Hanwha Ocean touts proven submarines, faster delivery, economic benefits in race for one of world's largest naval contracts
The Dosan Ahn Chang-ho, a 3,000-ton KSS-III submarine operated by the South Korean Navy, arrives at Canada's Esquimalt Naval Base in Victoria on May 24. (ROK Navy via Yonhap)
South Korea’s naval ambitions are facing their most significant overseas test yet as Hanwha Ocean vies for a deal that could be worth up to 60 billion Canadian dollars ($42.88 billion).
The Canadian Patrol Submarine Project, or CPSP, aims to acquire up to 12 diesel-electric submarines for the Royal Canadian Navy, operating across the Arctic, Atlantic and Pacific oceans. South Korea’s Hanwha Ocean-led consortium is up against Germany’s Thyssenkrupp Marine Systems as finalists, with industry officials expecting the decision to be announced soon before mid-July.
The winner will not only build the submarines but also provide decades of maintenance, repair and overhaul services, making it one of the largest defense procurements in Canadian history and the biggest potential overseas defense export for South Korea.
Korea's proven platform vs. Germany's new technology
The competition has narrowed to a decision between South Korea’s emphasis on operational readiness and reliable delivery timelines versus Germany’s focus on next-generation submarine technology, experts say.
Hanwha Ocean is putting forward a variant of its KSS-III submarine, with its Dosan Ahn Changho-class vessels already deployed by the South Korean Navy. TKMS, meanwhile, has proposed the Type 212CD submarine jointly developed with Norway, a platform designed to incorporate the latest European submarine technologies.
Hanwha Ocean has been highlighting the KSS-II’s operational record, arguing that Canada would be purchasing a submarine already proven at sea rather than one still awaiting full deployment.
South Korea recently dispatched the ROK Navy’s 3,000-ton-class submarine Dosan Ahn Changho to Canada, where it conducted demonstrations and joint exercises with the Royal Canadian Navy. The voyage from Busan through Guam and Hawaii to Canada’s Esquimalt naval base was designed to prove the vessel’s long-range deployment capability, a critical requirement for a country seeking to monitor the Arctic, Atlantic and Pacific oceans simultaneously.
Hanwha said its vessels are proven in-service and fully meet and exceed all of the requirements for the project.
“These include superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all three of its oceans,” the group said.
The latest voyage also showed the submarine’s full capability to operate with key NATO allies such as Canada, it added.
A recent report by James Kim, director of the Korea Program at The Stimson Center, also echoed this view, saying the KSS-III leads with “reliable delivery timeline and proven performance,” reducing technical, financial and operational risk from Canada’s point of view. Meanwhile, Germany's 212CD’s “defining characteristic is its novelty — a new hull form and combat systems," the report said.
TKMS counters with the Type 212CD — a platform co-developed with Norway’s Kongsberg Defense and Aerospace — touting it as one of the most advanced conventional submarine platforms in Europe.
The German company stressed that the new platform comes with excellent stealth capability, the powerful ORCCA combat management system, and advanced sensor technology and weapon systems.
TKMS’ strongest selling point may be its position within the NATO defense ecosystem. The German shipbuilder supplies more than 70 percent of NATO’s conventional submarine fleet, giving Canada access to an established network of allied operators, a shared training framework and logistics support.
For Ottawa, whose maritime strategy is closely tied to coalition operations, the prospect of seamless interoperability with NATO and US forces could prove a significant lead.
Delivery schedule: a critical factor
Beyond technology, delivery time is expected to be one of the most critical criteria as Canada’s aging fleet approaches retirement.
Hanwha has proposed delivering the first submarine in 2032, while supplying four boats before Canada’s fleet is scheduled for retirement in 2035. The complete fleet of 12 submarines will be delivered by 2043.
Meanwhile, TKMS has recently pledged to deliver four submarines to Canada by 2036 by reallocating production slots originally intended for German and Norwegian orders, according to Germany’s defense minister in a report by CBC.
The move was widely seen as a direct response to Hanwha Ocean’s pitch of faster and more predictable delivery schedules, which is seen as a key advantage for the South Korean bidder.
Industrial packages at the center
As both companies meet Canada’s military requirements and t…
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