On Wednesday October 19th, the Canadian government has awarded $8 billion shipbuilding contracts to Seaspan Marine, a company stationed in North Vancouver. The entire contract–$35 billion— is the largest single military procurement in Canadian history, and the money will be distributed to Seaspan to build non-combat vessels. Nevertheless, the biggest piece of the contract, which is worth $25 billion, has been given to Irving shipyard in Halifax to build major military vessels like the Arctic Icebreakers. This enormous contracts were expected to revive the local shipbuilding industry that has been stagnated by foreign competitors like South Korea, and was also anticipated to create 8000 more jobs at the peak of the project, with an average of 6000 workers over the range of 30 years. Unfortunately, since British Columbia has failed to hit the jackpot, only 4000 jobs are expected to form. 8 billion dollars, although it is gigantic money as an individual, is not enough to revive shipbuilding industry in the West Coast. The money would trickle through the market and create benefits, but final outcome is gloomy when it is looked upon in terms of a long run. When the job is done, I think everything is likely to bounce back to its original position.
http://www.vancouversun.com/billion+benefits+from+ship+contract/5586222/story.html
source:Lots Shipping LTD
