Submarines have long been something of an afterthought in Canadian national defense policy. In the 1960s, they simply leased some from the U.S navy, before acquiring outdated Oberon-class vessels from the U.K. to maintain a bare-minimum capability.
However, the situation changed fast – Russia and China are assertively expanding their presence in the Arctic while the security umbrella formed with the U.S. began wavering. Now, even for the Canadians, submarines are no longer a good-to-have but a must-have for survival.
The CPSP(Canadian Patrol Submarine Project), the single largest procurement in the history of the Canadian navy, marks a pivotal shift – Canada has effectively declared submarines are at the core of the national defense strategy, not on the periphery.
Korea and Germany are the two remaining competitors, locked in a fierce head-to-head for the massive contract. Each side presented proposals beyond the joint national security, to a wide range of industrial cooperation spanning mining, energy and automotives.
The game is in effect a lot more than a security deal – it is a nation-to-nation pact. The Guru traveled to Canada where the final decision is soon to be made, to capture the tension on the ground – Editor’s Note
The provincial government of British Columbia is ready to embrace billions of dollars in economic benefits from the CPSP project. The optimism is not groundless: it boasts robust industrial infrastructure and geographical advantages as well as in-service maintenance capability proven by the Victoria-class submarine support project. The officials are confident in BC positioning itself as an MRO hub. A tangible roadmap is already being finalized to become a core partner of the federal government in advancing the maritime industry of Canada over the coming decade.
◇ BC: 30 Years of Economic Gains as Western Naval MRO Hub
Ravi Kahlon, BC’s Minister of Jobs, Economic Development and Innovation, remarked in an interview with The Guru, “we are ready to play a pivotal role in the coming CPSP project, leveraging our geographically strategic advantages, already-strong naval infrastructure and industrial capabilities.” He added, “our accessibility to both the Indo-Pacific and the Arctic makes BC an ideal location for submarine construction and maintenance as well as crew training.” He estimates that a significant portion of the deal involves long-term sustainment. “This will translate into billions of dollars in added value over at least 30 years.”
BC is a home to over 70 shipyards and maritime companies producing leisure, commercial, and defense vessels. More than 500 companies are active in shipbuilding and MRO sectors. In the broader maritime industry, about 1,100 firms create 22,000 to 25,000 jobs, contributing approximately 4 billion CAD to the GDP. Also, major military facilities like the Esquimalt Naval Base, where over 700 staff reside, and naval training groups are located on Vancouver Island.
Based on this infrastructure, BC has cooperated with ‘Babcock Canada’ since 2008 to support the maintenance of Victoria-class submarines. In the coming CPSP project, they plan to use their capabilities to provide maintenance and repair services throughout the submarine’s entire life cycle.
Last October, BC officials met with Hanwha Ocean to discuss maintenance and technology transfer. Following that, in November, the provincial government hosted ‘BC Week’ and held a discussion session on the Canadian submarine project. Hanwha Ocean attended the event, introducing the KSS-III Batch-II proposed to Canada and sharing their winning strategy.
Minister Kahlon remarked, “CPSP is expected to provide various opportunities for BC companies to cooperate with prime contractors and meet the ‘local content’ requirements under the ITB (Industrial and Technological Benefits) policy.” Regarding cooperation with Korea, he answered, “We maintain a close cooperative relationship at both economic and governmental levels. Future delegation visits can be considered based on broader trade and investment priorities.”
◇ 10-Year Blueprint: Highlighting Quebec’s Industrial Base
The Canadian government previously announced it would expand defense spending to 2% of GDP by 2035. To reduce dependency on the U.S., Canada is increasing defense investment, and BC has taken preemptive action to strengthen its own maritime and shipbuilding capabilities.
On November 17 last year, BC announced the ‘Look West’ economic and industrial strategy. This strategy views the maritime industry as BC’s core growth engine and contains a 10-year vision. For the next decade, three priorities were set: △Fast-tracking permits and construction of major projects, △Securing a skilled workforce, and △Executing sector-specific action plans. They plan to attract 200 billion CAD in private investment and double the funding for skilled technical training to 214 million CAD annually by 2028-2029.
In the labor sector, investment to secure skilled talent has also doubled. Support measures like housing and infrastructure are being prepared to attract skilled workers. BC is also running a program to support the commercialization of ‘Dual-Use Technology’ (both civilian and military) for local companies.
Minister Kahlon emphasized, “Through these efforts, we will cooperate with the federal government and strengthen our ability to provide outfitting (installing equipment and facilities), testing, and services for the next-generation Canadian submarines.”
Along with BC, Quebec is also speeding up its preparation for the CPSP project. Mélanie Joly, Minister of Innovation, Science and Economic Development, stated, “Quebec has a diversified maritime industrial base covering shipbuilding, repair, maritime services, system integration, and training.” She explained, “Quebec’s maritime industry accounts for about 14% of direct employment in Canada’s total maritime sector, representing over 2,500 jobs in the province.”
To promote Quebec’s potential, they are actively contacting candidate companies. Christopher Skeete, Quebec’s Minister for International Relations, inspected the TKMS shipyard at the end of last year. Damien Pereira, the Quebec representative in Korea, also visited Hanwha Ocean’s Geoje shipyard, showing high interest in Korean shipbuilding technology.
