It’s not just the Canadian Armed Forces that suffer from galloping cost increases for their equipment, as the Canadian Coast Guard’s original (2008) $720 million budget for a new icebreaker to be called CCGS John G. Diefenbaker is a dim distant memory:
Originally ordered in 2008 for delivery in 2017, the CCGS John G. Diefenbaker is now expected to enter service in 2030.
Canadian Coast Guard conceptual rendering, 2012.
Canada could face problems buying the specialized steel needed for its new $7-billion polar icebreakers, further driving up costs for taxpayers.
The polar-class icebreaker project was originally supposed to cost $1.3 billion for the construction of one vessel. Two icebreakers will now be built, but the cost has skyrocketed to an estimated $7.25 billion.
One of the top problems now facing shipbuilders is obtaining the special hardened steel needed for the icebreakers. In a response to questions from the House of Commons, the Canadian Coast Guard outlined the top 10 risks associated with the icebreaker project. Number one was listed as “Challenges sourcing specialized EH50 steel, which may impact cost, schedule and scope” of the project.
Other issues involved the type of helicopter that would operate from the vessels, the capacity of shipyards to do the work and potential design changes. All could contribute to boosting the project’s cost even further.
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In 2021, the Liberal government decided to purchase two polar-class icebreakers, one to be built at Seaspan and the other at Davie in Quebec. Last year, Parliamentary Budget Officer Yves Giroux produced a report warning the cost of the two new ships was now estimated at $7.25 billion.
The CCGS Louis S. St-Laurent retires from service in 2030.
The construction of the two icebreakers will be done simultaneously at Seaspan and Davie. “In order to maximize vessel similarities across the two ships, the two yards will be encouraged to establish a strong relationship both between themselves and with firms that are engaged in the ship design phase to help ensure commonality,” parliamentarians were told by the coast guard in its response to questions. Such co-operation could prevent the project from slipping behind schedule, it added.
