|
|
Shipbuilding Update
ONE YEAR LATER...
It is a year since Irving Shipbuilding earned the right to negotiate the contracts to build the new combat vessel fleet for the Royal Canadian Navy. It was a great day for everyone on the Irving Shipbuilding team, in Nova Scotia, throughout the region, and indeed across Canada.
We believe it’s important to keep you up-to-date on both our progress and our current activities. This update is to provide an overview of where we are today – one year into an exciting and promising 30-year process.
We are as eager to commence the building of ships for Canada’s Navy as everyone is to see the economic impacts. Our commitment – through a timely collaborative process with our customer, the federal government – is to ensure:
-
Best value to Canada
-
Quality ships that meet the needs of the Navy
-
A smooth transition from current work to the next generation of Navy combat ships
-
A clear benefit for Nova Scotia and Canada in terms of economic impact
Currently, we’re working diligently with our federal government partners to finalize first the Design (Definition) and then the Build (Implementation) contracts for the first set of vessels, the Arctic Offshore Patrol Ships (AOPS).
Here is what the timetable looks like today and we remain hopeful that we may be able to expedite the steel cutting of the first Arctic Offshore Patrol vessel. Until we begin work on these ships in 2015, the fact is we are still in the boom and bust cycle inherent to the shipbuilding industry. The steady, multi-year, multi-ship work that the National Shipbuilding Procurement Process was designed to address will change this cycle once the next generation of ships begins.
|
Major Milestone *AOPS |
DND Published Date |
|
NSPS Selection of Shipyards |
October 2011 ✔ |
|
Signing of Umbrella Agreement |
February 2012 ✔ |
Signing of AOPS Ancillary Contract
(initial planning) |
June 27, 2012 ✔ |
|
Signing of AOPS Design Contract |
2013 |
|
Finalize Engineering & Planning |
2015 |
|
Signing of AOPS Build Contract |
2015 |
|
Cut Steel on First AOPS |
2015 |
|
Delivery of First AOPS |
2018 |
|
AOPS Program Complete |
2024 |
|
* Dates published by DND as of May 9, 2012 |
A continuous flow of work that sustains jobs and maintains a vibrant centre of excellence in the community remains our focus one year later. We are doing everything we can to advance the timetables and begin building vessels for Canada as quickly as possible.
As an organization, Irving Shipbuilding is committed to generating opportunities for our communities; opportunities including jobs, business growth, increased consumer spending and economic spin-offs.
Please read on and learn more about where we are today, and how we are moving forward. We’re planning to issue updates on a regular basis. We hope you find them informative and helpful.
Thanks for reading,
The Team at Irving Shipbuilding
|
|
NSPS | Pre-Planning Contract Signed – July 10, 2012
A Step Closer to Cutting Steel on AOPS
Minister Peter MacKay was at Halifax Shipyard to announce the signing of the Ancillary Contract, the pre-planning agreement to begin contract work in preparation for the Engineering (Design / Definition) and Build (Implementation) Contracts for the first set of NSPS vessels, the Arctic Offshore Patrol Ships. This $9M contract has put a team of 30 to work on reviewing Canada’s AOPS design, developing an execution strategy, and doing a detailed cost-estimate on the Engineering phase of the program.
A small but important step forward.
NEXT STEP: Have the Engineering (Design) phase of work start in early 2013. |
|
Halifax Shipyard | Busy Today
Building and Repairing Ships for Canada
Halifax Shipyard is currently working on some of Canada’s most significant shipbuilding programs, including the Frigate Life Extension (FELEX) Program to conduct mid-life refits on seven of the Navy’s patrol frigates and constructing nine new Hero Class Mid-Shore Patrol Vessels for the Canadian Coast Guard.
The First of Class Hero Class Mid-Shore Patrol Vessel, CCGS Private Robertson V.C., was delivered to Canada on July 31, 2012. Six of the remaining eight Mid-Shore Patrol Vessels are currently underway in the yard. The Second of Class ship, CCGS Caporal Kaeble V.C., was launched on September 22 , 2012, and we are now working toward her delivery by the end of the year.
Building of the Mid-Shore Patrol Vessels is forecasted to continue through until 2014.
HMCS Montreal arrived in Halifax Shipyard’s graving dock on July 4, 2012, where she’s begun her Mid-Life Refit. HMCS Halifax was transitioned back to Canada on June 15, 2012, and HMCS Fredericton remains at the yard in the middle of her Mid-Life Refit. The next ship due in is HMCS Charlottetown, slated to arrive in April 2013. The overall FELEX program is scheduled to be complete in 2017.
|
|
Vibrant Workforce | 1,400 Will Grow in Future
Multi-year, Multi-decade Programs Key to Leveling Out Boom and Bust
Irving Shipbuilding currently has a vibrant workforce of 1,438 employees with 1,150 at Halifax Shipyard, 69 at Shelburne Ship Repair and 219 at our Fleetway and Oceanic engineering operations. Most are engaged in current projects, with a group of 30 employees dedicated to pre-planning work for the coming contracts under the National Shipbuilding Procurement Strategy (NSPS). Our workforce is adjusted weekly, to match the work requirements in the yards. This is the nature of our industry, and illustrates the importance of programs like the NSPS, which will, once fully underway, provide steady work over a multi-year, multi-decade timeframe. This ongoing ebb and flow in our workforce will continue until we are well into that 30-year stream of work. We will continue to do everything possible to ensure we keep as many of our employees busy as we possibly can, with commercial ship repair and other projects.
|
Location |
Current Projects |
Hourly Workers |
Shelburne
Ship Repair |
HMCS Shawinigan, DND
YRG-62 Water Barge, DND |
22
30 |
|
Halifax Shipyard |
FELEX (Frigate Life Extension Program), DND
Mid-Shore Patrol Vessels, Coast Guard |
575
250 |
That’s our goal – to have as many people working at Irving Shipbuilding as we can!
 |
That our workforce will grow is a fact. The timing of our workforce growth will depend on when contracts are signed and production begins. 2015 is the DND published date for construction to begin on the first set of vessels, the Arctic Offshore Patrol Ships (AOPS). We are working diligently to advance this timetable as we continue our contract negotiations with our customer, the Government of Canada.
As the largest employer of apprentices in Nova Scotia, these up-and-coming trade professionals continue to be an important part of our workforce. Last year we donated 25 state-of-the-art welding stations and supplies worth $112,500 to be used by students in the new metal fabrication lab at Nova Scotia Community College (NSCC) Akerley Campus.
Irving Shipbuilding and NSCC Sign MOU for Shipbuilding Centre of Excellence
On October 19, 2012, a Memorandum of Understanding (MOU) was signed by Irving Shipbuilding and NSCC commiting to develop a Shipbuilding Centre of Excellence. The Centre of Excellence project has a mandate to engage groups that are underrepresented in the sector and increase awareness of career options in the industry. To support this initiative, Irving Shipbuilding will contribute $250,000 during each year of the Build Phase of the NSPS program. This was part of the value proposition portion of the bid and integral to the win to negotiate the contracts for the next generation fleet of combat ships. More information can be found by clicking here.
|
NSPS – Beyond Boom & Bust
The boom and bust cycle has been a reality at Halifax Shipyard for many years. When 12 Marine Coastal Defence Vessels were built for the Navy at Halifax Shipyard in the 1990s, our workforce peaked at more than 1,100. Then in the spring of 2001, the shipyard’s workforce sat at only 150 with just one repair job finishing up in the yard – in fact, the yard was turned into a film set for the making of K19: The Widowmaker. In 2009, we saw one of the biggest surges in the workforce in decades, with more than 1,200 employed on a variety of shipbuilding and repair projects.
The constant ups and downs mean it’s difficult to maintain skilled, experienced employees. The NSPS will change this. The importance of steady, multi-year, multi-decade projects in providing continuity and career opportunity in our industry can’t be underestimated. The start of production on the AOPS program in 2015, and the Canadian Surface Combatant (CSC) program to follow, begins a long-range outlook of healthy workforce numbers with good growth potential.
|
|
Supplier Interest Strong | Ready for When Procurement Begins
1,500 Businesses Registered and Growing – Have You Signed Up?
We’ve heard from many businesses and organizations interested in becoming a supplier or benefiting from the shipbuilding opportunities. It’s still early yet, however we are beginning to progress with our supply chain. We’ve participated in 12+ supplier information sessions hosted by the Atlantic Canada Opportunities Agency (ACOA), and we have more than 1,500 companies registered on our online supplier registry. The Supply Chain Department is doing some work to prepare for the Engineering (Definition) contract, and may soon be in touch with registered potential suppliers looking for general information regarding products and services provided. In addition, we will soon be reaching out to suppliers in select areas that will help to advance the work underway to prepare for the upcoming Engineering contract for AOPS. If you are interested in becoming a supplier to Irving Shipbuilding, make sure to register today.
|
Supplier Profile:
Hawboldt Industries | Supplying Irving Shipbuilding for 20+ Years
One of 1,000+ NS Suppliers To Have Benefited from Canadian Shipbuilding Projects to Date
Located: Chester, NS
Years in Business: 106
# Employees: 40
Supplier to Irving Shipbuilding since: 1992
Hawboldt Industries provides integrated design and manufacturing services to the marine industry. From trawling nets to oceanographic survey equipment, Hawboldt supplies specialized winch systems, reels, windlasses, capstans and is also a leading manufacturer of propellers, providing complete repairs and onsite service. Hawboldt has provided services for a number of programs at Irving Shipbuilding, including the Maritime Coastal Defence Vessels for Canada’s Navy, the company’s own Graving Dock upgrade, and the current Coast Guard Mid-Shore Patrol Vessels, as well as many commercial ship repair projects.
|
9,000 Sq. Ft. Facility Added to Yard
At the end of August, Irving Shipbuilding added a 9,000 square foot facility to Halifax Shipyard. The space is being used for the Health, Safety & Environment Department and additional locker and lunch room space for trades employees. “With the new facility, our entire HSE team is within close proximity to each other, allowing for better communication flow. And with this new space we have a dedicated training room that can accommodate up to 30 people for health and safety training,” said Jesse Risser, Manager Health, Safety & Environment.
|
|
Site Engineering Contract Awarded
Hatch Mott MacDonald Engineering has been awarded the site engineering contract. They have been in Nova Scotia for over 40 years. The company has a long history of marine industry construction, as the designers of the buildings and infrastructure for the Saint John Shipyard, as well as the management and design of marine projects at Saint John Shipyard, Fairview Cove Container Terminal, DND Halifax, DND Esquimalt and Eastern Passage Autoport.
“Hatch Mott MacDonald has a long standing relationship with Irving Shipbuilding, dating back to the 1980s in Saint John, New Brunswick. Today, Hatch Mott MacDonald is very pleased and excited to be Irving Shipbuilding Inc.’s Engineer of Choice for the redevelopment of Halifax Shipyard and we look forward to growing our team here in the Province,” said Kevin Skebo, Project Manager for Hatch Mott MacDonald in Halifax. “Our operations are committed to working with Irving Shipbuilding to construct a world-class shipbuilding facility that will ensure quality shipbuilding and repair for generations to come.”
Hatch Mott MacDonald has 40 employees in Nova Scotia today, primarily engineers and specialists. With this contract, the company expects to grow to about 65 engineers and specialists to complete the NSPS yard modernization plans.
Irving Shipbuilding’s focus is to be underway with over $300M in site investments by the Spring of 2013. The estimate on both the engineering and construction work combined is 2.3 million person hours, which translates to approximately $73M in wages here in Nova Scotia.
We look forward to sharing more detailed plans in early 2013 once more of the engineering work has been completed, and will share preliminary estimates on jobs to be created and timeframes at that time.
|
Shelburne Ship Repair | Benefiting from $16M Investment
70 Employed, New and Repeat Customers Lining Up
Shelburne Ship Repair is benefiting from a sizeable investment made in 2011 by both the Province of Nova Scotia ($8M) and Irving Shipbuilding ($8M) to construct a new 4,400 tonne marine railway and upgrade the yard’s facilities. And the yard’s been quite full since our official opening in September 2011. This summer, the Shelburne team won the contract to repair HMCS Shawinigan, one of the Kingston-marine class coastal defence vessels. Built at Halifax Shipyard, and in service since 1997, HMCS Shawinigan arrived at the beginning of August and is scheduled to be there until November 2012.
We’re also pleased that Shelburne Ship Repair won a contract for the YRG-62 Water Barge owned by Department of National Defence. The contract includes steel work, mechanical and dry dock repairs to the vessel and will employ approximately 30 people for the duration of the job. The project is expected to take about three months, and started in early September.
With a skilled workforce and lots of work underway, this shipyard is definitely building a reputation as a Centre of Excellence for Ship Repair on the South Shore of Nova Scotia. Check out this recent industry publication article on page 29.
|
|
Irving Shipbuilding | Growing Nova Scotia’s Economy Today
Positive Industry Impacts Before Future NSPS Programs Arrive
Did you know:
-
Irving Shipbuilding operations boosted Nova Scotia’s real GDP by an estimated $174 million in 2011
-
As a result of Irving Shipbuilding direct and indirect employment, an estimated $113 million was paid in employment income to Nova Scotians in 2011
-
Irving Shipbuilding activities in 2011 generated $84.3 million in consumer spending, in areas such as:
-
$33.3 million – housing
-
$12.6 million – groceries
-
$17.4 million – transportation
-
$5.8 million – recreation
-
$3 million – charitable giving
Read the entire report of the 2011 Economic Impact of our Shipbuilding Operations across Nova Scotia. |
|
|
|
