Halifax, Nova Scotia – March 8, 2025 – The Government of Canada has taken a significant step toward modernizing its naval fleet with the announcement of a landmark contract awarded to Irving Shipbuilding Inc. for the construction of the Royal Canadian Navy’s (RCN) new River-class destroyers. Unveiled today by the Honourable Bill Blair, Minister of National Defence, alongside Ministers Jean-Yves Duclos and Darren Fisher, this deal marks a pivotal moment in Canada’s defence strategy and industrial development.
The River-class destroyers, previously known as the Canadian Surface Combatant (CSC) project, are set to become the backbone of Canada’s maritime combat power. Designed to replace the now-retired Iroquois-class destroyers and the aging Halifax-class frigates, these advanced warships promise to deliver cutting-edge capabilities to meet modern threats in both open-ocean and coastal environments. With an initial order of three ships—named HMCS Fraser, HMCS Mackenzie, and HMCS St. Lawrence after Canada’s iconic waterways—the project underscores a commitment to national sovereignty and global security.
A Multi-Billion-Dollar Investment
The initial implementation contract, valued at $8 billion, covers the first six years of construction for the trio of destroyers. However, military planners estimate the total cost to fully outfit and launch these ships will reach $22.2 billion. Looking ahead, the Department of National Defence projects the broader program—which aims to deliver up to 15 vessels—could climb to between $56 billion and $60 billion, reflecting the scale and ambition of this naval renewal effort. The first ship is expected to be delivered in the early 2030s, with construction already underway at Irving Shipbuilding’s Halifax Shipyard.
“This is a historic investment in Canada’s defence and its workforce,” said Minister Blair during the announcement. “By building these state-of-the-art destroyers here at home, we’re not only equipping our Navy with the tools it needs to protect our waters and support our allies, but also creating thousands of high-quality jobs for Canadians.”
Economic Boost and Industry Impact
Beyond its military significance, the River-class project is a boon for Canada’s economy. The contract is expected to sustain over 5,000 direct jobs across the country, with an additional 10,000 indirect jobs supported through supply chains and related industries. Irving Shipbuilding, based in Halifax, will lead the effort, leveraging its expertise as a key player in Canada’s National Shipbuilding Strategy (NSS).
Under the NSS Value Proposition, Irving is required to reinvest 0.5% of its contract value into three priority areas: human resources development, technology investment, and industrial development. This reinvestment aims to strengthen Canada’s marine industry and foster innovation for decades to come. “This project isn’t just about ships—it’s about building a stronger, more capable Canada,” noted Minister Duclos, emphasizing the dual benefits of security and economic growth.
A Modern Fleet for a Complex World
The River-class destroyers are based on the proven design of the UK’s Type 26 frigate, adapted to meet Canada’s unique operational needs. These warships will be equipped to handle a range of missions, from countering sophisticated threats on the high seas to supporting humanitarian and peacekeeping operations worldwide. Vice-Admiral Angus Topshee, Commander of the RCN, hailed the announcement as a “major step forward” in delivering a fleet capable of defending Canada’s interests against any adversary.
To ensure the ships’ readiness, the Department of National Defence is also constructing a land-based testing facility in Halifax. This facility will simulate real-world conditions, allowing the Navy to refine systems and train crews before the vessels even hit the water—a proactive approach to maintaining operational excellence.
Aligning with NATO Commitments
The announcement comes as Canada works to meet its NATO obligations, particularly the alliance’s target of spending 2% of GDP on defence. The River-class project, combined with other investments in major equipment, positions Canada to exceed NATO’s guideline of allocating 20% of defence spending to modern capabilities. “These destroyers are a testament to our resolve to protect our sovereign territory, contribute to North American security, and stand with our allies against global threats,” Blair added.
A Legacy in the Making
For Canadians, the River-class destroyers represent more than just military hardware—they embody a connection to the nation’s geography and history. Named after rivers that flow into the Pacific, Atlantic, and Arctic oceans, the ships symbolize Canada’s vast reach and its role as a maritime nation. As construction ramps up, the project promises to leave a lasting legacy of security, innovation, and prosperity.
While challenges remain—such as managing costs and timelines in a project of this magnitude—the contract award signals a confident stride toward a future where Canada’s Navy is equipped to meet the demands of an ever-changing world.
Quick facts
- The RCD will replace the capabilities found in the four retired Iroquois-class destroyers and the 12 Halifax-class frigates with a single combat-capable ship that can meet multiple threats on both the open ocean and in the highly complex coastal environment.
- The RCD is based on BAE Systems’ Type 26 warship design being built by the United Kingdom and a variant of which is being built for Australia as the Hunter Class Frigate. The RCD will have enhanced underwater sensors, state-of-the-art radar and modern weapons.
- The first three ships will be named His Majesty’s Canadian Ships Fraser, Saint-Laurent, and Mackenzie, after Canada’s most important waterways that reach the Pacific, Atlantic, and Arctic oceans.
- This year marks the 15th anniversary of the NSS. Since 2010, the NSS has contributed to ensuring Canada’s sovereignty by equipping the RCN and the Canadian Coast Guard with new vessels and maintaining their existing fleets to protect Canada’s national interests both at home and abroad.
- NSS contracts awarded between 2012 and early 2025 contributed over $36 billion to Canada’s GDP and have created or maintained more than 20,400 jobs annually between 2012 and 2024.
- The initial implementation contract value is for an agreed contract period of six years, enabling the required work to be executed in that period, with a contract extension to follow as the successful construction progresses.
- The cost estimate includes the costs that will be paid to ISI through the implementation contract, including material and labour costs associated with ship construction, initial spares and the development of training, maintenance and logistics support products required to support the ships in service, as well as costs associated with the delivery of equipment, systems and ammunition for which Canada is responsible to deliver as Government Supplied Materiel, procured by Canada either through the US Foreign Military Sales Program or through other contracts directly with equipment suppliers.
- Canada’s Industrial and Technological Benefits Policy applies to the RCD project, which requires companies to make investments and provide business activities in Canada equal to the value of the related contracts.
- The NSS Value Proposition applies to the RCD project and requires ISI to reinvest the equivalent of 0.5% of its RCD contracts in the three priority areas to benefit the greater Canadian marine industry: human resources development, technology investment, and industrial development.
- To help bring the RCD into service and support them throughout their lifecycle, the Department of National Defence (DND) is building a land-based testing facility on a portion of DND-owned land in Halifax, Nova Scotia. Construction is expected to begin this summer with expected completion in 2027.
- In 2023, the Government of Canada announced that it was investing $463 million (taxes included) in shipyard infrastructure to ensure that ISI has the capability and capacity to enhance build efficiency to meet the RCD delivery timelines. The Government of Canada and ISI agreed to a strategy that authorizes and funds the infrastructure enhancements in phases. In May 2024, additional funding was provided to support the remaining phases of work. The revised total value of the investment is estimated at $871.7 million (taxes included).
- Expenditures on major capability acquisitions like the River-class destroyers contribute significantly to Canada’s overall defence spending. As Canada works to reach 2% of GDP spending on defence, we remain focused on ensuring the CAF has the modern capabilities it needs to remain a strong fighting force able to defend Canada’s sovereign territory, North America, and our allies from global threats. Additionally, spending on major equipment such as the River-class destroyers has Canada on track to exceed NATO’s 20% guideline for major equipment expenditures as a share of overall defence spending.