Canada Awards $8 Billion Contract for River-Class Destroyers
The Canadian government has awarded an $8 billion contract to Irving Shipbuilding Inc. (ISI) for the construction of three River-class destroyers (RCD) for the Royal Canadian Navy (RCN). The announcement was made on 8 March 2025, by Defence Minister Bill Blair, Public Services and Procurement Minister Jean-Yves Duclos, and Veterans Affairs Minister Darren Fisher. This shipbuilding project is the largest in Canada since World War II and plays a key role in modernizing the country’s naval fleet. It is part of the National Shipbuilding Strategy, which focuses on replacing aging vessels with advanced warships to strengthen maritime defense. The new River-class destroyers will enhance the RCN’s capabilities, ensuring better protection of Canadian waters and supporting international security missions.
The initial $8 billion investment covers the first six years of construction, including the development of training programs, spare parts, and maintenance support. However, the total estimated cost to build and deliver the first three ships is projected at $22.2 billion. This figure includes payments to Irving Shipbuilding as well as additional expenses for equipment, systems, and ammunition required to commission the vessels. The first three ships will be named HMCS Fraser, HMCS Saint-Laurent, and HMCS Mackenzie, reflecting Canada’s major waterways. These vessels are based on BAE Systems’ Type 26 warship design and are intended to replace the retired Iroquois-class destroyers and the aging Halifax-class frigates. Equipped with advanced underwater sensors, state-of-the-art radar systems, and modern weaponry, the River-class destroyers will enhance the Royal Canadian Navy’s ability to respond to both open ocean and complex coastal threats.
The River-class Destroyer initiative will have a major impact on Canada’s economy, creating jobs and projected to boost GDP. The project is expected to contribute $719.3 million annually to Canada’s GDP and support 5,250 jobs each year from 2025 to 2039. Additionally, consumer spending by workers involved in the project will add another $191 million to the GDP and create 1,545 more jobs annually during the same period. This investment will be especially beneficial for Atlantic Canada, generating stable jobs and new opportunities for workers in the region. The initiative strengthens both the Canadian economy and the country’s shipbuilding industry, ensuring long-term growth and development.
The new River-class destroyers will strengthen the Royal Canadian Navy and support Canada’s defense and security commitments. These advanced warships will work with key allies, including NORAD, the Five Eyes intelligence alliance, NATO, and other coalition partners. Designed for multiple missions, the destroyers will help in counter-piracy, counter-terrorism, intelligence gathering, surveillance, embargo enforcement, and humanitarian aid. They will also play a vital role in search-and-rescue operations. This investment reinforces Canada’s commitment to protecting its waters and maintaining a strong naval presence on the global stage. The River-class destroyers will enhance national security while supporting international peacekeeping efforts.