B.C. company awarded $230 million shipbuilding contract

A Vancouver-area shipyard has been handed a $230-million contract to help create the latest vessel in the federal government’s national shipbuilding plan. (Photo: Harjit Sajjan/Facebook)

VANCOUVER—A Vancouver-area shipyard has been handed a $230-million contract to help create the latest vessel in the federal government’s national shipbuilding plan.

The agreement will see shipbuilding company Seaspan develop and finalize plans to build two joint supply ships for the Royal Canadian Navy, with construction of the vessels expected to begin next year.

Judy Foote, minister of procurement and public services, announced the contract in North Vancouver on Tuesday, saying the deal will help create stable middle-class jobs.

Defence Minister Harjit Saajan says the ships will increase the “range, flexibility and duration” of Canada’s navy by resupplying vessels at sea with fuel, food, ammunition and more.

The previous Conservative government originally launched the national shipbuilding strategy in 2010, budgeting $35 billion to rebuild the navy and coast guard fleets while also creating a sustainable shipbuilding industry on both the east and west coasts.

Foote declined comment Tuesday on the program’s total cost, saying the number won’t be known until all of the vessels have been built and that she doesn’t want to give out preliminary numbers.