News Review: HMAS Success double hull conversion to be done in Singapore | ADM Nov 2010

Defence has selected Singapore shipyard ST Marine as the preferred tenderer to convert the RAN tanker HMAS Success to be double hulled.

ST Marine represented the best value for money and the shortest time out of service, said an official announcement.

The work will be carried out in Singapore, where the ship has a scheduled visit while on deployment in Asia and involves the double hulling of the HMAS Success to meet International Maritime Organisation standards for environmental protection against oil spills.

ST Marine’s tender came in under budget.

As a result, funds saved on this project will be re-directed towards the priority repair and maintenance work required on HMAS Kanimbla and HMAS Manoora, for which a precautionary Operational Pause was recently initiated by the Chief of Navy.

This work will occur concurrently at Garden Island, Sydney.

Overseas companies were allowed to bid for the work on HMAS Success as this is a one-off project – work of this type will never again be carried out in Australia; and no Australian company had ever undertaken work of this type.

However, shadow defence minister Senator David Johnston has accused newly appointed defence materiel minister Jason Clare off failing his first test.

“His short sighted decision will result in the loss of 200 jobs in Sydney because he signed off on a multi million dollar contract to a Singapore-based company that uses cheap labour to undercut Australian companies for Defence work,” Johnston said.

“What the new minister fails to grasp is that this important facility and more than 200 highly skilled workers will be lost as a result of this contract going overseas and that is an issue of national security.”

He predicted contract costs will still blow out, negating any costs savings for Defence by awarding the contract to an overseas bidder.

“If we keep sending this kind of work overseas to save a few dollars then we lose … our ability to look after our own fleet independently in times of crisis and that is of major concern,” he said.

Defence has stated, however, that the on-going repair and maintenance of Navy ships will stay in Australia.

This includes the regular and on-going repair and maintenance of HMAS Success.

“This year Defence will spend approximately $79 million on ship repair and maintenance in the Sydney region and has budgeted to spend $81 million next year on ship repair and maintenance in the Sydney region,” according to a Defence statement.

Next year Defence will also issue tenders for five year contracts for the repair and maintenance of Navy ships at Garden Island.

This work will all occur in Australia and is worth about half a billion dollars over the five years, says Defence.