German shipbuilder TKMS has been named the preferred bidder to supply up to 12 new submarines for the Canadian navy. CEO Oliver Burkhard recently visited Ottawa to coordinate the transition from the aging Victoria-class fleet and outline a delivery schedule spanning the next two decades.
The eight-month sprint to preferred bidder status
The procurement process for Canada's next generation of submarines moved at an unprecedented pace. According to The Canadian Press, the timeline from the initial request for proposal to the final decision took only eight months, a process that CEO Oliver Burkhard noted typically lasts between two and three years. This acceleration placed significant pressure on TKMS, which was simultaneously managing an initial public offering during the bid window.
Prime Minister Mark Carney announced TKMS as the preferred bidder on July 6, noting that the competition with South Korean rival Hanwha was a close race. For Oliver Burkhard, the 54-year-old former union leader, the intensity of this specific bid represented the most challenging experience of his professional life.
A 2033 delivery date for the first 212CD
The proposed plan involves replacing Canada's four aging Victoria-class submarines, which are slated for retirement in the mid-2030s, with a larger fleet of up to 12 212CD submarines. As reported by The Canadian Press, TKMS aims to deliver the first vessel by 2033, with the entire fleet becoming operational by 2043.
This delivery schedule is not flexible, as TKMS has already committed production slots to other NATO members. Germany and Norway have orders that will be completed in the late 2030s, meaning the Canadian production pipeline will only consist of five or six vessels after those prior commitments are met. Oliver Burkhard emphasized that the company has expanded its capacities specifically to ensure these dates remain firm.
The strategic alignment with Germany and Norway
Canada's decision to pursue the 212CD model is part of a broader NATO trend toward interoperability. By sailing the same class of boats as Germany and Norway, Canada joins a "sub club" that simplifies shared logistics and operational standards... Greece has also expressed interest in joining this group, though TKMS officials state that adding more nations will not push Canada further back in the production queue.
To handle the increasing demand for naval re-armament across NATO, TKMS is exploring partnerships with other European shipyards, such as the Spanish maker Navantia. While a spokesperson clarified that these partnerships would not affect the specific 212CDs destined for Canada, the move signals a shift toward an Airbus-style integrated European supply chain to speed up future deliveries.
The 18-month window to finalize industrial benefits
Despite being the preferred bidder, TKMS has not yet secured the final contract . Negotiations are expected to take between six and 18 months and will proceed along several "different tracks," including the primary submarine contract, marine infrastructure plans, and long-term servicing agreemennts.
A critical but currently undefined element of these talks is the package of industrial benefits TKMS must deliver to the Canadian economy.. While the primary contract might be settled within six months, the complex transition from the Victoria-class fleet and the lifelong maintenance plan for the 212CDs could take up to a year and a half to resolve. The source does not specify the exact financial terms of the multi-billion dollar deal or the specific nature of the industrial offsets required by the Canadian government.
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