The Canadian government is currently evaluating international bids to replace its aging fleet of Victoria-class submarines, a procurement project estimated to cost upwards of $60 billion CAD. While no final decision was announced this Monday, the Department of National Defence is reviewing proposals from several global shipbuilders, including Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean and HD Hyundai Heavy Industries, to acquire up to 12 new conventional-powered submarines.
Why Canada Needs a New Submarine Fleet
The current Victoria-class submarines, which Canada purchased secondhand from the United Kingdom in the late 1990s, are nearing the end of their operational lifespan. According to the Department of National Defence, the government officially launched a formal process in July 2024 to explore the acquisition of a new fleet.
These vessels are essential for maintaining Canada’s maritime sovereignty, particularly in the Arctic, where melting ice and increased international interest in shipping routes have heightened security requirements. The government requires a fleet capable of operating under ice, a feature that significantly narrows the list of qualified international partners.
Who Are the Leading Bidders?
Several nations have expressed interest in the Canadian Patrol Submarine Project (CPSP), with German and South Korean firms emerging as the most prominent contenders.
- ThyssenKrupp Marine Systems (Germany): Known for its Type 212CD submarine, the German firm has positioned itself as a strong candidate by emphasizing its long-standing relationship with NATO allies and its experience in building submarines optimized for shallow and littoral waters.
- Hanwha Ocean and HD Hyundai Heavy Industries (South Korea): The South Korean shipbuilders have aggressively entered the market, offering the KSS-III class submarine. They have highlighted their ability to deliver vessels on tight schedules and at competitive price points, a key factor for the Canadian government as it balances budget constraints with military readiness.
Other potential contenders include Saab Kockums from Sweden, Naval Group from France, and Mitsubishi Heavy Industries from Japan, all of which have been engaged in preliminary discussions with Canadian officials.
How the Procurement Process Works
The Canadian government is utilizing an open, competitive process to ensure the best value for taxpayers. The project is governed by the National Shipbuilding Strategy, which aims to revitalize the domestic shipbuilding industry while meeting the immediate needs of the Royal Canadian Navy.
According to a Public Services and Procurement Canada briefing, the process involves rigorous testing of technical specifications, industrial benefits for Canadian companies, and long-term maintenance agreements. The government has not set a definitive date for the final contract award, noting that the focus remains on ensuring the chosen platform can meet the unique environmental challenges of Canadian waters for the next several decades.
What Happens Next?
The next phase of the project involves the government issuing a formal Request for Information (RFI) to potential suppliers to refine technical requirements. Industry analysts expect the selection process to be lengthy, as the government must balance the high cost of acquisition with the need for domestic industrial participation.
Once a partner is selected, the construction process will involve significant collaboration with Canadian shipyards to ensure that the maintenance and repair of the fleet can be handled domestically. For the Royal Canadian Navy, this acquisition represents the largest procurement project in its history, marking a shift toward a more robust, modern underwater defense capability.
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