**Location and Context**
MILAN — Canada has awarded multibillion-dollar contracts to domestic shipbuilding manufacturers to enhance the country’s naval capabilities, specifically by acquiring new polar icebreakers and warships.
**Icebreaker Contracts**
The Canadian federal government announced plans last week to construct two new Arctic icebreakers for the Canadian Coast Guard. The first contract is valued at Canadian $3.2 billion (approximately US$2.2 billion) and has been awarded to Vancouver-headquartered Seaspan, which is set to commence construction in April.
The second icebreaker will be constructed in Levis by Quebec-based shipbuilder Davie, as part of a $3.3 billion agreement. This icebreaker is expected to be completed by 2030.
**National Shipbuilding Strategy**
Both Seaspan and Davie are integral to Canada’s National Shipbuilding Strategy, a long-term initiative aimed at modernizing the federal fleet of both combat and non-combat vessels. They are also involved in the trilateral Icebreaker Collaboration Effort (ICE Pact), which seeks to leverage Finnish, Canadian, and U.S. expertise in creating advanced iceboats.
**U.S. Icebreaker Plans**
While the U.S. has not yet clarified its icebreaker requirements and industry strategy, President Donald Trump has expressed interest in acquiring 40 new icebreakers.
**Warship Fleet**
Another contract announced last week includes a deal with Halifax-based Irving Shipbuilding. This contract will fund the construction of a new fleet of warships for the Canadian Navy, with the first three River-class destroyers estimated to cost approximately $22.2 billion, excluding taxes.
**Official Statements**
National Defense Minister Bill Blair commented, “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 with modern and versatile ships needed for Canada’s contributions to peace and security at home and abroad.”
**Political Context**
These contracts come at a crucial time for Ottawa as it navigates a trade war with the United States, following the imposition of U.S. tariffs on Canadian imports.
On March 9, the Liberal Party of Canada selected Mark Carney as its new leader, succeeding Justin Trudeau as prime minister. There is the possibility of a federal election being called as soon as late April.
**Correspondent Information**
Elisabeth Gosselin-Malo is a Europe correspondent for Defense News, focusing on military procurement and international security with a specialization in aviation reporting. She is based in Milan, Italy.
