A Strategic Case for Integrating the Canadian Coast Guard Under the Royal Canadian Navy
Business Preamble: Institutional Growth Through Strategic Exit
In the business world, a company’s “exit”—whether through an acquisition, merger, or public offering—often marks the beginning of a new chapter. It’s a moment to celebrate the journey so far and to embrace the opportunity for greater scale, resources, and impact under a larger, and at times, more capable organization. The same logic can be applied to our national institutions: for this example, when the Canadian Coast Guard (CCG) “exits” to the Royal Canadian Navy (RCN) under the Department of National Defence (DND), it’s not just a bureaucratic theory - it’s a strategic evolution. This integration would allow the Coast Guard to amplify its mission, leverage new capabilities, and contribute to national security on a much larger scale, much like a successful business joining forces with a global leader to unlock new potential.
As Canada faces an increasingly complex global security environment, ranging from Arctic sovereignty disputes to shifting strategic alliances, cyber threats, and peer-state naval competition, the need for a more agile, efficient, and robust maritime force has never been more apparent, particularly under international pressure. One bold step to enhance our national readiness is the integration of the CCG under the command structure of the RCN. This move isn’t just about symbolism, narrative, or bureaucracy—it’s about aligning strategy with capability and maximizing every dollar of defense spending.
For background, different models exist for where nations position their Coast Guards – for example, in the US, it is a distinct branch of the armed forces, in Norway the Coast Guard is part of their Navy. The Canadian Coast Guard’s authority stems from the Canadian Coast Guard Act, which established the CCG as a civilian maritime service under the Department of Fisheries and Oceans (DFO), whereas the Royal Canadian Navy’s authority stems from the National Defence Act. Notwithstanding the potential legislative changes and logistical challenges to accomplish this fundamental change to protecting Canadian and global waters, the benefits of the idea are detailed below.
A Near-Immediate Bump in Canadian Military Spending
With the federal government’s recent announcements of a historic $73 billion investment in defense over the next 20 years, the time is now for structural reforms. Rather than creating parallel tracks for vessel procurement, operations, and training, a unified naval command can streamline budget processes, prevent duplication, and ensure taxpayer dollars are directed toward strategic outcomes. Integrating CCG capabilities into the Navy’s long-term force structure could centralize procurement planning—reducing delivery timelines, increasing interoperability, and leveraging economies of scale.
If Canada were to restructure the Coast Guard under the Department of National Defence (DND), the DND budget would increase by the Coast Guard’s annual budget. This would represent a 7.8% increase in the defense budget, and a bring Canada’s defence spending from 1.31% to 1.41% of GDP1:
DND budget (2024–25): $30,584,803,954 CAD2
Canadian Coast Guard budget (2024–25): $2,392,000,000 CAD3
“New” DND budget: $30,584,803,954 + $2,392,000,000 = $32,976,803,954 CAD
As of early 2024, the Royal Canadian Navy (RCN) operates a fleet of 68 marine vessels. This includes: frigates, coastal defence vessels, submarines, Arctic and offshore patrol vessels, patrol vessels, and several auxiliary and support vessels4, but no icebreakers (yet).
As of October 2022, the CCG manages and operates a fleet of 123 vessels, including two icebreakers. In addition to its marine fleet, the CCG also operates a small number of air assets. This fleet comprises 22 helicopters, primarily used for ice reconnaissance, personnel transport, and support of maritime operations5.
Further to the need for this kind of alignment, the CCG operates its own integrated air assets, whereas the RCN does not. Instead, the Royal Canadian Air Force (RCAF) provides air support to the Navy, serving as the command line for all naval air operations. Integrating these structures presents an opportunity to better align and utilize air resources across Canada’s maritime and naval forces, and this is something for the RCAF and RCN to review and possibly adopt.
A True North Force Multiplier
Canada’s Coast Guard operates a fleet of highly capable vessels, which is manned by skilled professionals whose core expertise is search and rescue, icebreaking, and environmental response. Under a unified command, the operational strengths of both the RCN and CCG personnel and assets could be leveraged, creating a force that can scale up in times of crisis, whether domestic or international. Coast Guard experience and reach give new latitude and command opportunities, while Navy personnel bring combat and expeditionary specialization. This synergy strengthens Canada’s ability to respond to evolving and complex maritime threats.
The Coast Guard has year-round presence in three Northern communities. Having established their Arctic Region offices and their Arctic Strategy, they are patrolling, undertaking joint exercises and providing the essential services for Arctic marine response. The activities and strategy that the Coast Guard undertakes need not change with the re-housing of the agency, but can simply be added to Navy activities as part of ongoing business and building the presence in the North.
Importantly, integration would also address the universality of service, ensuring that all personnel, regardless of their initial background —whether uniformed or civilian —are prepared to serve in a wide range of roles as operational needs dictate. This is somewhat consistent with the current utilization of civilian roles throughout DND, where civilians already fill essential positions, including some operational functions. It’s been done before. For example, civilians serve as intelligence analysts, logistics coordinators, cyber security specialists, research scientists at Defence Research and Development Canada (DRDC)6 , and air traffic controllers on military bases. Additionally, civilian employees are often embedded within operational planning teams, support the maintenance and operation of military equipment, and provide critical expertise in areas such as procurement, engineering, and communications. These roles demonstrate the vital contribution of civilians to both the day-to-day and operational effectiveness of the Canadian Armed Forces.
By adopting a more universal approach to service, the unified organization could maximize flexibility and operational effectiveness, drawing on the full spectrum of talent and expertise across both civilian and uniformed members. While there could be concern and anxiety from the uniformed and civilian members, change is the only constant and addressing current and future needs may require some discomfort to achieve the mission – something that can be addresses and managed with a coordinated strategic exit. Through an integration between the Coast Guard and Navy, a new wave of recruitment can be triggered. A merged organization can offer broader career tracks—from humanitarian missions and search and rescue to combat and national defence, making maritime service more attractive to the next generation of Canadians.
By viewing the Coast Guard’s integration into the RNC as a strategic “exit” into a new, more impactful structure, we can celebrate the expanded opportunities, resources, and national security benefits that come from joining forces under the CAF umbrella. Now is the time for Canada to embrace bold reform and ensure our maritime security and sovereignty for generations to come.
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Arjun Grewal is the CEO of Ventus Respiratory Technologies and serves as an Industry contributor to the Canadian Institute of Arctic Security (CIAS). With a distinguished 20-year career in the Canadian Armed Forces, including 13 years with Canadian Special Operations Forces Command, Arjun has extensive experience in global operations, leadership, enterprise business, and innovation. He has held senior roles in both technology and defence sectors and is recognized for his commitment to advancing National security, technological innovation, and cross-sector collaboration in Canada’s North.
1 - 2023-24 defence spend was 1.31%, with a 7.8% increase to the Navy budget, the GDP contribution grows to 1.41%.
2 - Canada Spends: https://canadaspends.com/en/spending/national-defence
3 - Canadian Coast Guard Integrated Business and Human Resource Plan 2024 to 2025 through 2026 to 2027: https://www.ccg-gcc.gc.ca/publications/corporation-information-organisation/ibhrp-piarh/2024-2027/index-eng.html
4 - Royal Canadian Navy: https://www.canada.ca/en/navy/corporate/who-we-are.html
5 - Canadian Coast Guard: https://www.ccg-gcc.gc.ca/fleet-flotte/index-eng.html
6 - Defence Research and Development Canada: https://www.canada.ca/en/defence-research-development.html