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Australia to build U.S. $65 billion naval fleet


Australia is embarking on a U.S. $65 billion shipbuilding package to construct new frigates and patrol boats locally, with a decision on an international supplier for replacement submarines to be made “in coming months.”

The “continuous shipbuilding” proposal, which involves the replacement of frigates, patrol boats and submarines during two decades, is expected by the government to keep up to 2,500 jobs in the sector.

“Previous Australian governments have announced that individual ships or classes of ships will be built here in Australia,” Prime Minister Tony Abbott said. “What we are announcing today is basically a fleet build here in Australia.”

Abbott would not give new details about the ongoing search for an international supplier to design and build the nation’s next generation of submarines to replace its aging diesel and electric-powered Collins Class fleet, which are set to be retired from about 2026 onward.

France, Germany and Japan are in the running for the contract, which has been touted as Australia’s biggest-ever defense procurement program.

The bidding process, however, has been a source of contention in Australia amid concerns the domestic shipbuilding industry could be fatally hurt if Canberra chooses to buy off-the-shelf submarines internationally.

“What we have asked the various potential partners to give us is a price for a domestic build, a hybrid build and offshore build,” Abbott said.

“Based on what comes back to us in the coming months, we’ll make a decision.”

The shipbuilding package will bring forward the “Future Frigate” program to replace the current Australian and New Zealand Army Corps class frigates to 2020. The construction of offshore patrol vessels to replace the Armidale class has also been moved forward to 2018.

Defence Minister Kevin Andrews said the establishment of a “continuous shipbuild” domestically reflected the view that Australia’s future naval capability “is at the centerpiece of our strategic concerns.”

The frigates would be the navy’s workhorses over the next few decades, added the Navy’s Vice Admiral Tim Barrett.

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