Government of Canada awards Davie C$11.3 billion icebreaker newbuilding contract

The Canada’s shipbuilder of icebreakers and other specialized ships Davie Shipbuilding, has announced that it has secured a historic contract from the Government of Canada to build six Program Icebreakers for the Canadian Coast Guard (CCG).

The fixed-price contract, valued at C$11.3b (about USD 8.2b), marks a decisive step in the renewal and expansion of Canada’s Arctic fleet under the National Shipbuilding Strategy (NSS). Construction of the first vessel will begin in 2027, with all vessels being delivered throughout the 2030s.

Through this contract, the Government of Canada has demonstrated vision and decisive leadership by adapting contractual approaches to meet today’s strategic, economic, and security realities. The agreement reflects Canada’s confidence in Davie’s ability to assume risk and deliver complex, mission-critical vessels, while establishing a collaborative framework that enables Davie, its partners and suppliers to drive greater efficiency, productivity, and innovation in support of Canada’s long-term shipbuilding objectives.

The new fleet will replace the CCG’s heavy and medium icebreakers operating in Atlantic Canada, the St. Lawrence waterways and the Great Lakes during the winter, and in the Arctic during the summer. This investment will ensure that the CCG can continue delivering the critical services that Canadians rely on every day, including keeping vital trade and transportation routes open year-round, supporting northern and coastal communities, protecting Canada’s waters, and strengthening the country’s presence and sovereignty in the Arctic.

James Davies, Chief Executive Officer of Davie, says that “We thank the Government of Canada for its leadership and vision in challenging the status quo and reshaping how major national projects are delivered. This contract reflects Canada’s confidence in Davie’s ability to deliver complex, mission critical ships. I am incredibly proud of our team and our partners, who continue to drive productivity and innovation in shipbuilding. Together, we are ready to deliver.”