessels
• Ancillary contract awarded for initial work to design and construct new program icebreakers
  Government of Canada awards initial contract for Program Icebreakers to Chantier Davie
• Ancillary contract awarded to advance work on the polar icebreaker
  Minister Duclos announces new investments in the National Shipbuilding Strategy at the Naval Quebec Annual Conference
• 2 future polar icebreakers were named: CCGS Arpatuuq and CCGS Imnaryuaq

Pillar 2: Construction of small vessels

Delivery of 4 vessels

• 2 naval large tugs, Haro and Barkerville, were accepted into the RCN Pacific fleet
• 17th and 18th search and rescue lifeboats, the CCGS Groswater Bay and Cascumpec Bay, were delivered to the CCG

Pillar 3: Vessel repair, refit and maintenance projects

Existing vessels received the necessary maintenance and upgrades to ensure their continued services

• Contract awarded and work began to convert and refit the CCGS Judy LaMarsh light icebreaker
  Modernizing the ships our coastal communities rely on
• Contract awarded and third work period completed for the CCGS Louis S. St-Laurent heavy icebreaker
• AOPS and JSS In-Service Support (AJISS) contract fully supported 5 Harry DeWolf-class vessels
• 7 minor warships and auxiliary vessels (MWAV) completed work periods under the MWAV IV in-service support contract
• Progress made on work periods for 3 Halifax-class frigates and 1 extended working period for the HMCS Victoria submarine under their respective in-service support contracts
• Contract awarded for the life extension of the CCGS Griffon multi-tasked vessel that is planned to begin in 2025
  Canadian Coast Guard Ship Griffon Vessel Life Extension Contract Awarded

Economic benefits

NSS contracts awarded between 2012 and 2023 are estimated to contribute close to $30 billion ($2.3 billion annually) to Canada's gross domestic product (GDP) and create or maintain more than 20,400 jobs annually between 2012 and 2024.

NSS large ship construction contracts awarded between 2012 and 2023 are estimated to contribute close to $15.5 billion ($1.19 billion annually) to Canada's GDP. These create or maintain approximately 10,755 jobs annually, through the marine industry and its Canadian suppliers, as well as consumer spending by associated employees.

NSS small ship construction contracts awarded between 2012 and 2023 are estimated to contribute close to $464.9 million ($35.8 million annually) to Canada's GDP. Money flowing from these contracts, as well as consumer spending linked to this investment, will help create or maintain almost 325 jobs annually throughout the marine industry and its Canadian suppliers.

NSS shipyards are on track to meet their economic benefits obligations under the Industrial and Technological Benefits Policy.

Innovation, Science and Economic Development Canada continues to implement the NSS Value Proposition (VP) to ensure the long-term sustainability of the Canadian marine industry.

The objective of the NSS Value Proposition (VP) is to benefit the broader marine industry to ensure its long-term sustainability. Under the NSS VP, large vessel shipyards are required to invest an amount equal to 0.5% of the value of their resultant contracts in three priority areas: human resources development, technology investment and industrial development.

As of December 31, 2024, NSS shipyards with large vessel projects had over $60 million in combined NSS VP obligations and have identified or completed over $65 million in investments. These investments will benefit the greater marine industry in the areas of human resources development, technology investment and industrial development.