New Canadian Shipbuilding Strategy

[Kirkhill]

Meanwhile:

Haisla Nation and Seaspan awarded LNG Canada escort and harbor tugs contract
Posted August 27, 2019 & filed under Press Releases.


Front row L to R: Bart Reynolds, President Seaspan Marine, Crystal Smith, Chief Councillor Haisla Nation, Frank Butzelaar, CEO Seaspan Marine Transportation – Back row: Representatives from Seaspan, the Haisla Nation and union leadership witnessed the signing of the agreement.

Download PDF

North Vancouver, B.C. – HaiSea Marine, a joint venture partnership between the Haisla First Nation and Seaspan ULC, today announced the signing of a contract award with LNG Canada to design, build and operate escort tugs and harbor tugs required for LNG Canada’s LNG export facility in Kitimat, British Columbia.

The value of the contract award is approximately $500 million over 12 years and will result in employment for approximately 70 mariners and six onshore staff, plus other roles for employees of the partner organizations.

“HaiSea Marine is majority-owned by the Haisla,” says Crystal Smith, Chief Councillor of the Haisla Nation. “Our agreement with Seaspan ensures our members will have access to employment, training and procurement opportunities on the contract with LNG Canada. The opportunity to work locally in the marine industry is of great significance to the Haisla people.”

Benefits will also be available to the Gitxaala Nation and the Gitga’at Nation through a transit agreement with the Haisla.

During operations, LNG carriers will require harbour tugs to provide berthing and unberthing assistance in Kitimat. The tugs will also provide transportation of material and personnel, marine emergency response, firefighting and oil pollution response. Escort tugs are required to escort LNG carriers from Triple Island to the facility in Kitimat, approximately 159 nautical miles. The tugs are yet to be constructed and will go into service shortly prior to production commencing, which is estimated before mid-next decade.

“Seaspan owns a large fleet, has extensive new build experience and has the largest pool of tug masters and engineers in BC, providing us with the scale to train for and operate the project in a cost-efficient manner,” says Frank Butzelaar, CEO Seaspan Marine Transportation. “Our innovative training and safety programs ensure that HaiSea mariners will be well prepared to support the safest project on earth.”

Vancouver-based Robert Allan Ltd., an independent, privately owned firm of consulting naval architects and marine engineers, has been contracted to design the new vessels.

“LNG Canada has committed to ensuring benefits from our project accrue to First Nations, local communities and BC businesses, and this contract is part of that commitment,” says Peter Zebedee, CEO of LNG Canada. “The legacy the LNG Canada project will leave, in part, is the long-term, high-skilled jobs for First Nations and local community members. HaiSea was selected because they were able to demonstrate technical capability, operational expertise, and training at world class levels.”

About HaiSea Marine
HaiSea Marine is a joint venture partnership between the Haisla First Nation and Seaspan ULC. Both partners have considerable experience and knowledge of operating in Northern British Columbia, making HaiSea a natural choice for providing responsible and dependable marine services in the region.

About LNG Canada
The LNG Canada joint venture is building a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada, which will initially consist of two LNG processing units, referred to as “trains.” LNG Canada is a joint venture comprised of Royal Dutch Shell plc, through its affiliate Shell Canada Energy (40%); PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25%); PetroChina Company Limited, through its subsidiary PetroChina Canada Limited (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15%); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5%). It is operated through LNG Canada Development Inc.

Media contacts:

Seaspan ULC
Corinna Bork
corinna.bork@seaspan.com

Haisla Nation
Sarah Artis
sartis@haisla.ca

LNG Canada
media@lngcanada.ca

https://www.seaspan.com/haisla-nation-seaspan-awarded-lng-canada-escort-harbor-tugs-contract

Native owned and operative escorts. Native owned ports.  Native owned pipelines.  BC jobs.

Tanker moratorium being challenged by natives.

I feel the scrum wheeling.

 

[Navy_Pete]

For costing, keep in mind that TBS requires us to include all project costs, so that includes the ships, the design, spares, training, any infrastructure, contingency and some other things, and occasionally artificially inflates everything to end of project year dollars.  That accounts for a good chunk of the bloat, especially when the contingency at the start of the project can be 25+%.  You won't get anything near actual costs until they have finalized requirements, gone through the design spiral and sourced the major bits. A bunch of it is also internal things like SWE for project positions and similar, so massive chunks of this aren't intended to go to the shipyard or even leave govt coffers.

No one else really does reporting like this on defence contracts; the AG report from about 5 years ago on the AOPs budget really highlighted this and why it makes it impossible to do apple to apple comparisons.

Does look pretty good though if you can announce a huge contract before an upcoming election, so would take any of these estimates with a bag of road salt.

As an aside, Seaspan ULC is a separate legal entity from VSY shipyards, and while Seaspan Marine has the same parent company, they are independently operated.

 

[Colin Parkinson]

Major milestone for the NSPS few people are talking about, the first ship of the program enters service

https://gcaptain.com/canadas-first-offshore-fisheries-science-vessels-enters-service-with-coast-guard/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Gcaptain+%28gCaptain.com%29&goal=0_f50174ef03-94c5ebdc26-139922301&mc_cid=94c5ebdc26&mc_eid=c9f44d7f09

 

[FSTO]

Major milestone for the NSPS few people are talking about, the first ship of the program enters service

https://gcaptain.com/canadas-first-offshore-fisheries-science-vessels-enters-service-with-coast-guard/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Gcaptain+%28gCaptain.com%29&goal=0_f50174ef03-94c5ebdc26-139922301&mc_cid=94c5ebdc26&mc_eid=c9f44d7f09

Wasn't NSPS initiated under the Harper Conservatives? Not cool at all for this Liberal government to be touting that fact!

 

[Navy_Pete]

Wasn't NSPS initiated under the Harper Conservatives? Not cool at all for this Liberal government to be touting that fact!

That was the NSPS (Procurement Strategy).  The NSS is the Liberals strategy... or something. It was 'rebranded' after the election, but actually made sense to drop the P, as it was initially only envisioned to get the umbrella agreements in place, but then got rolled into DPS and the whole governance thing became this bureaucratic hydra (maybe Cerberus is a better metaphor?)

 

[Uzlu]

A bit of information on the six new icebreakers.

On Aug. 2, Public Services and Procurement Canada called for companies interested in bidding on the contract — it could be worth more than a billion dollars when it's awarded in late 2020 — to apply by Aug. 15. Work would likely commence in 2023.

https://www.niagarafallsreview.ca/news-story/9567601-port-weller-dry-docks-owner-hopes-politics-won-t-hurt-bid-on-major-project/

 

[MarkOttawa]

Getting these icebreakers for say $200 million each is nonsense given our shipbuilding costs--see:

...
Canada plans to build up to 18 new coast guard ships at a cost of $15.7 billion in an effort to renew Canada's Coast Guard fleet,  Prime Minister Justin Trudeau announced...

According to a government statement, the $15.7 billion figure is an "early estimate" of the cost for construction, support, infrastructure, project management and cost overruns, or contingency funding. The costs of each ship will be announced, the government said, after contract negotiations have been completed.

The 16 multi-purpose vessels [for Seaspan] will be used for light icebreaking, environmental response and search and rescue while the two new Arctic and offshore patrol ships will perform duties further offshore...
https://www.cbc.ca/news/politics/canadian-coast-guard-ships-building-trudeau-1.5144903

Mark
Ottawa

 

[Kirkhill]

As I understand it Seaspan expects to be contracted to supply MEMTVs and OPVs

Vancouver Shipyards will build the Non-Combat vessels, including the Offshore Fisheries Science Vessels (OFSV), Offshore Oceanographic Science Vessel (OOSV), Joint Support Ships (JSS), Polar Icebreaker (PI), Medium Endurance Multi-Tasked Vessels (MEMTV), and Offshore Patrol Vessels (OPV).

https://www.seaspan.com/nationalshipbuildingstrategy

According to the Coast Guard an MEMTV is:

A large (approx. 65 metres in length), multitasked, shallow draught vessel.
Primarily used for aids to navigation, Search and Rescue, science and environmental response; has some icebreaking capability.

While an OPV is:

A large (approx. 75 metres in length), offshore vessel  that can operate beyond 120 NM including outside the Exclusive Economic Zone; stay at sea for up to six (6) weeks; operate year-round in Canadian waters (except the Arctic archipelago); and transit light ice-infested waters.
Designed to support law enforcement; primarily used for fisheries enforcement and search and rescue.

http://www.ccg-gcc.gc.ca/e0013696


There seems to be a lack of congruity in expectations and vocabulary between the Coast Guard and the politicians.

 

[Uzlu]

Getting these icebreakers for say $200 million each is nonsense given our shipbuilding costs

But nowhere in that article does it state or hint at the price of each of these new icebreakers.  Assuming—perhaps a reasonable assumption—that these icebreakers will be Polar Class 3, they will definitely cost a lot more than, say, $200 million each.

 

[MarkOttawa]

Uzlu: Article says the contract for six icebreakers "could be worth more than a billion dollars when it's awarded in late 2020".

This is what the new vessels are for, mainly non-Arctic--anyone know the Polar Class of CCG's current medium icebreakers?

"...
Coast Guard program icebreakers are essential to Canada’s economy by supporting year-round marine trade in Eastern Canada, the St. Lawrence waterway and the Great Lakes. They enable eastern Canadian ferries to operate during the winter time, and are critical to Canada’s commercial fisheries. The program icebreakers are also used to provide service to Canada’s northern residents by supporting the annual re-supply of goods to Canada’s Arctic communities and their industries..."
https://www.navalnews.com/naval-news/2019/08/six-new-icebreakers-to-be-built-for-canadian-coast-guard/

Mark
Ottawa

 

[Kirkhill]

Perhaps there are some hints here.

https://vardmarine.com/vard-marine-wins-canadian-coast-guard-concept-exploration-contract/

 

[Uzlu]

Article says the contract for six icebreakers "could be worth more than a billion dollars when it's awarded in late 2020".

That is a bit like saying if a Canadian is going to buy a new car—not used car—he could be paying more than $5 000.

 

[Colin Parkinson]

"carrying on with the development of the designs for the Offshore Oceanographic Science Vessel"  Hmmm rumour has it that design has some serious flaws, which is why it was delayed.

 

[Navy_Pete]

Are the requirements or equipment selection finalized yet? Also, was this not one of the ones that came with some kind of in house initial design?

Hard to blame this shipyard if our scientists can't make up their mind, and it's starting from the back foot.  Lots of other things to lay at their feet, but this particular project seems like a bit of a unicorn.

 

[MarkOttawa]

How serious people in Canada approach shipbuilding--from Aug. 29:
   

Fednav celebrates its birthday with a aptly named ship

At the Oshima Shipyard in Japan, Fednav Limited took delivery today of the Federal Montreal [emphasis added], its newest Great Lakes-suitable handysize vessel. The ceremony was attended by senior management from both Fednav and the shipyard.

The Federal Montreal is a 34,500 DWT international ice-class bulk carrier, flagged in the Marshall Islands. Built to trade in the St. Lawrence River and the Great Lakes, the vessel is certified by DNV GL and is equipped with the latest environmental protection technology...

Celebrating its 75th anniversary this year, Fednav Limited is Canada's largest international bulk shipping company. Its fleet is comprised of close to 125 bulk carriers trading worldwide, 65 of these are owned. From offices on four continents, the company operates the largest fleet of Great Lakes-suitable ocean-going vessels, the largest fleet in the world of ice-class bulk carriers, and three icebreaking cargo ships that service the Arctic year round [emphasis added].

For more information, please visit www.fednav.com...

https://www.fednav.com/en/media/fednav-celebrates-its-birthday-aptly-named-ship

As for those icebreaking ships, this from 2014:

The World’s Most Powerful Bulk-Carrying Icebreaker Joins Fednav Fleet

The most powerful bulk-carrying icebreaker in the world, the MV Nunavik has arrived in Canada.

Built for Fednav at Japan Marine United’s (JMU) Tsu Shipyard, the ship will be used to export the concentrates produced at the Canadian Royalties owned Nunavik Nickel mine at Deception Bay in northern Quebec. The vessel will also supply the mine with equipment and fuel, year round.

Rated Polar Class 4, this highly specialized icebreaker is similar in design to the Umiak I, the Fednav ship servicing Vale’s Voisey’s Bay operation in Northern Labrador.

The Nunavik will sail unescorted in Arctic regions and will operate in the extreme winter conditions of the Canadian Arctic. It is capable of maintaining continuous progress of 3 knots in 1.5 m of ice.

The vessel was designed by Fednav and JMU, and will sail between Deception Bay and Northern Europe on a year-round basis [emphasis added]. The engine produces 29,600 hp, three times the power of a conventional bulk carrier of the same size. The Nunavik will be supported by Enfotec Technical Services, a Fednav subsidiary to provide up to date information on ice conditions as well as technical support to the inhouse IceNav navigation system.

“The arrival of this new ship represents Fednav’s commitment to mining development in the Arctic, as well as our dedication to technological development and energy efficiency,” says Paul Pathy, President and Co-CEO of Fednav Limited.

In naming this new ship Nunavik, Fednav wanted to recognize the inhabitants and the region in which it will operate as well as its project partner, Nunavik Nickel.

The Nunavik is equipped with the latest environmental technologies, such as a Tier II engine that reduces nitrogen oxide emissions by 20%, and the first ballast treatment system installed on a Canadian-owned vessel.

fednav, March 21, 2014
https://worldmaritimenews.com/archives/107200/the-worlds-most-powerful-bulk-carrying-icebreaker-joins-fednav-fleet/

Note how blindingly fast Fednav got the ship:

...
In October 2012, Fednav announced that it had signed a contract with Japan Marine United Corporation for the construction of a new ice-strengthened bulk carrier at the Tsu shipyard in Tsu, Japan...
https://en.wikipedia.org/wiki/Nunavik_(ship)#Construction

Also:

NUNAVIK'S LOG BOOK
October 17, 2014
ARRIVAL AT DESTINATION

The MV Nunavik recently completed its historic [UNESCORTED] voyage through the Northwest Passage...

September 25, 2014
Longitude:
-106.91667
Latitude:
74.066950

Day 7, Starting the Descent 5:13 PM
...
Sometime tomorrow, the Nunavik will be the first commercial ship since the SS Manhattan in 1969, to transit Prince of Wales Strait...

https://www.fednav.com/en/voyage-nunavik

Mark
Ottawa

 

[Kirkhill]

Next thing you know you'll be telling us that oil and gas can be safely transported through the ice  ;D

The double acting ship concept has been selected as the main transportation concept for the Yamal LNG project.[28] In July 2013, Daewoo Shipbuilding & Marine Engineering (DSME) won the tender for the construction of sixteen Arc7 ice class LNG carriers and the contract for the first vessel, worth 339.3 billion won ($316.4 million), was signed in March 2014.[29] The Arctic LNG carriers, fitted with three 15 MW ABB Azipod propulsion units, are the largest icebreaking vessels in the world with an independent ice-going capability in level ice up to 2.1 metres (6.9 ft) in thickness.[30] The first vessel, Christophe de Margerie, was launched in January 2016.[31]

https://en.wikipedia.org/wiki/Double_acting_ship

https://safety4sea.com/the-worlds-first-icebreaker-condensate-tanker-launched-in-guangzhou/

 

[suffolkowner]

Uzlu: Article says the contract for six icebreakers "could be worth more than a billion dollars when it's awarded in late 2020".

This is what the new vessels are for, mainly non-Arctic--anyone know the Polar Class of CCG's current medium icebreakers?

Mark
Ottawa

Mark and Uzlu

I think the medium icebreakers(Type 1200) are equivalent to PC4 but there are only 4 of them plus the 3 Davie conversions. So the soon to be 7 to be replaced with 6. I wonder what the plans are for the St. Laurent and Terry Fox?

 

[Uzlu]

I think the medium icebreakers(Type 1200) are equivalent to PC4 but there are only 4 of them plus the 3 Davie conversions. So the soon to be 7 to be replaced with 6. I wonder what the plans are for the St. Laurent and Terry Fox?

I think the six new icebreakers are going to replace the medium icebreakers and Terry Fox.  I am assuming Louis S. St-Laurent is going to be replaced with the future CCGS John G. Diefenbaker.

 

[MarkOttawa]

Uzlu:

Surely the CCGS Pierre E. Trudeau if fils wins the election.

Mark
Ottawa

 

[Uzlu]

Trade tribunal investigating allegation of bias in search for third shipyard

OTTAWA -- A trade tribunal has agreed to investigate the federal government's plan to add a third shipyard to its multibillion-dollar shipbuilding strategy following allegations the process is rigged in favour of a particular Quebec shipyard.

However, it's unclear how far the Canadian International Trade Tribunal will be able to delve into the case after the federal Liberals recently restricted its ability to review big-ticket government purchases.

Heddle Marine Services, based in Hamilton, Ont., first asked the tribunal to launch an investigation last month, alleging some requirements needed to qualify for consideration as the third shipyard seemed aimed at disqualifying all contenders except Quebec's Chantier Davie.

The federal government subsequently amended some of the requirements, including one related to the size of vessel eligible shipyards must be able to build, which Heddle had said would disqualify it from contention.

But despite the changes, Heddle told the tribunal it still wants the search for a third shipyard suspended pending the results of an investigation into whether the process was biased toward Davie.

In a letter to Heddle, the tribunal said it "has decided to conduct an inquiry into the complaint." However, it rejected Heddle's request to suspend the shipyard search, saying it expects its investigation to finish before a contract is awarded.

Heddle president Shaun Padulo welcomed the tribunal's decision, saying in an interview that his shipyard wants a fair chance at winning the right to become the third shipyard, which will be tasked with building six icebreakers for the coast guard.

Heddle has partnered with Dutch firm Damen Shipyards in its application to be the third yard, which was submitted last week.

Asked why he is pressing ahead with his complaint despite the changed requirements, Padulo said he wanted the tribunal to "give us an objective view" on the original criteria.

"At the same time," he added, "even after the amendments, I'm still concerned about what we perceived as a bias toward Davie."

The federal procurement department did not respond to requests for comment on Tuesday. It is required to respond to Heddle's complaint within 25 days of having received it.

In a statement, Davie spokesman Frederik Boisvert said the Quebec shipyard is aware of Heddle's complaint to the trade tribunal and is evaluating its options.

"Complaints to the Canadian International Trade Tribunal should be made solely based upon factual, relevant information and not simply as a forum to launch unsubstantiated and misleading attacks against other companies in the hope of generating some attention," he said.

Yet even as the tribunal gears up for an investigation, there is the threat it could be shut down at any time.

That is because the Liberal government in June rewrote the regulations governing the tribunal, whose role is to ensure the government follows proper procurement rules, by making it easier to exempt purchases for national-security reasons.

The change, which came without warning or consultation with industry, followed previous concerns from the tribunal about an excessive use of national-security exemptions and requests the government invoke such exemptions only when necessary.

Yet rather than tighten the use of the exemption, government officials can now cite it without any explanation.

The tribunal in its letter to Heddle couldn't say if the Liberals properly invoked the exemption in launching the search for a third shipyard, but the government can wait until just before a contract is awarded to make such a designation and scuttle any review.

While he acknowledged the exemption is a "real concern for us," Padulo said: "It's not like this is wartime and we need to build warships to defend our coastline.

"I think there's a very real need for the coast guard, but for them to invoke national security would be just one more example of them using a mechanism to favour a certain shipyard or supplier. And I hope they don't go that route."

https://www.ctvnews.ca/business/trade-tribunal-investigating-allegation-of-bias-in-search-for-third-shipyard-1.4577781