Business leader says he hopes Greater Victoria gets fair share of submarine money

The federal government’s submarine contract with a German company offers a “tremendous amount of opportunity” to propel British Columbia’s shipping industry, political and business leaders say.

Prime Minister Mark Carney announced in Halifax on Monday that Canada has chosen German defence manufacturer TKMS as the preferred supplier of up 12 submarines, with both sides now entering negotiations to be concluded no later than the end of 2027.

The prime minister said Canada expects the first four submarines to be delivered ahead of schedule in 2034. In case negotiations are unsuccessful, Canada may designate South Korea’s Hanwha Ocean as the preferred supplier and enter into negotiations. 

Dave Hargreaves, a senior vice-president with Seaspan, Canada’s largest shipbuilder, said the announcement is a huge boost for the industry.

“There is going to be tremendous amount of opportunity for the Greater Victoria area, for B.C. and frankly, across all of Canada to participate in this program,” he said. 

Several key details surrounding the announcement are still outstanding, including the final number of submarines to be stationed at CFB Esquimalt in Greater Victoria.   

British Columbia’s Jobs Minister Ravi Kahlon said it is not clear yet how many submarines will operate out of the home base for Canada’s Pacific fleet. 

“Our assumption is at least half, if not more than half, will be stationed in British Columbia,” he said. “It’s a conversation that we will have with the federal government.” 

But the minister said British Columbia will nonetheless benefit from the announcement because the submarines will require maintenance. 

“These maintenance contracts are 50-plus years, which will be really important for British Columbia,” he said.

Contracts like those are among the reasons why B.C. has doubled the funding for skills training and created a task force dedicated to the marine industry, Kahlon said. 

Seaspan currently holds the contract to maintain the current submarine fleet and Hargreaves said his company has been working with TKMS for around nine to 12 months.  

“Our role with them has been really to help them develop what the transition plan into Canada would look like, and then what the long-term sustainment plan would look like,” he said. 

While the submarines will be purchased abroad, the bid calls for local capabilities to sustain them, he said.

“So, our role has really been to lead the development of the plans and the proposal for TKMS for that,” he said, adding that the company has also been working with the Royal Canadian Navy and the federal government around those plans. 

“So, we are super excited around the selection today,” he said. “We see a lot of the advantages of the … German-Norwegian solution.” 

Hargreaves said TKMS has a long history of exporting submarines to other customers.

“So, they are very mature and sophisticated in how they deliver those submarines, and how they support the target country in terms of building its capability,” he said. 

For South Korea’s Hanwha Ocean, this contract would have been one of their first exports, Hargreaves added.

“So, it would be a lot more working with them to develop things more from the ground up,” he said. “We were ready to work with both them.” 

He said his company directly employs about 300 people in Greater Victoria area as part of its contract to service frigates and submarines, and the arrival of new submarines will further boost local employment. 

The company’s contract to service the Victoria-class submarines includes a supply chain with 400 companies, he said. “A large number of those are in the Victoria area,” he said. “So, we would expect that quite a number of those will transition across.”

John Wilson, CEO of the Greater Victoria Chamber of Commerce, said Monday that he hopes the region will get a fair share of the largest defence procurement in Canadian history.

Ottawa’s decision means more high-paying jobs for the region, he said. 

Wilson said the chamber will continue to work with governments to make sure regional companies will have a chance to contribute to the various supply chains connected to the project. 

Stephen Fuhr, secretary of state for defence procurement, told reporters in Esquimalt on Monday the economic benefits for the region will be substantial, but he could not give exact figures, because negotiations with TKMS are just starting. 

Fuhr said the project will create thousands of jobs in the region, although the final figure depends on the number of subs Canada eventually buys from the consortium.

The secretary of state said he is sure that Canada’s decision has caused some disappointment in South Korea. “Let’s be really honest about that,” he said. “But there was going to be an outcome, and one was going to get the opportunity, one wasn’t.”

Both bids were very strong, he said. 

“We will continue to work with South Korea,” Fuhr said. “We value them immensely.”

This report by The Canadian Press was first published July 6, 2026.

By Wolfgang Depner | Copyright 2026, The Canadian Press. All rights reserved.