The Canadian government has taken a significant step toward modernizing its naval capabilities by naming South Korea’s Hanwha Ocean and Germany’s Thyssenkrupp Marine Systems as „qualified suppliers” for the Canadian Patrol Submarine Project (CPSP). This multi-billion dollar initiative aims to replace the Royal Canadian Navy’s aging Victoria-class submarines with up to a dozen state-of-the-art vessels.
Replacing an Aging Fleet
The existing Victoria-class submarines, acquired from the United Kingdom in 1998, are expected to remain in service until the mid-to-late 2030s. The new submarines, with a reported price tag of $60 billion CAD ($43.5 billion USD), will ensure a seamless transition and prevent any capability gaps in Canada’s underwater defense. The first new submarine is anticipated to be delivered by 2035.
Next Steps in the Procurement Process
„As part of the next steps, Canada will conduct in-depth engagements with the 2 qualified suppliers to continue to advance the procurement process,” according to a government statement.
Hanwha’s Ambitious Proposal
Hanwha Ocean expressed its enthusiasm about being selected as a qualified supplier, touting its KSS-III Canadian Patrol Submarine as a compelling solution. The company claims it can deliver four KSS-III CPS to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria class fleet will result in estimated savings of approximately $1 billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines can be delivered to Canada by 2043.
Competition and Future Opportunities
Numerous shipbuilders from across Europe and Asia had publicly expressed interest in the project. Saab, a Swedish company that offered its C71 ‘Expeditionary’ submarine, acknowledged the decision and reaffirmed its commitment to Canada, stating, „Saab’s submarine offer remains, as we stand behind its value for the Royal Canadian Navy and Canadian industry, but we ultimately respect their decision. Canada has long been a close partner and ally, and we will continue to deliver for the Canadian Armed Forces on our ongoing programs and look to future opportunities for close cooperation with Canada across the entire defence sector.”
Strengthening Sovereignty and Partnerships
“Today, Canada takes another step toward acquiring next-generation submarines for the Royal Canadian Navy. This is about defending our sovereignty, protecting Canadians, and ensuring our armed forces have the tools they need. Through the Canadian Patrol Submarine Project, we are strengthening alliances, diversifying defence partnerships, and creating opportunities for Canadian industry,” David McGuinty, minister of national defence said in a statement.
