Canada signs new partnership agreement with United States and Finland to produce Arctic and polar icebreakers

From: Public Services and Procurement Canada

News release

November 13, 2024 - Washington D.C. - Public Services and Procurement Canada

In an increasingly complex world, the security threats faced by Canada are rapidly changing, none more so than in the Arctic. The warming Arctic is becoming increasingly navigable and opening a new arena of competition that our adversaries are eager to exploit. In response to these challenges, Canada must assert its Arctic sovereignty and work alongside allies to protect its interests in the North.

Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, joined by Alejandro Mayorkas, United States (U.S.) Secretary of Homeland Security, and Wille Rydman, Finland’s Minister of Economic Affairs, signed a joint Memorandum of Understanding to establish the Icebreaker Collaboration Effort (ICE Pact).

This landmark partnership will enhance industry collaboration among our countries, coordinate expertise and strengthen our abilities to produce best-in-class polar vessels, including icebreakers. The ICE Pact will allow new equipment and capabilities to be produced more quickly. This includes setting up a system to rapidly exchange information on these icebreakers, keeping construction cost-and-time efficient. Through the ICE Pact, Canada, the U.S. and Finland will also work together on a joint workforce-development program to ensure that the workers building these vessels have the skills and training required. By jointly developing and producing world-class Arctic and polar icebreakers, we are laying the foundation for a competitive shipbuilding industry.

This increased cooperation will create thousands of good middle-class jobs, grow our economy, empower scientific research, and help uphold security and sovereignty in the Arctic. This partnership will be the groundwork for like-minded nations to increase their polar capabilities in the Arctic and Antarctic regions for generations to come. The ICE Pact is a win for our workers, our shipbuilding industry and our security, and it is a testament to the strength of allied cooperation in addressing shared challenges. Canadian shipyards will continue building polar icebreakers and other Arctic and polar capabilities under the National Shipbuilding Strategy (NSS).

The Arctic and North are integral parts of our country, home to 150,000 Canadians and generations of Indigenous communities. With transformative agreements like the ICE Pact, and through Our North, Strong and Free, Canada is ramping up investments in defence and security. Our investments, which will help us reach the North Atlantic Treaty Organization defence pledge, include $218 million for new Northern Operational Support Hubs in the Arctic, $18.4 billion to acquire a more modern tactical helicopter capability, $307 million for airborne early warning aircraft to detect airborne threats sooner, and $1.4 billion for specialized maritime sensors to defend Canada from underwater threats on all 3 coasts. We will always work with allies to protect our country, our continent and the rules-based international order.

Quotes

“As Arctic nations, it’s imperative that Canada, Finland and the United States invest in the production of icebreakers to protect our sovereignty in the North. The ICE Pact agreement will strengthen shipbuilding in Canada and will be essential in creating and maintaining good middle-class jobs. By working together, we are supporting national security and climate interests in the Arctic for the collective benefit of all 3 countries.”

The Honourable Jean-Yves Duclos
Minister of Public Services and Procurement and Quebec Lieutenant

“Through this enhanced trilateral partnership between Canada, the U.S. and Finland, our governments are committed to building world-class Arctic and polar icebreakers. This collaboration will drive innovation, share expertise and strengthen Canada’s shipbuilding sector, while ensuring our nations are better prepared to tackle the unique challenges of the Arctic and polar regions.”

The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry

“Today’s signing represents our commitment to working with international Arctic partners on the construction of polar icebreakers. Through increased information sharing and joint learning opportunities, the ICE Pact will help us ensure we’re building the highest-quality polar icebreakers for our future Canadian Coast Guard fleet.”

The Honourable Diane Lebouthillier
Minister of Fisheries, Oceans and the Canadian Coast Guard

“Canada’s Arctic region is warming at 4 times the global average, making the region more accessible to our adversaries who have growing capabilities and regional military ambition. Like-minded nations need to work together to ensure the Arctic and polar regions remain peaceful, cooperative and prosperous. This agreement between Canada, the United States and Finland will increase cooperation between our 3 nations and will support our collective economic, climate and national security priorities in the Arctic.”

The Honourable Bill Blair
Minister of National Defence

Quick facts

  • The Canadian Coast Guard currently has 18 icebreakers of varying sizes and capabilities, making it the second-largest icebreaking fleet in the world.

  • The information and best practices that Canada, the U.S. and Finland gain through the ICE Pact will help inform current and future work on icebreaking capabilities built under the National Shipbuilding Strategy.

  • In May 2021, Canada announced the construction of 2 new polar icebreakers under the NSS at Seaspan’s Vancouver Shipyards Co. Ltd. and Chantier Davie Canada Inc. Both polar icebreakers will have capacity and abilities beyond those of Canada’s current largest icebreaker, the Canadian Coast Guard Ship Louis S. St-Laurent.

  • The construction of the polar icebreakers will generate approximately 300 jobs per vessel at the shipyards and 2,500 jobs across the marine supply chain.

  • The construction of these new ships is in addition to the $17.49 billion in contracts already awarded to shipyards large and small across Canada under the NSS, which have resulted in the revitalization of Canada’s shipbuilding industry and the creation of thousands of jobs across Canada.

  • In addition to the 2 polar icebreakers, Canada is building 6 Arctic and offshore patrol ships (AOPS) for the Royal Canadian Navy, 2 AOPS for the Canadian Coast Guard, 6 program icebreakers and up to 16 multi-purpose vessels, all of which have varying icebreaking capabilities.

  • The NSS is a long-term, multi-billion-dollar program focused on renewing the Canadian Coast Guard and Royal Canadian Navy fleets to ensure that they have the modern ships they need to fulfill their missions.

  • Through contracts awarded under the NSS between 2012 and 2023, Canada’s marine industry is estimated to contribute close to $30 billion ($2.3 billion annually) to gross domestic product and create or maintain more than 20,400 jobs annually to the Canadian economy over the 2012 to 2024 period.

  • Through Our North, Strong and Free, Canada is making a focused series of investments to better protect the Arctic and North, and get defence spending up to 2%, including:

    • $218 million over 20 years for Northern Operational Support Hubs to support a greater year-round presence across the Arctic and North, and invest in multi-use infrastructure that also meets the needs of territories, Indigenous Peoples and northern communities where feasible
    • $18.4 billion over 20 years to acquire a more modern, mobile and effective tactical helicopter capability that will provide the Canadian Armed Forces (CAF) with the speed and airlift capacity to assert Canada’s sovereignty and respond to natural disasters and emergencies throughout the country
    • $307 million over 20 years for airborne early warning aircraft that will vastly improve Canada’s ability to detect, track and prioritize airborne threats sooner, ensuring a faster, better coordinated response with the U.S. when required
    • $1.4 billion over 20 years to acquire specialized maritime sensors to conduct ocean surveillance, which will be used to monitor Canada’s maritime approaches, including in the Arctic and North, and will be a critical component of the CAFs’ ability to defend Canada from a growing range and sophistication of underwater threats, including vessel-launched missiles, underwater systems, ships and submarines, on all 3 coasts
    • $222 million over 20 years to build a new satellite ground station in the Arctic, which will improve our ability to detect, deter and respond to malign activities and to communicate those threats quickly with our most trusted partners

Associated links

Contacts

Guillaume Bertrand
Director of Communications
Office of the Honourable Jean-Yves Duclos
guillaume.bertrand@tpsgc-pwgsc.gc.ca

Media Relations
Public Services and Procurement Canada
819-420-5501
media@pwgsc-tpsgc.gc.ca

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