The Race for Canada's Next Submarine Fleet

The Race for Canada's Next Submarine Fleet

The federal government is evaluating bids from two companies to supply the Royal Canadian Navy with approximately 12 submarines. South Korea's Hanwha Oceans and Germany's TKMS remain the only qualified bidders in a competition expected to be worth tens of billions of dollars. Officials have described the process as unusually rapid compared with past naval procurements.

Statements from Key Officials and Industry Leaders

Secretary of State Stephen Fuhr indicated that a winner could be selected by the end of June. TKMS chief executive Oliver Burkhard noted during the CANSEC defence expo in Ottawa that the pace resembles "light speed" for such a large project. Hanwha Defence Canada chief executive Glenn Copeland highlighted his company's focus on establishing a stronger presence in North America.

Approaches Taken by the Competing Firms

TKMS has emphasized interoperability with existing NATO submarine operations involving Germany and Norway. Burkhard described the company's offering as a "proven, not a promised, approach." Hanwha Oceans, which has not previously exported submarines, conducted a broad advertising campaign across Ottawa and national media featuring former broadcaster Peter Mansbridge.

Economic Promises Outlined in the Bids

Hanwha cited an analysis by KPMG that valued its proposal at $60 billion in economic opportunities, along with support for 22,500 full-time jobs annually and $94 billion in gross domestic product. TKMS separately released figures projecting $160 billion in economic activity, $86 billion in GDP and more than 650,000 jobs over the life of the project. Both companies have tied their offers to domestic industrial benefits.

Delivery Schedules and the Existing Victoria-Class Fleet

Canada's four Victoria-class submarines are projected to leave service by 2035, with only one currently operational. Hanwha has proposed delivering four submarines by 2034 followed by one per year. TKMS adjusted its timeline during the CANSEC event to deliver four submarines by 2036, which would require adjustments to orders from Germany and Norway. Germany's Defence Minister Boris Pistorius spoke in support of TKMS alongside Defence Minister David McGuinty.

Broader Context for Canadian Defence Procurement

Typical major naval shipbuilding projects have historically taken more than five years. The current effort reflects government priorities around both military capability and economic returns. Hanwha recently hosted Canadian naval personnel aboard one of its submarines in Victoria, British Columbia, as part of its outreach.