Canada’s major submarine contract could transform Halifax’s economy, analysts say

Paul Hollingsworth explains how the submarine deal, which promises an economic benefit for the Canadian economy, could be pivotal for Halifax.

HALIFAX - Canada’s decision to choose German company Thyssenkrupp Marine Systems (TKMS) to build up to 12 new submarines is a clear message to the rest of the world about Canada’s approach to defence, according to naval analyst and researcher Ken Hansen.

“It says we are serious, and we are coming,” said Hansen, who is a retired commander with the Royal Canadian Navy.

Halifax will play a vital role in Canada’s submarine strategy going forward, Hansen added. Prime Minister Mark Carney announced on Monday that the partnership will create well over a 100,000 well-paying jobs across the country and Hansen said more than half will be in Halifax.

“This is fantastic economic news for the city,” he said. “It reminds me of Edmonton when the oil boom started in Alberta.”

‘Billions’ in investment

Nova Scotia Premier Tim Houston joined Mark Carney for the major announcement at HMC Dockyard in Halifax.

“Our province will play a central role, alongside British Columbia, to support these submarines over their full lifespan. Six submarines will be maintained and serviced in Halifax,” Houston said in a statement. “This will drive billions of dollars of investment into our region, create new career paths for Nova Scotians looking for steady work, and drive strong demand for domestic supply chains.”

Hansen expects the sub roll-out to be slow and it will take years before new submarines appear in Halifax Harbour.

“The first thing people will see will be the infrastructure development,” said Hansen, when referencing the work to produce an expanded navy footprint in a city that has a naval tradition going back almost three centuries.

Opportunities for young workers?

This announcement by the prime minister comes at a time when Halifax has experienced recent population growth, and the shipbuilding industry has seen a surge, producing navy and coast guard vessels.

“I think it’s a good thing for Halifax, and it helps put us back on the map,” said university professor Ed McHugh, who also worked at the Nova Scotia Community College for 25 years.

McHugh said building a new fleet of submarines will require an influx of workers, and he would not be surprised if young people in Nova Scotia pursue skilled trades programs in the future, knowing that work opportunities will be available.

“If I was looking ahead and predicting where I had a job and being able to stay in Atlantic Canada, I would take a hard look at the trades courses,” said McHugh, who is a part-time professor at three universities - Saint Mary’s, Dalhousie and Mount Saint Vincent.

There are questions about where a new submarine facility will be located. Halifax’s shoreline already has many navy ships and buildings, which means other locations on both sides of Halifax Harbour will need to be considered.