Canada’s Submarine Acquisition: A Strategic Overview

In September 2024, Canada confirmed its intention to procure twelve new submarines as part of a CAD 60 billion program. The French company Naval Group approached this opportunity with caution. Having recently been awarded a contract by the Netherlands for the BlackSword Barracuda (Orka class), Naval Group believed that such a significant strategic project warranted rigorous study before any commitments were made. Ultimately, they announced their participation in the selection process for the Canadian Patrol Submarine Project (CPSP).

Operational Requirements and Strategic Partnerships

One of the Royal Canadian Navy’s (RCN) primary requirements is for submarines capable of operating under ice and conducting long-duration missions. Naval Group benefitted from the support of the French Navy, with the nuclear attack submarine (SNA) Tourville making a scheduled stop in Halifax. This visit was seen as an excellent opportunity to share operational, human, and industrial expertise. Colonel Bruno Heluin, the defense attaché at the French Embassy in Canada, emphasized France’s unique capabilities in enhancing Canada’s submarine capacity.

Competitive Landscape: Emerging Contenders

However, Naval Group’s cautious approach may have hindered its position. Competitors, notably German company TKMS and South Korea’s Hanwha Ocean, quickly mobilized to secure the contract, forming partnerships with Canadian firms. As a result, on August 26, the Canadian government announced that TKMS and Hanwha Ocean had qualified for the second phase of the CPSP, while Naval Group, Saab (partnered with Damen), and Navantia were eliminated from consideration.

Evaluation Criteria and Future Prospects

The decision was based on a comprehensive assessment of Canada’s needs within the CPSP, including construction timelines and delivery schedules for the new submarine fleet. The Canadian government collaborated with other nations and armed forces to exchange lessons learned and gain insights into their respective submarine acquisition, infrastructure, and sustainment programs.

While the announcement did not specify the submarine models proposed by TKMS and Hanwha Ocean, the decision is expected to be between the German U212CD and the South Korean KSS-III Batch 2.

Strategic Diversification and Long-Term Goals

The CPSP presents an opportunity for Canada to diversify its defense partnerships while collaborating with allies and partners, ultimately creating long-term prospects for the Canadian maritime and defense industries. Notably, TKMS may have an edge over its South Korean competitor due to a strategic partnership proposed by Germany and Norway in May 2014 aimed at protecting Arctic and North Atlantic maritime routes, which is crucial for Ottawa. The Norwegian and German navies are set to receive U212CD submarines soon.

Government Commitment to Submarine Acquisition

David J. McGuinty, the Canadian Minister of Defense, stated, “Canada is taking a significant step in acquiring next-generation submarines for the Royal Canadian Navy. Our goal is to defend our sovereignty, protect Canadians, and ensure that our Armed Forces have the necessary tools. The Canadian Patrol Submarine Program allows us to strengthen our alliances, diversify our defense partnerships, and create opportunities for Canadian industry.”

Historical Context: France’s Previous Attempts

This marks the second instance in which France has failed to sell submarines to Canada. In the 1980s, Ottawa was on the verge of acquiring up to twelve Rubis-class SNAs under the Canadian Submarine Acquisition Program (CASAP), but the project was ultimately “torpedoed” for political reasons.