Canada Awards Dual Polar Icebreaker Contracts as Arctic Competition Heats Up

Canada has awarded contracts to two shipyards for the construction of new polar icebreakers, part of a strategic move to enhance its Arctic capabilities.

Quebec-based Davie Shipbuilding on Saturday announced it has secured a CAD $3.25 billion contract, while Vancouver-based Seaspan Shipyards said Friday received a separate agreement to construct heavy polar icebreakers for the Canadian Coast Guard.

The contracts come as part of Canada’s National Shipbuilding Strategy and amid growing geopolitical tensions in the Arctic, where Russia and China have increased their cooperation in military activities and shipping routes.

Davie’s vessel, dubbed the Polar Max, will leverage expertise from Finnish shipbuilder Helsinki Shipyard, which Davie acquired in 2023. Helsinki Shipyard brings significant experience, having constructed over 50% of the world’s icebreakers.

“Today’s announcement is truly transformative,” said James Davies, Davie President & CEO. “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.”

Seaspan said the icebreaker its building will feature advanced capabilities, including operation in temperatures down to -50°C. Technical specifications include a length of 158 meters, width of 28 meters, and displacement of 26,036 tonnes. The ship will be equipped with more than 40MW of installed power, ice-classed azimuthing propulsion systems, and scientific laboratories.

Construction timing differs between the yards. Seaspan said it plans to begin construction in April 2025, while Davie’s work will commence in 2025 with delivery expected by 2030.

The projects represent a significant milestone in Canadian shipbuilding, marking the first time in over 60 years that polar icebreakers will be built in Canada.

Seaspan touted the project as a key milestone in Canada’s National Shipbuilding Strategy (NSS), a long-term, multi-billion-dollar program to modernize the country’s naval and coast guard fleets while revitalizing the domestic shipbuilding industry. The strategy focuses on two vessel categories: non-combatant vessels (icebreakers, offshore science vessels, and support ships) and combatant vessels (frigates and Arctic offshore patrol ships).

The Seaspan icebreaker will be the seventh ship designed and built by Seaspan under the NSS and the fifth Polar Class vessel for the Canadian Coast Guard. The company completed the functional design in 2024, collaborating with Finnish companies experienced in Arctic vessel design.

“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,” stated John McCarthy, CEO of Seaspan Shipyards.

Davie was named the third official partner to the National Shipbuilding Strategy in April 2023, joining Irving Shipbuilding Inc. in Nova Scotia and Seaspan. For its role, the company has secured an initial CAD $8.5 billion package that includes up to seven heavy icebreakers and two large hybrid-powered ferries.

The contracts are also part of a broader initiative under the ICE Pact, a 2024 agreement between the United States, Canada, and Finland to collaboratively develop Arctic and polar icebreakers.

The development comes as the United States faces challenges with its own icebreaker fleet. The U.S. Coast Guard’s Polar Security Cutter program has experienced delays, with delivery now pushed beyond 2030.

The icebreaker projects are expected to generate substantial economic benefits. Seaspan’s portion alone will employ more than 1,000 local shipbuilders and engage over 800 Canadian companies in the supply chain. Meanwhile, Davie plans to invest more than $200 million in local small- and medium-sized businesses.

“The National Shipbuilding Strategy is providing the Canadian Coast Guard with its fleet of the future,” stated The Honourable Diane Lebouthillier, Minister of Fisheries, Oceans and the Canadian Coast Guard. “The polar icebreaker 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 vessels will support multiple missions, including scientific research, environmental protection, and national security operations, while ensuring safe navigation in Arctic regions.

“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.

In 2024, Davie said it intended to make a significant, long-term commitment in the American shipbuilding industry, pending final site and partner selection, as part of a Biden Administration effort to boost U.S. shipbuilding alongside the ICE Pact.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up