The Government of Canada has officially awarded a contract to Irving Shipbuilding Inc. (ISI) for the construction of the new River-class destroyers (RCD) for the Royal Canadian Navy (RCN). This major step forward, announced by National Defence Minister Bill Blair, Public Services and Procurement Minister Jean-Yves Duclos, and Veterans Affairs Minister Darren Fisher, marks a significant milestone in Canada’s maritime defence strategy.
“By investing in our own industry, Canadian workers are helping to build the fleet of the future, equipping the Navy and our members in uniform modern and versatile ships they need for Canada’s important contributions to peace and security at home, and abroad. This work will create more than 5,000 jobs in Halifax and across Canada, supporting local economies from coast to coast to coast,” said the Honourable Bill Blair, Minister of National Defence.
As part of the country’s latest defence initiative, Our North, Strong and Free (ONSAF), Canada is ensuring that the RCN is equipped with cutting-edge vessels to support both current and future missions. These warships are designed to deliver powerful combat capabilities at sea while also playing crucial roles in joint-force operations on land. Their versatility extends to operations such as counter-piracy, counter-terrorism, intelligence gathering, surveillance, interdiction, humanitarian aid, search and rescue, and enforcing national sovereignty.
“This year marks the 15th anniversary of the National Shipbuilding Strategy, and we are proud to celebrate this significant milestone in delivering Canada’s next-generation warship. By awarding the implementation contract to build the first batch of River-class destroyers, our government is making a long-term investment to ensure members of the Royal Canadian Navy have the equipment they need to defend and protect our country, while creating good-paying jobs and generating economic growth across Canada,” expressed the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant.
The introduction of these advanced ships strengthens Canada’s ability to fulfill its defence and security commitments. The RCD fleet will collaborate with organizations like the North American Aerospace Defence Command (NORAD), Five Eyes allies, NATO, coalition forces, and various domestic government agencies.
“Like it is for Canadians across this country, Canada’s rich naval history is a point of pride for this government. Today’s contract award with Irving Shipbuilding Inc. is a true demonstration of our government’s commitment to supporting our domestic shipbuilding industry and to ensuring the Royal Canadian Navy has the modern, world-class capabilities needed to protect our sovereignty, safeguard our waters and defend our interests on the global stage. We are investing in Canada and for Canada, and the River-class destroyer project will strengthen the country’s marine sector and help grow our economy for years to come,” conveyed the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.
With an initial budget of $8 billion (including taxes) to support the first six years of construction, the contract covers the building of three initial ships. Additionally, the funds will go toward essential training, spare parts, and maintenance resources required for operational readiness.
The RCD Initiative stands as the most ambitious and intricate shipbuilding project undertaken by Canada since World War II. At its core, the initiative underscores the government’s objective to rejuvenate the national marine industry, reinforce Canada’s sovereign shipbuilding capabilities, and cultivate a highly skilled workforce through the National Shipbuilding Strategy (NSS).
“Nova Scotians know how to build ships, and our skilled shipbuilders are gearing up to build the River-class Destroyers for our Royal Canadian Navy. This generational investment in our future fleet will create good jobs at the shipyard and launch a new wave of opportunities in the maritime defence sector—growing our economy. Every shipbuilder and worker on this project will take pride in knowing their craftsmanship directly supports the brave women and men of the Royal Canadian Navy as they serve at home and abroad,” said the Honourable Darren Fisher, Minister of Veterans Affairs and Associate Minister of National Defence.
Following a thorough evaluation, the cost to construct and commission the first three destroyers has been set at $22.2 billion (excluding taxes). This figure includes ISI’s contract expenses, as well as the costs associated with acquiring necessary equipment, systems, and ammunition to ensure the ships’ full operational capacity.
“Today’s announcement is a major step forward in delivering the first three River-class Destroyers – these impressive ships will offer an incredible capacity to the Royal Canadian Navy and Canada, ensuring that we can defend our waters against any adversary and deliver frontline combat power anywhere in the world,” expressed Vice-Admiral Angus Topshee, Commander, Royal Canadian Navy.
Beyond bolstering national security, the RCD Initiative is expected to drive considerable economic growth. Projections indicate that the implementation contract will generate an annual contribution of $719.3 million to Canada’s GDP and sustain 5,250 jobs per year from 2025 to 2039. Additionally, related consumer spending is anticipated to inject $191 million annually into the economy, creating 1,545 additional jobs during the same timeframe. The initiative is particularly beneficial to Atlantic Canada, offering increased employment opportunities and economic stability to the region.
“Today is a major milestone for Irving Shipbuilding and for Canada. This contract validates more than a decade of hard work by industry and government and provides stability for the hard-working men and women who design, build and maintain Canada’s surface fleet,” said Dirk Lesko, President, Irving Shipbuilding Inc.
Aligned with the principles of ONSAF, Canada remains committed to fostering a strong, collaborative relationship with the national defence sector. By investing in domestic shipbuilding and equipping the RCN with a state-of-the-art fleet, the government ensures that the Navy remains prepared to carry out its operations for decades to come.
Canada's Defence Strategy Moves Forward with River-Class Destroyers Contract
