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Ocean Industries to build four tugs for Royal Canadian Navy

Apr 30, 2019 10:04 AM

The new vessels will replace five Glen-class tugs and two Fire-class rescue boats

The following is text of a news release from Public Services and Procurement Canada:

(GATINEAU, Quebec) — The National Shipbuilding Strategy continues to deliver on its commitment to equip the Royal Canadian Navy with the ships needed to serve Canadians, while bringing jobs and prosperity to communities across the country and revitalizing our marine industry.

On Monday, Diane Lebouthillier, minister of national revenue and member of Parliament for Gaspésie–Les Îles-de-la-Madeleine, announced that Public Services and Procurement Canada, on behalf of National Defense, has awarded a contract of $102 million (including taxes) to Ocean Industries Inc., from Isle‑aux-Coudres, Quebec, for the acquisition of four tugboats.

These new tugs will provide towing, firefighting and other critical support services to both the Atlantic and Pacific maritime forces. They will replace the Royal Canadian Navy's five civilian-crewed Glen-class large tugs and two Fire-class rescue boats.

This contract will help sustain or create up to 140 jobs for Ocean Industries Inc. and its subcontractors.

"The government of Canada is committed to equipping the women and men of the Royal Canadian Navy with the ships they need to carry out their important work. Today's announcement is yet another example of how the National Shipbuilding Strategy is supporting jobs and prosperity in communities across Canada, including in Quebec," Lebouthillier said.

"Large tugs are an essential part of the auxiliary fleet that supports the Royal Canadian Navy. They help berth our warships as they arrive from operations or as they leave to support our allies. The government of Canada is providing the Royal Canadian Navy with the equipment they need to fulfill the missions we ask of them. Furthermore, this defense contract to build four large tugs in Canada will contribute to growing our economy and strengthening our middle class," said Harjit S. Sajjan, minister of national defense.

"We're very pleased to have obtained this contact to complete this project at our shipyard in Isle-aux-Coudres in the Charlevoix region. Though we've built a lot of ships, this is the most important contract ever taken on by Ocean Industries Inc. Today, it's our advanced expertise as a builder and naval tug operator that is recognized by the federal government. We worked hard to present the federal government with a competitive offer, and we're pleased that our efforts are materializing in these initial significant economic results for our company related to the National Shipbuilding Strategy," said Jacques Tanguay, president and CEO of Ocean Group.

Two of the tugs will go to Canadian Forces Base (CFB) Esquimalt in British Columbia. The other two will be delivered to CFB Halifax in Nova Scotia. The first two tugs are scheduled to be delivered in 2021. The last two tugs will be delivered in 2023.

Canada has applied a voluntary set-aside for the Aboriginal participation component at 1 percent of the contract value.

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