THUNDER BAY — Heddle Shipyards has teamed up with a British Columbia shipyard competing for a federal contract that could bring significant spinoff work to Thunder Bay.
The Hamilton-based company bought the Thunder Bay yard in 2016.
Heddle has tried previously to get the federal government to include Ontario in the National Shipbuilding Strategy, but has been frustrated.
Its president, Shaun Padulo, and Mark Lamarre, CEO of Vancouver's Seaspan Shipyards, say that could change as a result of their decision to enter into an exclusive "teaming agreement" for the Canadian Coast Guard's future Polar icebreaker.
If Seaspan received the contract, Heddle would fabricate ship modules at its yards in Thunder Bay, Hamilton and Port Weller, Ontario.
In an interview with Tbnewswatch, Padulo said a lot of details have to be worked out still, but it would mean "long-term, sustainable jobs" for Thunder Bay.
In decades past, the former Port Arthur Shipbuilding Company employed hundreds of people, with a peak workforce of over 2,000 during World War II.
Most recently, Padulo noted, "There wasn't a whole lot going on there. There was an emergency docking once in a while."
Heddle has a partnership with Fabmar Metals of Thunder Bay, under which Fabmar sends staff to the facility for repair work and maintenance on an as-needed basis.
Padulo said participating in the construction of an icebreaker would "bring it back and revitalize it – not necessarily to what it was in its heyday – but certainly we'll be doing a lot more than what we have for the past few years."
He envisions allocating specific components of the ship to each Heddle location.
"We're working with Seaspan on the build strategy. I think there will be a significant amount of work for Thunder Bay," Padulo said, "for at least five to 10 years."
Seaspan was selected in 2011 as the government's strategic partner to build all large non-combat vessels, including a large icebreaker, and has made $185 million in capital upgrades since then.
Lamarre said it is the only shipyard in Canada with the required workforce, facilities and capacity currently in place to meet the revised 2029 target date for delivery of a Polar icebreaker.
It has already delivered two offshore fisheries science vessels to the Coast Guard, will soon complete a third, and is also building a joint support ship for the Royal Canadian Navy.
Seaspan was originally designated to build the John G. Diefenbaker, a Polar icebreaker that will replace the aging Louis St. Laurent.
Last year, however, the government unexpectedly removed it from Seaspan's order book, and replaced it with 16 smaller multipurpose vessels.
Seaspan still feels it's uniquely qualified to recapture the Diefenbaker contract, and that having an Ontario partner improves its case.
"We believe we are the only shipyard in Canada that could build the icebreaker entirely in Canada by the government's timeline," Lamarre said, noting that Seaspan's shipyard was built purposefully to construct a Polar icebreaker.
Asked why his company decided to partner with Heddle, Lamarre said the two firms have a compatible leadership culture, but he's also impressed with Heddle's capabilities.
"The National Shipbuilding Strategy is employing thousands of Canadians and rebuilding the marine industry across the country," Lamarre stated. "Heddle has broad domestic skills and facilities that so far have been untapped to support the strategy."
Padulo said Heddle's link with Seaspan provides a "a critical opportunity" to revitalize the shipbuilding industry in Ontario as well as in Newfoundland, where it also has a facility.
"I think this relationship we're building with Seaspan is going to be beneficial not only to both companies but also to Canada," he said.
In addition to Seaspan, the government has a strategic partnership with Irving Shipbuilding on the east coast for the construction of naval vessels.
Last year, the government said it would add a third company to the National Shipbuilding Strategy for the acquisition of icebreakers.
In December it named Quebec's Davie shipyard as an eligible participant.
Davie is thought to be in line to win an order for six medium icebreakers, but has also lobbied extensively for the Polar icebreaker job.
Heddle had partnered unsuccessfully with a Dutch-based company in an effort to qualify as Ottawa's third partner.
Padulo said that failure ultimately led to Seaspan reaching out to Heddle for discussions that started several months ago.
In hindsight, he said, it is a better outcome for his company.
"I probably was frustrated, but now, looking back, it was probably the best thing that happened to Heddle, because we are going to potentially be able to play an even more meaningful role than if we had become the third yard."
