Quebec Pushing for more Federal Shipbuilding Work

By: David Pugliese, Defence Watch

Quebec’s National Assembly has unanimously adopted a motion in support of the federal government re-examining the National Shipbuilding Strategy and how work on that strategy is allocated. The motion on Friday calls for more work to be directed to Quebec-based Davie Shipbuilding.

MV Asterix departs Halifax Harbour on 11 April, 2018 for the Pacific coast to work with Maritime Forces Pacific. Canadian Forces photo.

Davie has already converted one supply vessel, the Asterix, which is currently at the centre of the legal battle Vice Admiral Mark Norman faces. It is also converting a fleet of used icebreakers for the Canadian Coast Guard.

Quebec’s politicians want the Liberal government to proceed immediately with a second supply ship from Davie.

Not surprisingly, Davie officials and industry affiliates welcomed the political support and issued a news release Friday highlighting the National Assembly’s position.

“In order to ensure the success of the government’s defence policy – Strong, Secure and Engaged – as well as the navy’s Leadmark 2050 plan, we need to begin the construction of a second ship without delay,” James Davies, President of Davie Shipbuilding, said in a statement.

Irving and Seaspan, the shipyards selected to perform the major chunk of work under the shipbuilding strategy, are opposed to additional contracts going to Davie. Irving, in particular, has voiced its concern.

Seaspan shipyards in Vancouver will build the first of two Joint Support Ships, scheduled to be ready in the 2021-2022 timeframe.

This is not the first time that Quebec has pushed for more work under the shipbuilding strategy. In December 2017, politicians and unions in Quebec tried to turn up the heat on the Liberal government, questioning why Davie shipyards wasn’t getting work from the federal government. They highlighted the capability of the shipyard to deliver a second Asterix-type ship quickly.

But Transport Minister, and former navy officer, Marc Garneau said the federal government didn’t need another supply ship.
”We cannot artificially create a need for something that doesn’t exist,” he told reporters at the time.

He did not explain how one supply ship would support naval fleets operating on two coasts.

RCN iAOR M/V Asterix Refuels Two US Navy Vessels

By: David Pugliese, Defence Watch

MV Asterix, accompanying Royal Canadian Navy ships, replenished two US Navy vessels at the same time in the North Atlantic this week. The USN ships are USS Bainbridge and USS Mitscher. Davie, the shipyard that converted the Asterix into a resupply vessel, released photos of the event. See photo below:



The refueling operation comes the same week Vice Admiral Mark Norman’s case is back in court. Norman is charged by the RCMP with one count of breach of trust. The police force alleges Norman released information that the Trudeau government wanted to derail the Asterix project. That information eventually found its way into the news media, forcing the Liberal government to back away from its plan.

Norman says he did nothing wrong and he looks forward to proving his innocence.

Project Resolve: RCN will have option to purchase iAOR

The Asterix is now in the Levis, Quebec shipyard, and has started its 17-month long conversion from a 1,700 TEU Boxship into an Auxiliary Oil Replenishment (AOR) vessel which will be leased to the Royal Canadian Navy from 2017-2021.

While an official contract between the Federal Government and Davie Shipbuilding has yet to be signed. Currently the Government is in Caretaker Mode after the Election; which will last until at least November 4, 2015; and therefore cannot officially proceed. Davie announced earlier this week that the Asterix (currentley being labled by some as the Resolve-Class) interim AOR (iAOR) will be made available to the RCN until both Queenston-Class AORs are operational; which is currently estimated at some point in 2021.

Following the five year lease to the RCN, Davie announced that it will the offer to sell the vessel to the Navy. Davie also offered to convert a second Boxship into an iAOR for the Navy, and have it operational by late 2018, according to the Navy - they are not interested in a second iAOR (despite the 50% reduced cost associated with the iAORs compared to the AORs)

For now, we wait until the new Government is formed. Justin Trudeau, Prime Minister-Elect will announce his cabinet on November 4, 2015 - and from there everything could change. Perhaps the Navy will consider a second iAOR, and save on leasing a Spanish or Chilean AOR during the 2017 calendar year. Currently a Spanish AOR will serve on the East Coast at some point in 2016 with the RCN.

Project Resolve: Navy Isn't Interested in 2nd iAOR

With Project Resolve now fully underway, and an official agreement reached between Davie Shipbuilding and the Government of Canada, the conversion of the Asterix boxship into an Navy AOR is taking place. The Asterix will be ready by summer 2017, and will serve as the Royal Canadian Navy's main AOR until the Queenston-Class AORs (based on the Berlin-Class) arrive sometime between 2020-2021.

Yesterday, Davie made an offer to the Navy to convert a second boxship for the Navy - a sister ship to the Asterix could be converted, and be ready for service by 2018 according to Davie.

The Royal Canadian Navy is not interested. Instead they will lease a Chilean AOR and a Spanish AOR for training purposes throughout 2016.

This almost immediate refusal of the offer comes with the question why not? The lease agreements with Davie could save the RCN money, and when the conversions only cost $400 million - less than half the cost of building an AOR (estimated to be around $1 Billion) Why would the Navy not agree to the solution? Even once the Asterix is ready, the Navy will only have one AOR; therefore one coast will be without the AOR services, unless a foreign AOR is also leased - so why not lease domestically?

Maybe a new government on October 20th will convince the Navy that this is a good deal, and should take the offer. Give jobs to Canadians.