Friday, August 11, 2023

Big News at Irving Shipbuilding Inc

 There was a lot of news for and from Irving Shipbuilding Inc (ISI) in the last few days (August 8-10).

 


 The first bit that caught my attention was that on August 8 Halifax Shipyard (HSY) began to cut steel for the first of the (as yet unnamed) Arctic Offshore Patrol Vessel (AOPV) variants for the Canadian Coast Guard. Following award of the contract to build six AOPVs for the Royal Canadian Navy, the government added two more ships for the CCG, in part to keep HSY busy until construction starts on the Canadian Surface Combatants (CSC) frigate replacement program. It is also in aid of closing the gap between the military Navy and the civilian Coast Guard by sharing similar patforms.

AOPS 4 William Hall is at the Shipyard having completed its first builders sea trials. That puts it on target for handover to the RCN later this year. There is also evidence that the roll out of the first Mega Blocks for AOPS 5 Frédérick Rolette will be taking place this weekend August 11-12.

 However the third piece of news drew scant attention from the mainstream media - some of which merely reprinted a press release. It is that an additional $463 million will be injected into the physical infrastructure to "enhance efficiency of ship construction" for the surface combatants. There was also surisingly little detail in what will be done at all three main sites, Halifax Shipyard, Woodside Industries and Marine Fabricators in Dartmouth. 

It seems obvious that a re-tooling of some scale will be needed to shift from AOPS to Frigate construction, and so why no one pressed for details is surprising at the very least. As the main engine generator for the Halifax economy at present and for many years to come, one would think that "expansion and modification" is hardly a sufficient explanation. If the money will be spent on outside contractors building fit out wharves, adding to buildings, raising building roofs, enhancing launch facilities, etc., that is very good news indeed, and indicates money going directly into the local economy while at the same time improving the capabilities of the shipbuilder. If instead it is an investment in AI and robotic welders, that's not such good news for employment or the local economy. Are the newsrooms all on vacation?

One overlooked item in the press release was the seeming re-confirmation (if needed) of the 3 command ships tacked on to the initial 12 replacements for the Halifax class frigates - all built on essentially the same Type 26 platform. Construction is still due to start in 2024 with a (current) price tag of $56 to $60 billion over at least twenty years. Even with inflation under control that will at least double every ten years.

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