1. Presentation to Queens University Shipbuilding Conference 4 November 2009

2. Introduction State of Shipbuilding in Canada. Prospectus. Other Determining Factors. A Sustainable Government Shipbuilding Strategy. State of Shipbuilding in Canada. Prospectus. Other Determining Factors. A Sustainable Government Shipbuilding Strategy.

3. State of Shipbuilding 5 larger shipyards. 6-8 smaller yards with capability to build. Many small yards specialize in: – Repair. – Component manufacture. All build yards also repair. Historically it has been at least 15 years between navy programs and even more for the Coast Guard. 5 larger shipyards. 6-8 smaller yards with capability to build. Many small yards specialize in: – Repair. – Component manufacture. All build yards also repair. Historically it has been at least 15 years between navy programs and even more for the Coast Guard.

4. What do we build? All Ships for Navy & Coast Guard – JSS, CPF, AOPS, Training – Patrol, Science, Ice breaking vessels Smaller complex commercial vessels – Tugs, fireboats, pilot vessels – Ferries of all kinds – OSV’s, AHTS, Platform topside Modules – Great Lakes Vessels All Ships for Navy & Coast Guard – JSS, CPF, AOPS, Training – Patrol, Science, Ice breaking vessels Smaller complex commercial vessels – Tugs, fireboats, pilot vessels – Ferries of all kinds – OSV’s, AHTS, Platform topside Modules – Great Lakes Vessels

6. Build in Canada Policy – Applies to all Government vessels. – Has recently been reaffirmed. – Maximizes Canadian content & technology. – Maximizes industrial & regional benefits. – Intellectual property remains in Canada. – Enhances Canadian jobs and economic benefits. – Contributes to the Maritime Defence of Canada by providing technical support to the Navy. – Applies to all Government vessels. – Has recently been reaffirmed. – Maximizes Canadian content & technology. – Maximizes industrial & regional benefits. – Intellectual property remains in Canada. – Enhances Canadian jobs and economic benefits. – Contributes to the Maritime Defence of Canada by providing technical support to the Navy.

9. Prospectus Government Vessels

10. Prospectus Commercial Vessels Unable to compete with Asian and European Shipyards. Have never had the Government support other nations have been given. Jones Act excludes Canadian entry into US market in spite of NAFTA. Niche markets are a possibility. Canadian owners build: – In Asia because of Cost. – In Europe because of financing. Future commercial building will be for domestic market. Shipbuilding will be dependent on Government work. Unable to compete with Asian and European Shipyards. Have never had the Government support other nations have been given. Jones Act excludes Canadian entry into US market in spite of NAFTA. Niche markets are a possibility. Canadian owners build: – In Asia because of Cost. – In Europe because of financing. Future commercial building will be for domestic market. Shipbuilding will be dependent on Government work.

11. Other Determining Factors Geography A ponderous and expensive government procurement system. Lack of a National Marine/Shipbuilding strategy. Excellent education and training institutions. Skilled workforce. Free trade. Government determination to invest in their fleets. Geography A ponderous and expensive government procurement system. Lack of a National Marine/Shipbuilding strategy. Excellent education and training institutions. Skilled workforce. Free trade. Government determination to invest in their fleets.

12. A Shipbuilding Strategy A strategy that will reduce the boom and bust cycles the industry is experiencing now. Shipyards prequalify to build specific types of ships. Advantages: – Develop a strong partnership between government & industry. – Develop centres of excellence. – Most appropriate facilities do the work. – Cost of bidding a project reduced. – Procurement process is simplified. – Earlier & more open communication between all parties. – Ship delivery expedited. A strategy that will reduce the boom and bust cycles the industry is experiencing now. Shipyards prequalify to build specific types of ships. Advantages: – Develop a strong partnership between government & industry. – Develop centres of excellence. – Most appropriate facilities do the work. – Cost of bidding a project reduced. – Procurement process is simplified. – Earlier & more open communication between all parties. – Ship delivery expedited.

13. Shipbuilding Association of Canada