Yesterday we learned that Canada had awarded a contract to Seaspan to build a 26,000 ton Polar Icebreaker. Today we learn that Canada awarded a second contract to a different shipyard, to build an additional 22,800 ton, 138.5 meter, polar icebreaker to a different design.

Below are news releases from Davie and Helsinki Shipyard.

It is almost impossible to accurately compare shipbuilding costs internationally, but the cost of this Canadian contract, $3.25B Canadian ($2.26B US), seems to suggest current estimates for the Polar Security Cutter are at least in the ballpark, and not outrageously high, rather that the initial contract was significantly underbid.

Davie Awarded Major Contract by Canada to Build Polar Icebreaker

March 8, 2025

Lévis — Davie, the Québec-based international shipbuilder, today announced it has been awarded a contract by the Government of Canada for the construction of a needed polar icebreaker. This initiative will leverage Davie’s international presence, with work beginning in 2025, under a robust contract framework that will enable Davie and Canada to set new standards of efficiency and productivity in vessel procurement.

Through this agreement, valued at $3.25 billion, Davie will deliver its production-ready heavy icebreaker design called the Polar Max to Canada by 2030. To support the rapid delivery of the ship, Davie will capitalize on the expertise of Helsinki Shipyard, which was acquired by Davie in 2023 with the support of the Québec government. Helsinki Shipyard has built over 50% of all the world’s icebreakers.

“Today marks a significant milestone in our commitment to enhancing our nation’s maritime capabilities” said The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant. “The contract awarded to Chantier Davie Canada Inc. for the build of a new polar icebreaker underscores our dedication to ensuring safe and efficient navigation in Arctic regions. This state-of-the-art vessel will not only strengthen our icebreaking fleet, but will also support critical scientific research and environmental protection efforts, and ensure national security in the Arctic. We are proud to take this step forward in strengthening our maritime infrastructure for safeguarding Canada’s sovereignty in the Arctic.”

While the early phase of the polar icebreaker construction is underway, the modernization of Davie’s Lévis Shipyard will continue, giving Davie time to accelerate the hiring of skilled workers across all trades. This will enable Davie to leverage its Canadian supply chain sooner than anticipated, while ensuring the completed polar icebreaker is delivered from Lévis. Davie plans to implement a workforce exchange, enabling Québec employees to learn world-class icebreaker construction expertise first-hand from their Finnish colleagues.

Davie President & CEO, James Davies, said: “Today’s announcement is truly transformative. Canada deserves immense credit for partnering with Davie on this groundbreaking procurement. Delivering such a special ship in a timely manner is in the best interests of all Canadians. It will accelerate economic benefits for Quebecers and strengthen the skills of our talented Lévis’ shipbuilders. In a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to secure shared interests. If not now, then when?”

“It is fitting that this announcement comes as Davie celebrates its 200th anniversary. The construction of the polar icebreaker will create opportunities for our employees and will place us firmly on track to create thousands of jobs far more quickly. Our Québec suppliers will be rapidly activated to help us deliver this needed ship in record time. There is a geopolitical imperative to act to protect our interests and we thank the Government of Canada and the Government of Québec for their vision and recognizing the time is now,” commented Alex Vicefield, Chairman and CEO of Inocea, the parent company of Davie Shipbuilding.

This contract is huge win for the ICE Pact. The Polar Max will be the first flagship project of the trilateral partnership. It will be proof that transatlantic collaboration is possible with the Polar Max delivered by Canadian shipbuilders supported by their Finnish colleagues.

A Win for Québec and for Canada

This announcement will bring immense benefits to Québec and the rest of Canada. Davie is committed to building a strong network of shipbuilding suppliers and plans to invest more than $200 million in local small- and medium-sized businesses to help them scale and reap the opportunities of shipbuilding contracts over the coming years and further Québec’s position as a naval construction hub.

Building on the success of our delivery of the NSC Asterix in 2018, Davie is once again committed to delivering on time and on budget.

As the global leader in Arctic shipbuilding, Davie stands out for its innovative approach and commitment to doing things differently. By working closely with Canada, Davie designed the strategy to expedite production and improve efficiency. This program will showcase Davie’s shipbuilding excellence, strengthen the local shipbuilding value chain, and create future major export opportunities for everyone involved.

About Davie

Based in Québec, Canada since 1825, Davie is a world-class designer and builder of specialist, mission-critical ships such as icebreakers, ferries and warships for government and commercial customers. Davie became a partner in the Government of Canada’s National Shipbuilding Strategy on April 4, 2023. This historic agreement is for the design and construction of the largest and most technologically advanced ice-going ships ever constructed in and for Canada. The initial $8.5 billion package of work includes seven heavy icebreakers and two large hybrid-powered ferries. In November 2023, Davie acquired Finland’s Helsinki Shipyard, the world leader in icebreaker design and construction. Find out more at davie.ca and helsinkishipyard.fi.