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The Nsps Shipbuilding Value Chains

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The Nsps Shipbuilding Value Chains THE NSPS SHIPBUILDING VALUE CHAINS January 2013 Gary Gereffi, Lukas Brun, Shawn Stokes & Andrew Guinn The NSPS Shipbuilding Value Chains The Nova Scotia Department of Economic and Rural Development and Tourism (NSERDT) sponsored the research for this report. This report identifies, to the extent knowable at this early stage, companies in the shipbuilding value chain capable of providing the products and services necessary to construct and maintain the Arctic/Offshore Patrol Ships (AOPS), Joint Support Ships (JSS), Polar Icebreaker, and Offshore Fisheries/ Offshore Oceanographic Science Vessel (OFSV/OOSV) value chains. Please note that the Canadian Surface Combatant (CSC) value chain is omitted from the report due to differences in its size, scope, and production schedule. Errors of fact or interpretation remain the exclusive responsibility of the authors. The opinions expressed or conclusions made in this study are not endorsed by the project sponsor, companies mentioned, or individuals interviewed. We thank Rich Billard (MDA), Jim Hanlon (HMRI), John Huxtable (Hawboldt Industries), John Gillis (Kongsberg Maritime) and five anonymous reviewers in industry and government for reading the report and providing their perspective. We welcome comments and suggestions. The corresponding author can be contacted at [email protected]. Front picture: Microsoft Clip Art, used with permission © January 2013 Center on Globalization, Governance & Competitiveness, Duke University Released January 24, 2013 1 The NSPS Shipbuilding Value Chains List of Abbreviations ABS American Bureau of Shipping FELEX Frigate Life Extension Program Floating Production Storage And ACOA Atlantic Canada Opportunities Agency FPSO ADCP Acoustic Doppler Current Profilers Offloading GMDSS Global Maritime Distress Safety System AHTS Anchor-Handling Tug Supply GVCs Global Value Chains AOPS Arctic/Offshore Patrol Ships HFIR Helicopter In-Flight Refueling AUV Autonomous Underwater Vehicle HFO Heavy Fuel Oil BHP Break Horsepower HMRI Halifax Marine Research Institute BWM Ballast Water Management Command, Control, Communication, HPU Hydraulic Power Unit C4IS Heating, Ventilation, and Air Computer, Intelligence, and Surveillance HVAC CAD Canadian Dollar Conditioning International Association Of CADm Canadian Dollar In millions IACS Classification Societies CCG Canadian Coast Guard IC Industry Canada CCTV Closed-Circuit Television System International Council for Exploration of Duke Center On Globalization, ICES CGGC the Seas Governance & Competitiveness IFF Identification, Friend-or-Foe CGP Controlled Goods Program ILS Integrated Logistical Support Canadian Hydraulics Centre Of The CHC IMO International Maritime Organization National Research Council CIWS Close-In Weapons Systems IMR Inspection, Maintenance And Repair CMMI Capability Maturity Model Integration IOT Institute of Offshore Technology Integrated Platform Management CMS Command Management System IPMS System COTS Commercial Off the Shelf IRB Industrial and Regional Benefits CSC Canadian Surface Combatant ISI Irving Shipbuilding Inc. CTD Conductivity, Temperature And Depth International Organization for ISO CWIS Close-In Weapons System Standardization DAB Design and Build ISS In-Service Support International Traffic In Arms DGPS Differential Global Positioning System ITAR Regulations DND Department Of National Defence JSS Joint Support Ships DNV Det Norske Veritas LAN Local Area Network. DP Dynamic Positioning LARS Launch And Recovery System E3 Electromagnetic Environmental Effects LNG Liquid Natural Gas ECWS Electronic Cooling Water Systems LO-LO Lift-On Lift-Off EEZ Exclusive Economic Zones MCDV Maritime Coastal Defence Vessels EO Electro-Optical MSPV Mid-Shore Patrol Vessels EPA US Environmental Protection Agency MOTS Military Off the Shelf EPTL Enhanced Technology Priority List MVP Moving Vessel Profiler Emergency Rescue And Recovery ERRV Vessels MW Megawatts ERT Environmental Response NOx Nitrogen Oxides Nova Scotia Economic and Rural EU European Union NSERDT Development and Tourism 2 The NSPS Shipbuilding Value Chains National Shipbuilding Procurement NSPS ROV Remotely Operated Vehicle Strategy RPM Revolutions per Minute OFSV Offshore Fisheries Science Vessel SAR Search & Rescue OOSV Offshore Oceanographic Science Vessel SEARAM Phalanx and RAM Program of Energy Research and PERD Development SME Small-and-Medium-Sized Enterprise PM Particulate Matter SOF Special Operations International Convention for the Safety PSV Platform Service Vessels SOLAS of Life at Sea Public Works and Government Services PWGSC Canada SOx Sulfur Oxides RAM Rolling Airframe Missile STC Surface Treated Composite RAS Replenishment-At-Sea TBS Treasury Board Secretariat RCMP Royal Canadian Mounted Police TC Transport Canada Third United Nations Convention on RCN Royal Canadian Navy UNCLOS III the Law of the Sea RDA Regional Development Agencies VCF Venture Capital Funds RFP Request For Proposals Warship Electronic Chart Display and WECDIS RHIB Rigid Hull Inflatable Boat Information System RO-RO Roll-On Roll-Off 3 The NSPS Shipbuilding Value Chains Table of Contents Executive Summary ............................................................................................................ 8 1. Introduction ................................................................................................................. 13 1.1. Report Overview ............................................................................................................... 13 1.2. National Shipbuilding Procurement Strategy (NSPS) ........................................................... 16 2. The Shipbuilding Value Chain ........................................................................................ 20 2.1. Design ............................................................................................................................... 22 2.2. Component Production ..................................................................................................... 25 2.3. Component Distribution .................................................................................................... 35 2.4. Assembly & Integration ..................................................................................................... 36 2.5. Production Support Services .............................................................................................. 38 2.6. Post-Production Services ................................................................................................... 39 2.7. Supporting Organizations and Institutions ......................................................................... 39 2.8. Value-added activities ....................................................................................................... 44 2.9. Nova Scotia and the Shipbuilding Value Chain .................................................................... 46 3. Arctic/Offshore Patrol Ship (AOPS) ............................................................................... 50 3.1. Ship Purpose and Characteristics ....................................................................................... 50 3.2. AOPS Value Chain.............................................................................................................. 53 4. Joint Support Ships (JSS) ............................................................................................... 64 4.1. Ship Purpose and Characteristics ....................................................................................... 64 4.2. Joint Support Ship Value Chain .......................................................................................... 65 5. Polar Icebreaker ........................................................................................................... 77 5.1. Ship Purposes and Characteristics ...................................................................................... 77 5.2. Icebreaker Value Chain ...................................................................................................... 81 6. Science Research Vessels ............................................................................................ 104 6.1. Ship Purposes and Characteristics .................................................................................... 104 6.2. Research Vessels Value Chain .......................................................................................... 110 7. Findings and Recommendations ................................................................................. 135 7.1. Supporting Nova Scotia companies .................................................................................. 135 7.2. Moving into higher value-added activities ........................................................................ 140 7.3. Regional value chain development activities .................................................................... 141 Bibliography ...................................................................................................................... 145 Appendix A- Firms in the Nova Scotia Shipbuilding Value Chain ......................................... 153 Appendix B: Known components for the OFSV, organized by subsystem ............................ 157 4 The NSPS Shipbuilding Value Chains Figures Figure 1: Research questions ...................................................................................................................... 15 Figure 2: The NSPS Combat and Non-Combat Vessels ..............................................................................
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