Australian replenishment ships to be built overseas

The first set of key initiatives in the Government’s long-term strategic naval plan has been announced by the Minister for Defence, Senator David Johnston.

Senator Johnston said that through the plan the Navy will be properly equipped in the years ahead and Australian industry will have the long-term strategic direction that has been lacking for the last six years.

He said that replenishment vessels are essential to support sustained naval deployments and said that the Navy’s current replenishment ship HMAS Success is in urgent need of replacement.

In light of the urgent need to forestall a capability gap in this crucial area; the current low productivity of shipbuilders involved in the AWD program; and value for money considerations, the Government has given First Pass approval for Defence to conduct a limited competitive tender process between Navantia of Spain and Daewoo Shipbuilding and Marine Engineering (DSME) of South Korea for the construction of two replacement replenishment vessels based on existing designs.

“Navy is in urgent need of large support vessels that we assess are beyond the capacity of Australia to produce competitively at this stage. In this instance it would not serve anyone if we were to provide a challenge to industry that was beyond its capabilities,” Senator Johnston said.

“Competition between these two experienced shipbuilders is the best way to ensure delivery of capable, cost effective vessels in the time frame required.”

The Government however has agreed to bring forward preliminary design work to ensure Australia maintains the necessary capabilities to retain the option of building the future frigate in Australia.

Senator Johnston said the Government has committed $78.2 million to bring forward preliminary engineering and design work necessary to keep open the option of building the future frigate in Australia.

Senator Johnston said further decisions on the future frigate would be taken in the context of the 2015 Defence White Paper.

The Government has brought forward an open competition with Australian industry to construct more than 20 replacement Pacific Patrol Boats.

Senator Johnston said as part of its 2015 Defence White Paper the Government would announce further steps in its Naval Capability Plan.

He said this plan would provide for an enterprise level shipbuilding plan that would bring together navy capability requirements, available resources, and recommendations around Australian industry requirements.