Feds reiterate $11-billion B.C. shipbuilding commitment

Federal Minister of Public Works Diane Finley was on hand at Seaspan's North Vancouver shipyards Monday to ceremonially cut the steel for a small contract to build parts for a government vessel, a preamble to $11 billion in contracts inked as part of the National Shipbuilding Procurement Strategy (NSPS). The feds...

Workers at the Seaspan shipyard.
Minister Diane Finley operates a steel-cutting machine, the

Diane Finley operates the laser steel-cutter.
Minister Diane Finley operates a steel-cutting machine, the

The cutter made a steel cutout of a boat.
Minister Diane Finley operates a steel-cutting machine, the

A worker lifts a steel cutout of a boat from a large sheet of steel.
Minister Diane Finley operates a steel-cutting machine, the

A laser steel cutter in operation.
Minister Diane Finley operates a steel-cutting machine, the

From left to right: Jonathan Whitworth, CEO of Seapsan ULC; Diane Finley, federal minister of public works and government services; Andrew Saxton, Conservative MP for North Vancouver; Brian Carter, president of Seaspan Shipyards
Minister Diane Finley operates a steel-cutting machine, the

The crane was installed in May of 2014.
Minister Diane Finley operates a steel-cutting machine, the

Diane Finley speaks to workers at the North Vancouver shipyard.
Minister Diane Finley operates a steel-cutting machine, the

A flag hangs in one of the newly renovated buildings.
Minister Diane Finley operates a steel-cutting machine, the

A construction hanger for future shipbuilding projects.
Minister Diane Finley operates a steel-cutting machine, the

Another hangar.
Minister Diane Finley operates a steel-cutting machine, the

A mammoth blue crane hangs over the entire facility.
Minister Diane Finley operates a steel-cutting machine, the

The crane, the tallest structure in North Vancouver, can be seen from downtown.
Minister Diane Finley operates a steel-cutting machine, the

Trailers at the Seaspan Shipyard.
Minister Diane Finley operates a steel-cutting machine, the

$11 billion in contracts with the federal government are still on, says Seaspan president

Federal Minister of Public Works Diane Finley was on hand at Seaspan’s North Vancouver shipyards Monday to ceremonially cut the steel for a small contract to build parts for a government vessel, a preamble to $11 billion in contracts inked as part of the National Shipbuilding Procurement Strategy (NSPS).

The feds currently have 17 vessels on order from Seaspan, and three years after their first order of non-combat ships as part of a national ship procurement plan, construction is yet to start.

That plan entered a period of mild uncertainty in February when the federal government cut $3 billion earmarked for imminent procurements as part of its 2014 budget. But company officials said that all contracts signed with Seaspan are still on.

“Some have reported that the NSPS is in trouble, over-budget, or on the rocks,” said Jonathan Whitworth, CEO of Seapsan ULC, addressing reports last week that the federal government was reconsidering its commitments as part of a $35-billion shipbuilding program. “But the ship is headed in the right direction,” he said.

As part of Monday’s event, the the feds awarded a comparatively small $5-million contract to Seaspan for parts for a Departments of Fisheries and Oceans Vessel. That contract will help the yard test out its operations before full production on the $11 billion in contracts starts in Spring 2015, said Finley.

Last October, Finley announced that the government had inked a contract with Seaspan to build an additional 10 Coast Guard vessels, a $3.3-billion commitment, as part of its shipbuilding procurement strategy. Pre-construction was already well underway at Seaspan’s North Vancouver yard, as the company had ramped up preparations for its first set of non-combat vessel contracts, signed in 2011.

Seaspan, for its part, will soon complete those renovations after two years at a cost of approximately $200 million. That upgrade has geared up the yard to meet the demands of its NSPS contracts.

Click through the slideshow above for more images from Monday’s event.