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Canada Invests in Naval Power with River-class Destroyers for Anti-Submarine Warfare and Air Defense.
The Government of Canada has officially announced on 8 March 2025, the awarding of a major contract to Irving Shipbuilding Inc. (ISI) for the construction of the new River-class destroyers for the Royal Canadian Navy (RCN). This naval construction program is part of the national defense strategy Our North, Strong and Free (ONSAF). It aims to provide the RCN with a modern fleet that meets Canada’s operational needs in the coming decades. The initiative also includes support for the domestic shipbuilding industry, generating thousands of jobs and contributing to the Canadian economy.
Derived from the British Type 26 design, the River-class destroyers are intended for a wide range of missions, from anti-submarine warfare (ASW) to extended air defense (Picture source: Canadian Navy)
This contract, with an initial value of CAD 8 billion, including taxes, will fund the construction of the first three River-class ships. The program’s total estimated cost for the commissioning of these initial destroyers is CAD 22.2 billion, covering the acquisition of the necessary equipment, systems, and munitions. The ships will be named after three of Canada’s major waterways: HMCS Fraser, HMCS Saint-Laurent, and HMCS Mackenzie, representing the Pacific, Atlantic, and Arctic Oceans, respectively.
Derived from the British Type 26 design, the River-class destroyers are intended for a wide range of missions, from anti-submarine warfare (ASW) to extended air defense. With a displacement of approximately 8,000 tons, these ships will be equipped with the advanced AN/SPY-7 radar and the AEGIS combat system, ensuring interoperability with NORAD and the U.S. Navy. Their arsenal will include SM-2 Block IIIC missiles for air defense, Evolved Sea Sparrow Missiles (ESSM) Block II for close-range protection, and Naval Strike Missiles (NSM) for anti-ship capabilities. Anti-submarine warfare will be supported by a towed sonar system developed by Ultra Electronics and an S2150 hull-mounted sonar, while torpedo launchers will be installed on board. The Leonardo 127mm Vulcano gun will provide naval fire support, while close-range defense will be ensured by the Rolling Airframe Missile (RAM) system and two stabilized Leonardo Lionfish 30/X 30mm guns.
Construction of these ships will take place at the Irving Shipbuilding yard in Halifax, incorporating lessons learned from the British Type 26 and Australian Hunter programs. The project plans for the construction of 15 units to replace the decommissioned Iroquois-class destroyers and the Halifax-class frigates, with the first ship, HMCS Fraser, expected to enter service in the 2030s. However, the estimated total cost of between CAD 31 billion and CAD 43 billion raises concerns about the program’s long-term financial viability. Nonetheless, the River-class destroyers will offer enhanced flexibility through a modular design that allows for the integration of future systems and operational upgrades.
Designed to replace the four retired Iroquois-class destroyers and twelve Halifax-class frigates, these ships will feature advanced underwater sensors, state-of-the-art radar, and modern weapon systems, enabling them to operate in both deep-sea and complex coastal environments. Their missions will include naval combat operations, surveillance, counter-piracy and counter-terrorism efforts, maritime interdiction, and support for humanitarian operations.
The construction of these ships falls under the National Shipbuilding Strategy (NSS), which aims to strengthen Canada’s shipbuilding industry by enhancing its capabilities and supporting workforce development. ISI, based in Halifax, is responsible for their construction and has received an investment of CAD 871.7 million to modernize its infrastructure and improve production efficiency. This program is expected to contribute CAD 719.3 million annually to Canada’s GDP and generate or maintain approximately 5,250 jobs per year between 2025 and 2039, with significant economic benefits for the Atlantic region.
To support the commissioning and long-term maintenance of the new destroyers, the Department of National Defence is constructing a land-based testing facility in Halifax, scheduled for completion in 2027. Additionally, CAD 463 million has been allocated to upgrading shipyard facilities to ensure delivery timelines are met. Canada is also applying its Industrial and Technological Benefits (ITB) policy to this project, requiring contractors to reinvest amounts equivalent to the contract value into the Canadian industry, with a focus on workforce development, technological innovation, and industrial expansion.
Spending on the acquisition of River-class destroyers plays a key role in Canada’s goal of increasing defense expenditures to 2% of GDP, in line with NATO commitments. These investments are also expected to help exceed NATO’s guideline that at least 20% of defense spending be allocated to major military equipment programs.
With this contract, the Government of Canada confirms its commitment to equipping the Royal Canadian Navy with a modern and operational fleet while supporting the domestic shipbuilding industry. The commissioning of the first ships will be a significant milestone in renewing the country’s naval capabilities, strengthening Canada’s maritime security and its ability to operate alongside international partners.