ThyssenKrupp Marine Systems (TKMS), the German shipbuilder vying to provide Canada's next fleet of submarines, is promising a significant economic windfall for the country should their bid be successful. Information viewed by CBC News indicates that the combined investments by the German government and TKMS in projects across Canada could deliver an $86 billion boost to Canada's gross domestic product and create over 654,695 job years of employment over the lifetime of the deal.
The Canadian Patrol Submarine Project (CPSP) seeks to replace the Royal Canadian Navy's aging Victoria-class submarines with up to 12 new, conventionally powered submarines capable of operating in the Atlantic, Pacific, and Arctic oceans. The current Victoria-class submarines are scheduled to be decommissioned in the mid-to-late 2030s. The federal government has shortlisted two suppliers: TKMS and South Korea's Hanwha Ocean.
The German Defence Minister, Boris Pistorius, referenced these potential economic benefits at the recent CANSEC defence trade show. The proposal includes the construction of two maintenance facilities, one on each coast, modeled after an existing center in Norway. The South Korean company, Hanwha Ocean, has also proposed building military vehicles in Canada in partnership with the domestic auto sector, including mobile howitzers, rocket launch systems, and infantry vehicles, contingent on their successful bid. A decision is expected in June.
The Canadian government anticipates awarding a contract by 2028, with the first new submarine to be delivered no later than 2035. Rear Adm. David Patchell, commander of Maritime Forces Pacific and Joint Task Force Pacific, emphasized the importance of the submarine program, stating, "We are about to purchase brand new submarines. We're building new destroyers, new supply ships …We are building the navy Canada needs to defend all three of our oceans".
