The Canadian Government could invest $40bn to develop a major shipbuilding industry, as part of its long-term strategy.

Under the strategy the government plans to enhance shipbuilding capacity for future employment opportunities and meet its own maritime and defence requirements.

While falling orders for vessels and new ships account for the industry’s slow growth, the government plans to explore the potential of its 151,485 miles of coastal line including the coastline of its 52,455 islands.

Over the past six years Canadian shipyards have invested more than $175m to modernise shipbuilding and repair capacity.