Newdock eyes $300M expansion in wake of geopolitical shakeup

A St. John's ship repair company is considering a massive modernization that would cost an estimated $300 million and enable the company to take on bigger vessels.

Sean Leet, managing director of Newdock, told CBC News the redevelopment plan centres around the replacement of the graving dock in St. John's harbour, a new ship lift system and the modernization of the company's facilities.

“We're at a point now where ships are getting larger and wider and the graving dock is limited from the perspective of the width of the ships that it can accommodate,” Leet said.

The plans are still being formulated, but Leet said he hopes a final investment decision will be made by the company’s board in the spring. If it’s approved, he said the work should take a little over two years.

The ship lift system is important for Newdock’s business, Leet said. A decade ago, the company had no problem accommodating its clients, he said, but as ships have gotten larger — too large for the current system to handle — the company has missed out on work.

“For instance, if you look at the Horizon Maritime fleet, the Horizon Arctic is a 23-metre beam ship and it had to go to Denmark to get dry  docked this year,” Leet said.

“We'd like to be able to service all of those customers at our facility. And we have an obligation to the customers to be able to do that into the future.”

Leet said Canadian Coast Guard vessels are also increasing in size, and if Newdock moves forward with the new ship lift system, it will be able to handle those larger vessels, as well as more defence work.

Leet said the strategy is about enhancing the asset for Newdock's customers, which includes the federal government.

The expansion proposal comes during a push to support Canada’s sovereignty, Arctic sovereignty, and a focus on building more vessels in Newfoundland and Labrador.

“Those have exhilarated our thinking and planning, and ultimately shifted our thinking and planning as to what this facility can be and how we can ensure that we're doing our part to help the federal government with the significant challenges that we have in front of us,” said Leet.

In 2020, when the company was under previous ownership, Leet said it was already looking at modernization, but the COVID-19 pandemic caused business disruptions.

The new ship lift system can handle 28,000 tons and take multiple vessels at the same time. The current system can only handle 4,000 tons.

“This will be the largest ship lift system in the Western Hemisphere once it's installed,” said Leet.

The modernization plans require Newdock to hire an additional 220 workers in the trades, as well as dozens of staff and management positions, which would more than double its workforce.

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