“Davie Awarded Major Contract by Canada to Build Polar Icebreaker” –Davie News Release

Posted on March 9, 2025 by Chuck Hill

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.

DAVIE AND CANADIAN GOVERNMENT AGREE ON HEAVY ICEBREAKER CONSTRUCTION – WORK TO BEGIN AT HELSINKI SHIPYARD

8.3.2025

Canadian-owned Davie, which owns the Helsinki Shipyard, signed an agreement with the Canadian government to construct a heavy icebreaker. The new vessel will be based on Davie’s advanced Polar Max icebreaker, created by the Helsinki Shipyard basing on Aker Arctic’s original Aker ARC 148 hull form.

Polar Max is the first newbuild project at the Helsinki Shipyard under Davie’s ownership, and it will be carried out in collaboration between Finnish and Canadian maritime industry experts. The work will begin in Helsinki and be completed at Davie’s shipyard in Canada. The finished vessel is scheduled to be delivered to the Canadian government by 2030. The unique expertise of the Helsinki Shipyard will play a significant role in delivering the vessel on such a fast schedule.

The construction of the icebreaker is expected to increase the direct workforce at the Helsinki Shipyard by around 500 employees, with many hundreds more employed throughout the Finnish maritime industry cluster.

The icebreaker order is part of Canada’s national shipbuilding program. This new order is the second heavy icebreaker project in this program. The project is also aligned with the principles of the Icebreaker Collaboration Effort (“ICE Pact”) between Finland, the United States and Canada, which originated from President Trump’s 2020 discussions with the Finland government. The ICE Pact supports the West’s urgent need to build advanced icebreaker fleets to counter the expansion of adversaries in the polar regions.

“When we acquired Helsinki Shipyard, we pledged to rebuild this historic business. The Polar Max project is evidence that we are delivering on our promise. We can’t wait to begin this new chapter in Helsinki Shipyard’s story. The Canadian government deserves immense credit for partnering with Davie on this groundbreaking procurement. In such a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to defend our shared interests. If not now, then when?” said James Davies, President & CEO, Davie Shipbuilding.

“The Polar Max project is an important milestone in expanding production and design in Helsinki. The project is an excellent example of Finland’s leading Arctic shipbuilding expertise, which is in significant demand internationally,” said Kim Salmi, CEO of Helsinki Shipyard.

Polar Max will be 22,800 tonnes vessel with a length of 138,5 meters. Additionally, it functions as a research vessel, capable of performing oil spill response operations and emergency towing year-round. Davie continues to promote similar projects internationally and aims to accelerate the development of Finland’s maritime industry ecosystem and the creation of Finnish maritime innovations.

“Seaspan to Build Made-In-Canada Heavy Polar Icebreaker” –Seaspan News Release

Posted on March 8, 2025 by Chuck Hill

Canadian Polar Icebreaker to be built by Seaspan

Below is a news release from Canadian shipbuilder, Seaspan.

March 7, 2025 – North Vancouver, BC – Today, Seaspan Shipyards (Seaspan) has been awarded the construction contract to build one of the Canadian Coast Guard’s (CCG) new heavy polar icebreakers.

The polar icebreaker will be built entirely in Canada at Seaspan’s Vancouver Shipyards, located in North Vancouver, British Columbia. With the contract now in place, Seaspan is ready to cut steel on this ship and begin full-rate construction on Canada’s newest vessel under the National Shipbuilding Strategy (NSS). Construction of this ship will support the work of a team of more than 1,000 local shipbuilders and a broad Canadian supply chain of over 800 Canadian companies contributing massive strategic value, innovation and economic benefits to Canada.

Building this complex and densely-outfitted multi-mission ship will mark the first time a polar icebreaker has been built in Canada in more than 60 years and will have more advanced capabilities than the CCG’s current heavy icebreakers. Once delivered, this made-in-Canada heavy polar icebreaker will be one of the most advanced and capable icebreakers in the entire world. It will be one of only a handful of Polar Class 2 ships in operation and will allow for the CCG to operate self-sufficiently year-round in the high-Arctic, down to temperatures at -50°C.

The new polar icebreaker will be the seventh vessel designed and built by Seaspan under the NSS. It will also be the fifth Polar Class vessel to be built for the CCG, and one of up to 21 icebreaking vessels overall that Seaspan is constructing.

Functional design of the polar icebreaker was completed in 2024 by Seaspan, prior to the start of construction. For this ship, Seaspan worked extensively to build out the largest marine design and engineering team in Canada, which includes Seaspan employees and Canadian partners, while simultaneously working alongside established Finnish companies who have extensive experience in designing Arctic-going vessels.

Seaspan is the only Canadian shipyard with the expertise, facilities, and domestic supply-chain to build polar icebreakers in Canada. Official start of construction for this new heavy polar icebreaker is scheduled for April 2025.

QUOTES

“Today’s contract signing is the next step in our journey of fulfilling the vision of the National Shipbuilding Strategy, which is to build ships for Canada, in Canada, by Canadians. The NSS is demonstrating that a made-in-Canada approach is not only possible, but also imperative to our security and sovereignty. We look forward to starting construction on this ship next month, and to building more Polar Class vessels for Canada and our Ice Pact partners.”

John McCarthy, CEO, Seaspan Shipyards

“The contract awarded to Seaspan’s Vancouver Shipyards for the build of a new polar icebreaker is a significant step forward for Canada’s economic and natural resource sectors. This advanced vessel will not only ensure safe and efficient navigation in our polar regions but also support the sustainable development of our natural resources. By enhancing our icebreaking capabilities, we are opening new opportunities for economic growth, scientific research and environmental stewardship. This project exemplifies our commitment to leveraging cutting-edge technology to benefit our economy and protect our unique polar environments for future generations.”

The Hon. Jonathan Wilkinson, Minister of Energy and Natural Resources and MP for North Vancouver

“Today marks a significant milestone in our commitment to enhancing our nation’s maritime capabilities. The contract awarded to Seaspan’s Vancouver Shipyards 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.”

The Hon. Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant

“The National Shipbuilding Strategy is providing the Canadian Coast Guard with its fleet of the future. The polar icebreaker to be built by Vancouver Shipyards will be able to operate in the Arctic year-round, further bolstering our ability to deliver crucial services to Northern communities and support Canadian sovereignty in the Arctic.”

The Honourable Diane Lebouthillier, Minister of Fisheries, Oceans and the Canadian Coast Guard

“Our partnership with Seaspan to construct a polar icebreaker underscores our government’s steadfast commitment to ensuring the Canadian Coast Guard can continue to protect Canada’s sovereignty and interests, while also revitalizing Canada’s shipbuilding industry, creating high-paying jobs and maximizing economic benefits across the country.”

The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

QUICK FACTS

The polar icebreaker will be 158 metres long and 28 metres wide, with a design displacement of 26,036t.
Highlights of key design features, include:
- IACS Polar Class 2 (PC2) Heavy Icebreaker
- More than 40MW of installed power
- Ice-classed azimuthing propulsion system
- Complex, multi-role mission capability
- Scientific Laboratories
- Moon Pool (to allow for safe deployment of equipment from within the ship)
- Helicopter flight deck and Hangar
- Vehicle Garage and future Remotely Piloted Aircraft System (RPAS) capability

Seaspan has already gained significant experience designing and building Polar Class vessels including three offshore fisheries science vessels which are now in service with the CCG; an offshore oceanographic science vessel that will be delivered to the CCG in the coming months; and a class of up sixteen multi-purpose icebreaking vessels (also Polar Class) that is currently in Construction Engineering.
Seaspan is one of the most modern shipyards in North America, following its privately funded $200M+ shipyard modernization, development of a skilled workforce and state-of-the-art, purpose-built infrastructure to deliver large, complex vessels.

Under the NSS, Seaspan has become a major economic and job creation engine. According to an economic analysis conducted by Deloitte, Seaspan has contributed $5.7 billion to Canada’s GDP between 2012-2023, while also creating or sustaining more than 7,000 jobs annually.
Seaspan’s NSS supply-chain has now grown to ~800 Canadian companies from coast-to-coast, with more than half being SMEs.

Coast Guard Cutter Procurement: Background and Issues for Congress, Updated March 5, 2025 –Congressional Research Service

Posted on March 7, 2025 by Chuck Hill

US Capital West Side, by Martin Falbisoner

The Congressional Research Service (CRS) has again updated their “Report to Congress on Coast Guard Cutter Procurement”. (This link will always take you to the most recent edition of the report.) My last post on this evolving document was in reference to the March 25, 2024 update. The report includes a nice one page summary if you are new to our current shipbuilding activities but the news is on pages 27 and 28, the last two pages of the report excluding the Appendixes, which I have reproduced below,

The Administration asked for two FRCs and the House Appropriations Committee has recommended four. This, in addition to the 67 currently funded, would bring the total number of FRC funded to 71 which is the requirement in the current program of record, 58 for domestic use, one lost to a fire in dry dock, six for PATFORSWA, and six for the Indo-Pacific.

It’s not clear to me if the six for the Indo-Pacific is just the six currently planned for Guam or does this refer to six in addition to the three originally planned for Guam that replaced two WPB110s? It has appeared the Coast Guard might also base FRCs in American Samoa. Looking at the numbers that appears to be the case.

It also appears another WMEC 270 that has gone through Service Life Extension Program (SLEP) will be headed for the Pacific.

FY2025 DHS Appropriations Act (H.R. 8752)

House

The House Appropriations Committee, in its report (H.Rept. 118-553 of June 14, 2024 on H.R. 8752, recommended the funding levels shown in the HAC column of Table 1. H.Rept. 118-553 states.

Fast Response Cutter (FRC).—The recommendation provides $335,000,000 to purchase four additional FRCs, economic price adjustments related to the rise in material and labor costs, and post-delivery missionization costs.

Offshore Patrol Cutter.—The recommendation provides the requested $530,000,000 to continue the program of record for these critical assets. The Committee directs the Coast Guard to continue to provide additional program and schedule details, as described in the explanatory statement accompanying Public Law 117–103, as part of the required quarterly major acquisition briefings. (Pages 53-54)

H.Rept. 118-553 also states

Engagement in the Indo-Pacific.—The Committee supports the Coast Guard’s efforts to help develop the maritime capabilities of partners and allies in Southeast Asia. To better assess these efforts, the Committee directs the Coast Guard to provide a briefing within 180 days of the date of enactment of this Act on its work in the Indo-Pacific, including current efforts, opportunities for expansion, and options for improving coordination with and leveraging capabilities with the DOD, especially U.S. Indo-Pacific Command (USINDOPACOM)….

Oceania Operations.—The Committee recognizes the importance of the Coast Guard in maintaining the U.S.’s posture in the Indo-Pacific. The Committee supports the Coast Guard’s efforts to expand its presence in the Indo-Pacific, especially through the ship rider program, and encourages the Coast Guard to continue its coordination with USINDOPACOM and partner and allied nations. To better evaluate these efforts, the Committee directs the Coast Guard to report to the Committee not later than 180 days after the date of enactment of this Act assessing the Coast Guard’s capabilities and operations in the Indo-Pacific. This report should include a list of current assets in the region, any assets and capabilities needed to address unfulfilled requirements, any areas where logistical support is needed, and any changes that must be taken to effectively implement the U.S. Indo-Pacific Strategy. To support the Coast Guard’s Indo-Pacific operations, the recommendation provides $3,000,000 for increased presence of regional Coast Guard Maritime Advisors, Liaison Officers, Attaches, and other foreign engagement positions throughout the Indo-Pacific, and $1,200,000 for Indo-Pacific workforce support including for housing, medical, and childcare access for Coast Guard personnel.

270′ WMEC Service Life Extension Program.—The Committee supports the Coast Guard’s efforts to counter aggression by the PRC in the Indo-Pacific. The recommendation includes $60,000,000 for a service life extension program for one Medium Endurance Cutter, enabling the Coast Guard to deploy an additional support cutter to the Indo-Pacific. The Coast Guard plays a vital role in the Indo-Pacific, but the vast distances in the region and limited resources hamper the Coast Guard’s ability to expand its presence. This Indo-Pacific support cutter will help the Coast Guard increase its activities and better support the U.S. mission in the Indo-Pacific. (Pages 50, 51, and 53)

“USCG Polar Security Cutter Program Offers DOGE An Easy ‘Win’”–Forbes

Posted on February 27, 2025 by Chuck Hill

Forbes’ always perceptive Craig Hooper takes a look at the Polar Security Cutter program and finds it ripe for cancellation, “years late, wildly over-budget, and both the budget and the schedule are at risk of slipping even further into the red…”

I still want to know who decided that the Coast Guard should award this critically important contract to a relatively inexperienced and less than fully successful shipyard even though they had failed to offer a proven design as had been required by the original solicitation and apparently repeatedly lied that the design was building (See the graphic from VT Halter above, “Proven Hull Design”).

I don’t know enough to agree that the Polar Security Cutter contract should be cancelled, but I do think Hooper would agree that it is time to start procurement of the Medium Icebreakers we know we need, even if the first is to be built in a foreign yard.

Given his comments on the Offshore Patrol Cutter (OPC) program in the same article, I think he might also agree that the Coast Guard should be looking at an alternate design for a medium endurance cutter replacement to be built in lieu of at least some of the planned OPCs.

The first OPC has yet to be delivered, and the costs are likely to increase. If the PSC aligns with the OPC’s ugly performance trends, starting PSC construction with this amount of design uncertainty puts the Coast Guard at real risk of an even bigger fiasco…Sadly, these Coast Guard tastemakers don’t reflect that the building rate–as it is now–appears unable to meet the positively glacial building pace set by years-late and massively over-budget Offshore Patrol Cutter.

Thanks to Paul for bringing this to my attention.

“AKER ARCTIC SELECTED TO PROVIDE ADVANCED ICE LOAD MONITORING SYSTEM FOR FINNISH NAVY MULTI-ROLE CORVETTES” –Aker Arctic

Posted on February 24, 2025 by Chuck Hill

Below is an Aker Arctic news release. Frankly I didn’t know there was such a thing as an ice load monitoring system, but it sounds like something we would want on ships going into the Arctic or Antarctic. I presume it is monitoring the role rate (Tups do you have more info?)

Specs for the class have been updated since the graphic above:

Displacement: 4300 tons
Length: 117 m (384′)
Width: 16 m (52.5′)
Draught: 5 m (16.4′)
Speed: 26 knots (48 km/h)
Crew: 73

More on this new class of warships here and here.

Aker Arctic has been chosen to supply its state-of-the-art ice load monitoring system to the Finnish Defence Forces Logistics Command. The contract includes the delivery of Aker Arctic’s ARC ILMS ice load monitoring, measurement and analysis system for the series of four Pohjanmaa-class multi-role corvettes currently under construction at Rauma Marine Constructions for the Finnish Navy.

The ARC ILMS is Aker Arctic’s platform for measuring loads that the ship’s structure experiences when operating in ice-cover waters, providing feedback to the operator on the safety level of the ship in ice.

“Following our recent successes being chosen to supply the ARC ILMS for the Canadian Coast Guard’s Multi-Purpose Vessels (MPV) (here–Chuck) and our collaboration with French cruise company Ponant measuring ice loads on the Le Commandant Charcot as she made her historic trans-Arctic voyage last summer, we are excited with the vote of confidence the Finnish Navy has put in us to supply our ARC ILMS to their important program” said Kari Laukia, Head of Equipment Business and Special Projects at Aker Arctic.

The contract builds on Aker Arctic’s long-term involvement with the Pohjanmaa-class. In addition to the ARC ILMS, Aker Arctic is supplying the ice-strengthened controllable pitch propellers and their pitch control mechanisms, propeller shafts, bearings and shaft seals. In addition to complete design, calculations and material supplies, Aker Arctic is also responsible for installation supervision and commissioning of the propulsion lines.

“Elomatic awarded Polarstern 2 icebreaker design contract” –Marine Log / A Little Late for the Polar Security Cutter

Posted on February 19, 2025 by Chuck Hill

Polarstern 2 rendering: Ocean Architects and Elomatic. This does not look much like the Polar Security Cutter.

As you may recall ,the Polar Security Cutter was supposed to have been based on a proven design. VT Halter Marine Inc. won the contract based on the design of the Polarstern 2, but really Polarstern 2 was, at that point, vaporware rather than a proven design. Its design contract has just been signed almost six years after the award of the contract for the Polar Security Cutter, April 23, 2019.

Marine Log reports,

“Thyssenkrupp Marine Systems (TKMS) has awarded Elomatic Maritime Technologies GmbH a design and engineering contract to support the construction of Germany’s new Polarstern 2 icebreaker.

How did this happen?

No News About Eastern’s Offshore Patrol Cutters / OPC Alternatives

Posted on February 14, 2025 by Chuck Hill

Future USCGC Argus at launch Eastern Shipyard

No News from Eastern:

I was hoping for some news about Eastern’s progress on the Offshore Patrol Cutter (OPC) program, but I could not find any. Eastern has contracts to build four ships,

Argus (915) and Chase (916) to go to San Pedro, CA
Ingham (917) and Rush (918) to go to Kodiak, AK

Reported milestones for the four ships are as follows:

Argus: Steel cut Jan. 7, 2019; Keel laid April 28, 2020; launched Oct. 27, 2023
Chase: Steel cut April 27, 2020; Keel laid May 27, 2021
Ingham: Steel cut Sep. 27, 2021; Keel laid July 15, 2022
Rush: Steel cut Oct. 18, 2022

Nothing since October 2023, not even a report of keel laying for Rush, which should have happened in 2023. Was Rush’s keel laid? Are sea trials being conducted on Argus? WTFO!

The Planned Timeline:

The Congressional Research Service report, “Coast Guard Cutter Procurement: Background and Issues for Congress” noted.

“The posting for the RFP for the Stage 2 industry studies (October 11, 2019–Chuck) included an attached notional timeline for building the 25 OPCs. Under the timeline, OPCs 1 through 7 (i.e., OPCs 1-4, to be built by ESG, plus OPCs 5-7, which are the first three OPCs to be built by the winner of the Stage 2 competition) are to be built at a rate of one per year, with OPC-1 completing construction in FY2022 and OPC-7 completing construction in FY2028. The remaining 18 OPCs (i.e., OPCs 8 through 25) are to be built at a rate of two per year, with OPC-8 completing construction in FY2029 and OPC-25 completing construction in FY2038.

Using these dates—which are generally 10 months to about two years later than they would have been under the Coast Guard’s previous (i.e., pre-October 11, 2019) timeline for the OPC.

The Current Optimistic Timeline:

We are in the middle of FY2025 and still waiting for OPC#1, so we are at least an additional three years late on delivery of USCGC Argus and we are almost certainly an additional two years late getting the first ship from Austal (though I am hoping for a pleasant surprise).

Eastern was expected to deliver one ship every year. I would have expected construction to speed up with experience, but the intervals between steel successive steel cuttings and between successive keel layings never got down to 12 months. But let us presume that Argus OPC #1 will be delivered in 2025 and Eastern will deliver #2- 4 at 12 month intervals.

Austal started cutting steel for OPC #5, Pickering (WMSM-919), on August 29, 2024. I assume they will deliver four years after starting steel cutting and annually thereafter with two per year delivered after #7. It should look like this.

2025 #1
2026 #2
2027 #3
2028 #4 & #5
2029 #6
2030 #7
2031 #8 & #9
2032 #10 & #11 These will replace the last of WMEC210s
2033 #12 & #13. These will begin replacement of Alex Healy and the 13 WMEC270s
2034 #14 & #15 These are the last that will be built under existing contracts
2035 #16 & #17
2036 #18 & #19
2037 #20 & #21 These will begin replacement of the six SLEP WMEC270s
2038 #22 & #23
2039 #24 & #25 These will replace the last of the WMEC 270s

This does assume a smooth continuation of the program, delivering two ships a year without interruption even after exercising all options and completion of existing contracts.

All the WMEC210s will not be replaced until 2032. At that point even the youngest of the 210s would be 63 years old. It is by no means certain any will last that long, but Reliance is already 61 years old.

All WMECs would be replaced by the end of 2039 by which time the youngest WMEC270 will be 48 years old.

Will the program continue uninterrupted after the completion of the currently optioned 15 OPCs? This would be easy only if Austal wins the contract for a Phase 3. Is that a forgone conclusion?

If some other company wins the Phase 3 contract, will they also initially deliver the first three ships at the rate of one ship per year as was done with the first two contracts?

Alternatives:

It can take up to ten years from the beginning of planning to delivery of the first ship. In reality it has taken considerably longer for the first OPC to get this far and we still no finished product. Even if all options are exercised, the last currently contracted OPC will be funded in FY2030 or 2031.

Do we still want to be building a design in 2030 that is 15 years old? Does the Coast Guard now own the design that could be handed over to another contractor to build the last ten ships or would a third yard have to provide a third detailed design, creating a “C” class of OPC?

Now is the appropriate time to consider alternatives.

Assuming we want to continue with the same design, Phase Three might be started with the idea of awarding a contract in FY2027 and delivering one additional OPC each year 2032, 2033, and 2034 by either Austal or a competing shipyard, with the winner producing two per year thereafter, until all 25 are completed. It would allow completion of all 25 a year and a half earlier.

If we want to look at an alternative that could replace the last ten currently planned OPCs and start delivering ships by 2035, we should issue an RFP in 2026.

There are two directions this new design could go.

A cheaper design that can be made in larger numbers. A primary goal would be a smaller crew as a way to reduce operating costs. It might be smaller and cheaper (we already have contracted for more than enough ships to do Alaska patrols), but should be able to support alternative mission modules and unmanned systems.
Ships that can be more readily upgraded for a wartime role. We might accelerate the design process by looking at the European Patrol Corvette, Australia’s Tier 2 combatant under the AUKUS umbrella, or if the country needs an ice capable combatant look at Finland’s Pohjanmaa-class corvette.

“Canadian shipyard in talks to buy US shipbuilder amid trade war talk” –Defense News

Posted on February 9, 2025 by Chuck Hill

Canada’s Polar Icebreaker

After the continued frustration of the Polar Security Cutter program, the ICE Pact agreement between Finland, Canada, and the US seems promising, but we have heard little about how it will work or what it will produce. Forbes discusses the possibilities here.

We may be seeing the first steps of implementation as Canada’s Davie shipyard, which has already purchased a shipyard with a long history of building icebreakers in Finland, seeks to buy a shipyard in the US. There aren’t many possibilities, I would guess either the old Navy yard in Vallejo that has been doing the five year rolling service life extension on Polar Star or the Philly Shipyard currently building “National Security Multi-Mission Vessels” for the merchant marine academies.

Defense News reports.

Davie, a Quebec shipbuilder set to play a key role in a joint icebreaker production agreement between Canada, the United States and Finland, is moving forward with plans to expand its operations south of the border despite a looming trade war threatening the continent.

As part of the expansion, the Canada-based multinational shipbuilder has set out to acquire an American shipyard, which would secure an initial and important footprint in the U.S. for the company.

Davie is expected to build Canada’s second in class large Polar Icebreaker and six “Program” Icebreakers.

“This Icebreaker Has Design Problems and a History of Failure. It’s America’s Latest Military Vessel” –Military.Com / Was Halter Marine Ever Really Qualified to Build the PSC?

Posted on January 25, 2025 by Chuck Hill

The tug Aiviq traveling with the mobile drilling unit Kulluk in tow 116 miles southwest of Kodiak City, Alaska, in 2012. Credit: U.S. Coast Guard | Petty Officer 2nd Class Chris Usher

Military.com provides an article, originally published by ProPublica, that questions the acquisition of the new USCGC Storis, formerly M/V Aiviq., suggesting undue influence in the decisions to procure the vessel and to homeport it in Anchorage.

Photo of a model of Halter Marine’s Polar Security Cutter seen at Navy League’s Sea-Air-Space Exhibition have surfaced. Photo credit Chris Cavas.

We would like to think that the Coast Guard has free reign in its award of contracts, but that is, of course, not entirely true.

With this and with the long history of difficulties with the Polar Security Cutter (PSC) program, I have to wonder about the decision to award the contract to award the decision to relatively inexperienced Halter Marine for a design that did not meet the RFP requirement that the design be based on a proven design.

In February 2017, the USCG awarded five fixed-price contracts for heavy polar icebreaker design studies to Bollinger Shipyards, Italy’s Fincantieri Marine Group, National Steel and Shipbuilding Company, Huntington Ingalls Industries, and Singapore’s Halter Marine Inc .

On 23 April 2019 Halter Marine was awarded a $745.9M contract for detailed design and construction of the lead ship. This was probably the low bid, but it has proven an unrealistically low bid.

Of the five contenders, Halter Marine was the least experienced and the least familiar to the Navy and Coast Guard.

Halter Marine had changed hands in 1983, 1996, 1999, 2003, and 2022, not a picture of stable management, and it was not partnered in this offer with any experienced builder of icebreakers.

At the time of the award, Halter Marine had built two ships for the US Navy, none for the Coast Guard. The two ships for the Navy were USNS Howard O. Lorenzen (T-AGM-25), 12,642 tons, a Missile Range Instrumentation Ship and USNS Maury (T-AGS-66), 5000 tons, an oceanographic survey ship.

The Navy’s experience with the construction of USNS Howard O. Lorenzen might have raised red flags. Defense News’ Chris Cavas reported,

“The new ship, built under an initial $199 million contract awarded in 2006, has been under construction at VT Halter’s yard since August 2008, when delivery was scheduled for June 2010. The design is based on a pair of Navy survey ships built in the mid-1980s.

“The Navy’s Board of Inspection and Survey, known as INSURV, conducted the Lorenzen’s acceptance trials in the Gulf of Mexico during the week of May 9, …”

“The trial “was reported as unsatisfactory” by INSURV…The failed grade was due to three major discrepancies – thrust bearing temperature, and steering and anchor demonstrations. Three of 15 graded areas – electrical, damage control and aviation – were also graded unsatisfactory.

“INSURV recommended that acceptance not take place until the systems “can be fully re-demonstrated.”

“…In recent years, problems have emerged with several ships under construction at the Moss Point yard for U.S. government customers.

“Last fall, the National Oceanographic and Atmospheric Administration (NOAA), for which VT Halter built a number of fisheries research ships, abruptly canceled completion of a new research ship when it was nearly finished, claiming it was overweight and unable to carry out its coastal mapping mission. The ship was seized by NOAA and moved elsewhere for completion and modifications.

“In 2005, contract disputes led the U.S. Army to cancel completion of a logistics vessel and delay delivery of two others.

The Coast Guard might also have looked at their safety record.

“…in 2009, unsafe working conditions led to an explosion that killed two employees and injured five others. The company was fined $1.32 million by the United States Department of Labor for 17 willful and 11 serious violations, including willfully exposing workers to toxic fumes in a confined space. According to Secretary of Labor Hilda L. Solis, the explosion “was a horrific and preventable situation. VT Halter Marine was aware of the hazards and knowingly and willfully sent workers into a confined space with an explosive and toxic atmosphere.”

The use of a never completed design should have disqualified Halter Marine. With this as background, could the Coast Guard have missed the warning signs, or might they have been overruled in the selection of the yard? Could this have been a case of undue influence? Who made the final decision, the Coast Guard/Navy acquisition team, the Commandant, the Department of Homeland Security, or someone else? and why?

“Hellenic Navy names four (former USCG) Island-class patrol vessels (Video)” –Naval Today

Posted on January 23, 2025 by Chuck Hill

Credit: Ministry of National Defense (Greece)

Naval Today reports on the commissioning of four former US Coast Guard Island class cutters into the Greek Navy.

Lots of friendly nations are benefitting from receipt of previously well-maintained US Coast Guard vessels through Foreign Military Sales. Their availability helps our friends in the maintenance of a global rules based maritime environment. Ships that are no longer economical to support in the US, may be maintainable in other countries where labor costs are lower.

This movement of retiring ships should be part of regular Coast Guard planning. We should set a reasonable life, say 30 years for large ships and 25 for smaller, and produce a 30 year ship building plan. Yes, it may change, and it should, but it would establish expectations for future budgets. We should produce a new projection every year.

Chuck Hill's CG Blog

Category Archives: Shipbuilding