Irving Shipbuilding has been awarded the implementation contract by the Canadian Government for the construction of River-class destroyers for the Royal Canadian Navy (RCN).
This move aligns with Canada’s defence policy, Our North, Strong and Free (ONSAF) which aims to equip the RCN with new vessels for both present and future missions while bolstering employment throughout the nation.
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The initial contract, valued at C$8bn ($5.56bn) including taxes, covers the first six years of construction, delivering the first three ships along with the necessary training, spares, and maintenance support.
The names of the first three vessels are Fraser, Saint-Laurent, and Mackenzie, which represent Canada’s reach across the Pacific, Atlantic, and Arctic oceans.
Following thorough analysis, the cost to construct and deliver the first three ships is estimated at C$22.2bn, excluding taxes.
This figure encompasses payments to Irving Shipbuilding under the implementation contract and additional expenses for equipment, systems, and ammunition needed to commission the ships.
The RCD, drawing on BAE Systems’ Type 26 warship design, currently under construction in the UK and adapted for Australia’s Hunter-class frigate, will feature new underwater sensors, new radar, and modern weaponry.
These ships are set to replace the capabilities of the retired Iroquois-class destroyers and the 12 Halifax-class frigates with a singular, multi-threat combat-ready vessel suitable for open ocean and complex coastal operations.
Designed to deliver decisive combat power at sea and support joint-force operations on land, the RCD is intended to perform in missions such as counter-piracy, counter-terrorism, intelligence and surveillance, and humanitarian assistance.
It measures 151.4 metres (m) in length with a speed of 27 knots and a range of 7,000 miles.
The new fleet will enable the RCN to fulfil Canada’s defence and security obligations, operating in conjunction with North American Aerospace Defense Command, Five Eyes nations, Nato, coalition partners, and other Canadian government departments.
National Defence Minister Bill Blair said: “By investing in our own industry, Canadian workers are helping to build the fleet of the future, equipping the Navy and our members in uniform modern and versatile ships they need for Canada’s important contributions to peace and security at home, and abroad. This work will create more than 5,000 jobs in Halifax and across Canada, supporting local economies from coast to coast to coast.”
The RCD project is projected to contribute C$719.3m annually to Canada’s GDP and sustain or create 5,250 jobs each year from 2025 to 2039.
Moreover, consumer spending by associated employees is expected to add an extra C$191m to the GDP and 1,545 jobs annually over the same period.
In July 2024, Irving Shipbuilding commenced construction of the production test module for the Canadian Surface Combatant, now known as the River-class destroyers.
