Big Day

So today was the big day for the Federal Government's $35 billion shipbuilding announcement. The announcement came just after 5 pm Halifax time (ADT).

At first it was reported that the announcement would be made following the close of the stock markets - not sure why this should be - oh, yes, Seaspan is a publicly traded corporation. Irving Shipbuilding is privately owned, and Davie is, well, under creditor protection. Davie's new parents Daewoo and Upper Lakes Group are not publicly traded as far as I can determine, and the yard is under creditor protection until the end of October.
In a very dry pronouncement the bureaucrat tasked with reporting on the selection process finally got to the point:
Irving Shipbuilding (Halifax Shipyard) gets the plum contract, the construction of the combat vessels- namely 3 destroyers, 12 frigates and 3 arctic patrol vessels.
Seaspan (Vancouver Shipyard) gets the non-combat portion of the work, namely two support ships (with an option for third) a polar icebreaker, a hydrographic survey ship, etc.,
Davie Quebec is out of the running, but eligible for other contracts for the Coast Guard, fisheries, etc., from which the other two yards are excluded.
This is wonderful news for Halifax of course, and seems to be the most reasonable one too- and apparently free from political interference.

By coincidence the Icelandic patrol vessel that visited Halifax over night left early this afternoon.
The Canadian three ship arctic patrol vessels will look very similar, and they are expected to be the first ships to be built by Halifax.
Although they will be even larger, they will be of a similar configuration to Thor.
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Well the Bids are In

1. HMCS Halifax in refit at Halifax Shipyard.

Today was the deadline for bids on the giant Canadian shipbuilding procurement process. A dramatic last hour rescue of Davie may have shifted the odds a bit, but if you have the patience to read by latest blurb on the topic, punch My Latest Rant (at left).

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Coming up the back stretch-Meridien Maritime on the move.

With the award of major government shipbuilding contracts still several months away, at least one smaller yard is positioning itself for more work.
When the federal government awards the two contracts for large ships, the two winning yards will not be eligible for other government work. The huge contracts will monopolize the shipyards for many years to come and will leave an open field for a myriad of smaller ships needed by the Coast Guard and private clients.
Méridien Maritime of Matane, QC has been building small craft for many years. In has built small ferries and has just completed two small tugs for Transport Desgagnés. It has also performed sub-contract work for, among others, Halifax shipyard. However its present facilities are too small to tackle larger ships. It has now applied for environmental studies with the Department of Fisheries & Oceans and Transport Canada to build a new shipyard at Gros Cacouna, QC. This man made harbour, just east of Rivière-du-Loup has been under-utilized for years, and has many advantages, including a largely ice-free location, and proximity to major rail and highway routes.
Méridien proposes to build a 170m x 30m x 17m drydock and associated plant starting this fall, for completion in 2012. The facility will allow them to repair or build larger ships or to do significant sub-contract work on others. I expect the drydock would be a graving dock, formed in the large basin created at the port. There is also lots of land for plant buildings and future expansion.

Ottawa Press Release-printed verbatim

Results of Shipbuilding Qualification Process


For immediate release


OTTAWA, Ontario, October 8, 2010 – On behalf of Public Works and Government Services Canada, the National Shipbuilding Procurement Strategy Secretariat today announced the results of a Solicitation of Interest and Qualification process to build large vessels for Canada under the National Shipbuilding Procurement Strategy. Five Canadian shipyards have been short-listed to build these large vessels. They are:

Davie Yards Inc., Lévis, QC
Irving Shipbuilding Inc., Saint John, NB
Vancouver Shipyards Co. Ltd., North Vancouver, BC
Kiewit Offshore Services - a division of Peter Kiewit Infrastructure Co., Milton, ON
Seaway Marine & Industrial Inc., St. Catharines, ON

These shipyards will be invited to participate in the Request for Proposal (RFP) process, and will meet with the National Shipbuilding Procurement Secretariat on Tuesday, October 12 in Ottawa. Canada will establish a strategic relationship with two Canadian shipyards: one yard will be selected to build combat vessels while the other yard will build non-combat vessels, creating jobs in various regions of the country.

The National Shipbuilding Procurement Strategy is the result of extensive consultations with the Canadian marine and shipbuilding industry and will help to revitalize Canadian shipyards and build ships for the Navy and the Coast Guard here in Canada. It was launched on June 3, 2010.
To ensure the fairness, openness and transparency of this procurement process, two industry days have already been held and a first meeting with the short-listed shipyards is planned for October 12, 2010. In addition, a fairness monitor is participating in the selection process and an internationally recognized third-party expert will benchmark the capability and performance of the short-listed Canadian shipyards. Finally, a leading consulting firm has been engaged to provide expert advice on the procurement process. The selection of the two winning shipyards is expected in spring 2011.

More information about the National Shipbuilding Procurement Strategy is available at: http://www.tpsgc-pwgsc.gc.ca/app-acq/sam-mps/snacn-nsps-eng.html.