Operation Megaphone Operation Megaphone was the Canadian naval operation to board an American merchant ship in the Atlantic , in order to recover $ 223 million worth of military materiel being transported back to Canada at the conclusion of operations in Kosovo . Background . At the conclusion of Operation Kinetic , the Canadian contribution to a NATO peacekeeping force in Kosovo and Macedonia , the Department of National Defence contracted SDV Logistics Canada Ltd to transport military assets , including 580 vehicles , 390 sea containers of equipment and three Canadian soldiers who were escorting the cargo . SDV Logistics subcontracted Andromeda Navigation Co . of Montreal , which chartered a St Vincent - flagged ship , GTS " Katie " ( owned by Annapolis , Maryland - based Third Ocean Marine Navigation Company ) , to move the cargo . The vessel was scheduled to leave Greece on 27 June 2000 and was to arrive in Canada on 15 July . Three Canadian military personnel were also on board the ship to escort the cargo , which included five armoured vehicles , rifles , ammunition , and communications equipment . Prior to leaving Greece , three crew members had complained to authorities there , and the ship was restrained . Though it was not clear why the crew members complained , the ship was allowed to sail on 28 June after posting a US $ 30 , 000 bond . During the voyage , a dispute between the various contracting parties arose over payments due , and Third Ocean claimed that $ 288 , 000 remained outstanding from Andromeda . As a result of the dispute , Third Ocean ordered the Russian captain of the " Katie " , Vitaly Khlebnikov , not to enter Canadian waters . Boarding . Negotiations continued between the Canadian government and the shippers , however an ultimatum was given and the three contractors failed to reach an agreement by a certain deadline , according to Art Eggleton , then the Minister of National Defence . A diplomatic note was sent to the government of St Vincent and the Grenadines , where the ship was registered , who authorized Canadians to board the vessel . On 30 July , the destroyer HMCS Athabaskan received orders to close with the " Katie " about 225 kilometres off Newfoundland , in international waters , and maintain visual contact with her . The following day , the frigate HMCS Montreal joined Athabaskan . At 1 : 45 pm on 3 August , fourteen sailors boarded " Katie " in a helicopter - borne assault from a Sea King , led by Captain Drew Robertson , during which the crew of the " Katie " offered no resistance . Captain Khlebnikov would later complain the boarding of the ship was " dangerous " and described the boarding as an " attack " , although Captain Robertson had observed that the " Katie " began erratic , evasive manoeuvering after being warned of the imminent boarding . Defence Minister Eggleton described the action as " fully within the bounds of international law . " Aftermath . The " Katie " arrived in Becancourt , Quebec , on 6 August under the control of the Canadian boarding party . Some of the cargo , including explosives , were removed at Becancourt , before the ship was brought further up the St Lawrence River to Montreal where the armoured and other military vehicles were unloaded . Third Ocean filed an action " in rem " against the Canadian government , who owned the freight , on 27 July 2000 , in the Federal Court of Canada , including a warrant for arrest of the freight . The matter was heard on 18 September , after the ship had already been seized by the Canadian navy . The court quashed the warrant and dismissed the action , on the basis of the immunity of the Crown , under the " Crown Liability and Proceedings Act " . The Canadian Navy contracted the " Katie " - and routinely contracts cargo ships - because it has no sea transport capability . The Canadian Forces have since then acquired four CC - 177 Globemaster III strategic airlift cargo aircraft , each capable of carrying a payload of up to 72 , 000 kg , which were delivered in 2007 . In 2010 , shipbuilding was identified as a key procurement priority by the Canadian Forces , outlined in its " Canada First Defence Strategy " .