Province buys Lunenburg Foundry Shipyard to protect a 'key piece of infrastructure'

The Nova Scotia government is entering into an agreement to buy the Lunenburg Foundry Shipyard.

The historic site on the Lunenburg waterfront has not operated since November of last year. Economic Development Minister Susan Corkum-Greek said it was vital to preserve the shipyard for current and future opportunities related to the fishery, ocean technology, offshore wind energy development and other vessel maintenance.

"This is such a key piece of infrastructure," the minister said in an interview from her constituency office in Lunenburg.

"The shipyard and the marine railway at the shipyard is a critical piece of infrastructure that specifically allows vessels to be hauled out of the water for any kind of maintenance repair that takes place below the waterline."

The minister said the government remains in the "due diligence" phase of the deal and terms of the sale would be released once it is complete.

"I am a Lunenburger and I'm superstitious, so I am tapping my wooden desk ever so slightly."

Jamie Myra, president of the Lunenburg Board of Trade Council, praised the government's decision, comparing it to the move by a previous government in the early 2000s to purchase buildings along the waterfront when Clearwater moved its operations to Shelburne.

Myra said preservation of the town's working waterfront is a key driver of one of the major tourism economies in the province.

"Probably the vast majority of people who come here to Lunenburg come here for that reason," he said.

Looking for a shipyard operator

A waterfront stroll in Lunenburgprovidesviews of fishing vessels coming and going, fish plants in full operation and work on ships that help contribute to the local economy.

"People come to see Lunenburg for what Lunenburg was, what it is and hopefully what it will be for many years to come," said Myra.

When the sale is complete, Corkum-Greek said the government would turn its attention to finding an operator to run the yard. The government wants to preserve the site, but it isn't interested in getting into the shipbuilding business, she said.

Corkum-Greek said she expects such a deal to happen through a lease, although a lease-to-buy scenario could also be possible. The yard needs upgrades, the cost of which would fall to the incoming operator.

"We have a facility here with a long and storied past of shipbuilding and ship maintenance work," she said.

"That's the opportunity here and we will be looking for a business or potentially businesses to move forward."

'Hugely significant'

Daniel Moreland, captain of the Picton Castle, doesn't expect that to be a problem. The key will be using a proper vetting process to land an operator with a proven track record, he said.

"There's a lot of marine industrial talent in the area," said Moreland.

"It's more than a phone call, but it won't be a search requiring years put it that way."

Moreland said the local industry has been able to get by without access to the yard for the last year, but hesaid it would begin to be problematic if that absence were to continue. He said the government's decision to preserve the site without taking it on itself is "hugely significant."

"This is, I think, a very critical step that's been taken that will be very beneficial not just to Lunenburg, but I think the surrounding region and boat building and shipbuilding."

When the shipyard reopens, Moreland expects substantial demand due to the combination of the area's reputation, dry dock capabilities and a community loaded with supporting trades required to provide necessary work on ships.

"I think it's going to be a going concern under good management. I don't have any doubts about that."

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