New Dry Dock Generates New Business

A new dry dock in the Halifax Shipyard has generated more than $3.7 million in work since going into service last September. The recently arrived Louis St. Laurent is the seventh vessel to be repaired in the new Scotia Dock.

"The types of vessels that we've been repairing demonstrate the improved versatility of the new, larger Scotia Dock," said Andrew McArthur, president of Irving Shipbuilding. "We've done work on tugs, container ships, coast guard vessels and even the Cat high-speed ferry. Six of these seven jobs would not have been possible with the old dry dock."

The new Scotia Dock replaces a smaller 70-year-old dry dock that was beyond repair and no longer functional. It has since been sold for scrap. The new dock has been keeping 75 workers employed since it became operational.

"This added capacity, coupled with our skilled and experienced workforce, is giving the Halifax Shipyard a real competitive advantage in a wider variety of jobs," said Mr. McArthur.

Halifax Shipyard is purchasing the new Scotia Dock with a loan of $11.5 million from the Department of Economic Development and Tourism.

"This is an investment in good jobs, in the port of Halifax and in Nova Scotia's shipbuilding industry," said Economic Development and Tourism Minister Manning MacDonald. "The loan for this new dry dock is giving the company the ability to attract work it wasn't able to handle before. So the long-term prospects for the Halifax Shipyard are better than ever."

Halifax Shipyard employs 700 people with payroll and benefits of $40 million, which generates $10 million in provincial tax revenues a year. Irving has invested more than $23 million in capital improvements since taking over the facility in 1994.

The loan for the dry dock is tied to an agreement, reached in 1997, that the company take over the operation of the Shelburne Shipyard. The company has since invested more than $1 million to upgrade that yard.

"Shelburne had been a drain on public finances before the Irvings took over," said Mr. MacDonald. "The yard is now employing 28 people where none had worked before. This agreement is ensuring the long-term operation of the Halifax Shipyard, and it's given a new lease on life to Shelburne as well."

Economic Development and Tourism is also transferring ownership of another dry dock -- the 20 year old Nova Dock -- to Halifax Shipyard. Under the terms of the agreement, the company is required to keep both dry docks operating in Halifax Harbour.

"The Irvings will be responsible for upkeep and maintenance of these dry docks," said Mr. MacDonald. "So we're reducing public liability and ensuring the long-term future of this important part of our shipbuilding industry at the same time.

"The Irvings are very successful shipyard operators and we want to see the company continue to grow in Nova Scotia."