Listen to this article
Estimated 4 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
The South Korean submarine ROKS Dosan Ahn Chang-ho arrived off British Columbia’s coast on Saturday in a flashy showcase of Hanwha Ocean’s bid to secure Canada’s multibillion-dollar submarine contract.
The vessel is visiting Victoria and will take part in joint anti-submarine exercises with the Royal Canadian Navy.
The newly built 3,000-ton KSS-III submarine made the historic 14,000-kilometre trans-Pacific voyage to demonstrate its long-endurance capabilities to Canadian decision-makers.
Prime Minister Mark Carney’s government is expected to make a decision within weeks on whether to go with the Hanwha Ocean bid or one by German rival TKMS (ThyssenKrupp Marine Systems).
The navy is hoping to acquire 12 boats over the next decade and a half, with an eye to using them not only in the Pacific and Atlantic oceans but also in the Arctic, where they would be required to operate under the ice for extended periods of time.
A South Korean submarine built by Hanwha Ocean is in Victoria for joint anti-submarine exercises with the Royal Canadian Navy after a 14,000-kilometre trans-Pacific voyage. The voyage of ROKS Dosan Ahn Chang-ho aimed to demonstrate its long-endurance capabilities in a bid to secure Canada’s multibillion-dollar submarine contract.
Rear Admiral David Patchell, commander of Maritime Forces Pacific and Joint Task Force Pacific, told reporters in Victoria that he’s thankful to the South Koreans for making the trip to Canada and that he feels “excitement about the Royal Canadian Navy that we are building.”
When asked how badly Canada needs new submarines, Patchell said, “I need them yesterday.”
“We have operated submarines for over 100 years, but we have never truly been a submarine nation. But with 12 modern submarines, Canada will be a submarine nation.”
Since the submarines would be built off-shore, both companies have submitted detailed proposals of what they can do for the Canadian defence industry. They have signed a series of partnership agreements — in some cases with the same firms — in order to demonstrate their willingness to create Canadian jobs.
The initial deadline for submitting proposals was at the beginning of March, but the federal government gave the competitors extra time to refine the economic benefit aspects of their pitches.
Both companies have been told to expect a decision by late June, with contract negotiations to follow.
Rivals duking it out
The competition between the two rivals has been fierce.
The Hanwha Group of companies, which owns the submarine manufacturing shipyard, recently signed a memorandum of understanding with Canada’s Automotive Parts Manufacturers’ Association, promising to build a suite of armoured vehicles in Canada if it wins the submarine bid.
It has also signed a memorandum of understanding with Algoma Steel in Sault Ste. Marie, Ont., committing up to $345 million to fund a new structural steel beam mill and purchase Algoma products for submarine construction and maintenance infrastructure.
Both plans are based on the notion that Hanwha Ocean wins the submarine contract.
In April, Hanwha produced a study that says all of its investments in Canada could create between 15,000 and 22,500 jobs annually through 2044.
Both Hanwha and TKMS are committed to building submarine maintenance facilities in Esquimalt, B.C., and Halifax to ensure Canada retains sovereign operational control over the fleet.
The joint German and Norwegian bid involves pitching the Type 212CD submarine to Canada. The design is an updated version of the Type 212, a class of boats already in service with three allied navies.
Prime Minister Mark Carney has announced that the field of contenders for Canada’s new submarines is down to two bidders, Germany’s TKMS and South Korea’s Hanwha Ocean.
The German government has taken the lead and proposed a multibillion-dollar economic and industrial benefits package, including a broad cross-section of economic investments over 30 years.
Some of those plans involve large-scale investments in domestic EV battery production in Canada, as well as funding and infrastructure support for Canadian rare earth mining and resource security.
Germany has also floated the idea of potentially buying Bombardier aircraft for its VIP and early-warning fleets.
