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Davie shipyard to expand operations south of the border to build icebreakers

The Pentagon released an updated Arctic strategy warning of Russia, China91裸聊视频檚 increased presence in the region
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Quebec-based Davie Shipbuilding plans to set up operations south of the border to help the United States build icebreakers. Models of the polar icebreakers are seen at the Davie Shipbuilding booth at the CANSEC trade show, billed as North America91裸聊视频檚 largest multi-service defence event, in Ottawa, on Wednesday, May 31, 2023. THE CANADIAN PRESS/Justin Tang

A Quebec shipbuilder91裸聊视频檚 expansion to the United States is part of the Biden administration91裸聊视频檚 renewed focus on Arctic defence 91裸聊视频 and a way to get around protectionist law dating back decades.

On Monday, the White House announced that Quebec-based Davie shipbuilding is in talks to make a 91裸聊视频渕ajor investment91裸聊视频 in an existing American shipyard. Davie says the U.S. government wants the company to have a presence in the country because it91裸聊视频檚 a 91裸聊视频渨orld leader91裸聊视频 in building icebreakers.

The development follows news earlier this month that Canada, the U.S. and Finland have formed a pact to collaborate on building polar icebreakers in an effort to counter Russian and Chinese ambitions in the Far North. The Pentagon released an updated Arctic strategy last week warning of Russia and China91裸聊视频檚 increased presence in the region.

91裸聊视频淚n the overall geopolitical environment, there91裸聊视频檚 a greater understanding that the Arctic is renewing its importance as a centre of geopolitical significance,91裸聊视频 said Rob Huebert, a University of Calgary professor studying Arctic sovereignty and security.

Huebert said Russia has a 91裸聊视频渟ignificant advantage91裸聊视频 in the number of icebreakers at its disposal, allowing it to manoeuvre more easily in the Arctic compared with the U.S. and its allies.

91裸聊视频淐anada and the United States have had great difficulty in ever being able to 91裸聊视频 get their act together to build icebreakers,91裸聊视频 he said. 91裸聊视频淚t91裸聊视频檚 been a gong show, to put it politely.91裸聊视频

Huebert said the countries want to pool resources to build the vessels, which can navigate through ice-covered waters and provide safe passage to other ships. But a major barrier is protectionist U.S. law, which requires the country91裸聊视频檚 navy and coast guard vessels to be built in the United States. The legislation means Canadian companies can91裸聊视频檛 build icebreakers for the United States from shipyards in Canada.

Finland91裸聊视频檚 entry into NATO in 2023 marked a turning point in the Western allies91裸聊视频 ability to collaborate on a shipbuilding strategy for Arctic defence, Huebert said, since Finland has designed about 80 per cent of the world91裸聊视频檚 icebreakers. Earlier this month on the sidelines of the NATO summit in Washington, Canada signed a trilateral agreement with the U.S. and Finland, called the ICE Pact, to boost the production of icebreakers.

This week91裸聊视频檚 announcement, Huebert said, is a 91裸聊视频渧ery important step forward91裸聊视频 in ensuring that pact will 91裸聊视频渂e something more than words.91裸聊视频

Last year, Davie purchased Finland91裸聊视频檚 Helsinki shipyard, which has built more than half the world91裸聊视频檚 icebreaker fleet. 91裸聊视频淲hat seems to be shaping up is that this then allowed Davie shipyard to basically take that technology that they have acquired from the Finns and then build it in the United States,91裸聊视频 he said.

Davie has to have a physical presence in the U.S. to comply with the legislation. Marcel Poulin, a spokesperson for the shipbuilder, said the company is having 91裸聊视频渃onfidential conversations with various shipyards in the U.S.91裸聊视频 about either a partnership or an acquisition.

91裸聊视频淭he reason why the U.S. is interested in having Davie come to the U.S. market is precisely because we are the world leader in icebreakers,91裸聊视频 he said. 91裸聊视频淚t91裸聊视频檚 proof that no one can dispute that Davie is definitely the world leader in this niche market.91裸聊视频

Louisiana-based Bollinger Shipyards currently has a contract with the United States Coast Guard to build three heavy polar icebreakers, the first American-built ships of their kind in more than 50 years.

Earlier this year, Davie secured an $8.5-billion government contract as part of Canada91裸聊视频檚 national shipbuilding strategy to build seven icebreakers, including one polar class, and two hybrid-powered ferries. Vancouver-based Seaspan Shipyards is building a second polar icebreaker.

The developments mark a turnaround for the company, which was excluded from the federal shipbuilding plan for more than a decade. Poulin said Davie has relied on funding from the provincial government to get to this point, including $520 million to help the company modernize its shipyard in L茅vis, Que., and another $110 million to help with the acquisition of the Finnish shipyard.

This week91裸聊视频檚 news places Davie in a 91裸聊视频渟trategically, and I would dare say economically, very significant position,91裸聊视频 Huebert said. But he added that it91裸聊视频檚 hard to predict what a second Trump presidency could mean for the future of the icebreaker agreement. On one hand, he said, a future Trump administration may not believe Russia poses as much of a threat as the Democrats do. On the other hand, 91裸聊视频渢he practicality and necessity of building icebreakers91裸聊视频 could carry the day.

Poulin said he hopes the ICE Pact will convince other NATO allies to purchase icebreakers from Canadian, American and Finnish shipyards.

This report by The Canadian Press was first published July 30, 2024.

Maura Forrest, The Canadian Press

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