Canada, for one, is in urgent need of replacing its aging fleet of Victoria-class submarines. These submarines are due to retire by 2035. The urgency of this situation has prompted the Canadian government to narrow down its options to two finalists: Hanwha of South Korea and ThyssenKrupp Marine Systems of Germany. This decision is an important step in expanding and rejuvenating Canada’s naval fleet. It’s one small step in a much larger initiative to tackle the rising tide of maritime threats.
At first, the Canadian government only shortlisted five companies for the contract to provide new submarines. The competition was later narrowed to just Hanwha and ThyssenKrupp Marine Systems. Vice Admiral Craig Topshee, the navy’s commander, said that all companies are competitive. He says, making the case for what he thinks is the simplest solution, all 12 submarines should be operated from a single supplier. This approach would provide needed standardization in both parts and weapons systems, which would add all important operational efficiencies.
Defence experts warn that splitting the contract between two competitors would create a host of complications for the navy. They claim that splitting the contract could damage future domestic industrial benefits. Awarding one big contract would be much better. The anxieties underscore the necessity if not the urgency of a more nimble procurement process at a time when Canada must push ahead with plans to strengthen its underwater punch.
Topshee did not make a choice between Hanwha and ThyssenKrupp Marine Systems. Rather, he explained that the key thing was to make a quick decision. The selection will then be made final by the federal government. They will need to take into serious account the advantages of all possible alternatives, while balancing national security requirements with industrial considerations.
And just recently, Canada moved ahead with plans to modernize their submarine fleet. The choice between Hanwha and ThyssenKrupp Marine Systems is an important one for the future of the Canadian navy. The government’s procurement decision will be very consequential in determining what the future of naval operations looks like. Increasingly, Canadian defense procurement is providing significant long-term benefits for Canada’s defense industrial base.
