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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, China香蕉视频直播檚 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 America香蕉视频直播檚 largest multi-service defence event, in Ottawa, on Wednesday, May 31, 2023. THE CANADIAN PRESS/Justin Tang

A Quebec shipbuilder香蕉视频直播檚 expansion to the United States is part of the Biden administration香蕉视频直播檚 renewed focus on Arctic defence 香蕉视频直播 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 香蕉视频直播渕ajor investment香蕉视频直播 in an existing American shipyard. Davie says the U.S. government wants the company to have a presence in the country because it香蕉视频直播檚 a 香蕉视频直播渨orld leader香蕉视频直播 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 China香蕉视频直播檚 increased presence in the region.

香蕉视频直播淚n the overall geopolitical environment, there香蕉视频直播檚 a greater understanding that the Arctic is renewing its importance as a centre of geopolitical significance,香蕉视频直播 said Rob Huebert, a University of Calgary professor studying Arctic sovereignty and security.

Huebert said Russia has a 香蕉视频直播渟ignificant advantage香蕉视频直播 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.

香蕉视频直播淐anada and the United States have had great difficulty in ever being able to 香蕉视频直播 get their act together to build icebreakers,香蕉视频直播 he said. 香蕉视频直播淚t香蕉视频直播檚 been a gong show, to put it politely.香蕉视频直播

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 country香蕉视频直播檚 navy and coast guard vessels to be built in the United States. The legislation means Canadian companies can香蕉视频直播檛 build icebreakers for the United States from shipyards in Canada.

Finland香蕉视频直播檚 entry into NATO in 2023 marked a turning point in the Western allies香蕉视频直播 ability to collaborate on a shipbuilding strategy for Arctic defence, Huebert said, since Finland has designed about 80 per cent of the world香蕉视频直播檚 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 week香蕉视频直播檚 announcement, Huebert said, is a 香蕉视频直播渧ery important step forward香蕉视频直播 in ensuring that pact will 香蕉视频直播渂e something more than words.香蕉视频直播

Last year, Davie purchased Finland香蕉视频直播檚 Helsinki shipyard, which has built more than half the world香蕉视频直播檚 icebreaker fleet. 香蕉视频直播淲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,香蕉视频直播 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 香蕉视频直播渃onfidential conversations with various shipyards in the U.S.香蕉视频直播 about either a partnership or an acquisition.

香蕉视频直播淭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,香蕉视频直播 he said. 香蕉视频直播淚t香蕉视频直播檚 proof that no one can dispute that Davie is definitely the world leader in this niche market.香蕉视频直播

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 Canada香蕉视频直播檚 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 week香蕉视频直播檚 news places Davie in a 香蕉视频直播渟trategically, and I would dare say economically, very significant position,香蕉视频直播 Huebert said. But he added that it香蕉视频直播檚 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, 香蕉视频直播渢he practicality and necessity of building icebreakers香蕉视频直播 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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