Aus Gov "Continuous Shipbuilding" Announced - 3 Surface Vessel Classes, Shortlists

PETE'S COMMENT

Australia's Turnbull Coalition Government has made a major announcement today which covers a continuous building program for three surface vessel classes. These are Offshore Patrol Vessels (OPVs), Future Frigates (FFs) and Pacific Patrol Boats (PPBs).

The announcement, by Prime Minister Turnbull and Defence Minister Marise Payne, is in the Media Release, of April 18, 2016, below http://www.minister.defence.gov.au/2016/04/18/prime-minister-and-minister-for-defence-continuous-naval-shipbuilding/ .

The announcement is aimed at improving the Coalition Government's chances of winning the next Federal Election, which appears very likely to occur on July 2, 2016. [P.S. it did occur on that date]

The announcement in particular is aimed at improving the Turnbull Government prospects in South Australia, which is described as a swing state, where Coalition MP and Senate positions may be lost. South Australia was promised the FF build months ago and the OPV build was also thought likely in South Australia. This helps protect the seat of the most important Government MP in South Australia who is the Industry Minister, Christopher Pyne. South Australia is heavily contested between 4 parties: the Liberals, Labor, Greens and the emerging Xenophon Team.

The other major beneficiary of the announcement is Western Australia – with the most prominent MP being the Foreign Minister (also Deputy Leader of the Liberal Party) Julie Bishop. Austal at Henderson (part of Perth) Western Australia specifically benefits. Western Australia is normally Liberal, that is pro-Coalition but Labor is significant. The shipbuilder Civmec is likely to benefit in Western Australia. Civmec also owns Forgacs shipbuilding sections interests at Tomago, NSW. The Defence Minister Marise Payne is a Senator from NSW.

Cairns in Queensland gains from PPB maintenance.

The big loser is Williamstown dockyard in Victoria, considered a Labor heartland. The Coalition has few seats in Victoria to lose, so this shipbuilding announcement doesn’t favour or even mention Victoria.

A future submarine announcement, however, may benefit Williamstown Victoria, and also South Australia and Civmec Western Australia. If any announcement on submarines is made before a July 2, 2016 election it is likely to imply but perhaps not specifically promise that all submarines will be built in Australia. There is probably insufficient time and political risk in the run-up to an Election of specifying the actual winning contender (or a shortlist of two). 

The Media Release is below http://www.minister.defence.gov.au/2016/04/18/prime-minister-and-minister-for-defence-continuous-naval-shipbuilding/   In [ brackets I have put in hotlinks to the shortlisted vessel type or range of vessels] :

"Prime Minister and Minister for Defence – Continuous Naval Shipbuilding

18 April 2016

The Turnbull Government is securing a sustainable long-term Australian naval shipbuilding industry.

Today the Government is announcing the build locations for 12 Offshore Patrol Vessels and up to 21 Pacific Patrol Boats, in addition to nine Future Frigates previously announced.

These announcements provide for two shipyards to implement the Government’s commitment to a continuous build of naval surface ships in Australia. Major warships will be built in Adelaide and minor vessels in Henderson, Western Australia.

These three projects will ensure Australia retains a sovereign capability to build and sustain its naval vessels. Together they represent close to $40 billion worth of investment in Australia’s future naval capabilities and our naval shipbuilding industry.

They will directly secure more than 2,500 jobs for decades to come. They will also generate thousands of additional jobs with suppliers.

Offshore Patrol Vessels

·       First pass approval for the Offshore Patrol Vessels, with construction to begin in Adelaide from 2018, following the completion of the Air Warfare Destroyers and transfer to Western Australia when the Future Frigate construction begins in Adelaide in 2020.  This approach ensures that jobs and skills are retained in Adelaide.

·       As part of the Competitive Evaluation Process three designers have been shortlisted; 

     -  Damen of the Netherlands, [ a choice of two 1800 models  ]

     -  Fassmer of Germany, [ offering the OPV 80 ] and 

     -  Lurssen of Germany [ offering the PV-80 ]

     to refine their designs.

·       This program is estimated to be worth more than $3 billion and will create over 400 direct jobs.

Future Frigates

·       First pass approval for the Future Frigates. Three designers

     -  BAE Systems with the Type 26 Frigate; 
        [ https://en.wikipedia.org/wiki/Global_Combat_Ship Type 26 ] 

     -  Fincantieri with the FREMM Frigate 
        [ https://en.wikipedia.org/wiki/FREMM_multipurpose_frigate ]
         and 

     -  Navantia with a redesigned F100 
         [ https://en.wikipedia.org/wiki/%C3%81lvaro_de_Baz%C3%A1n-class_frigate F100 ]

have been short-listed to refine their designs. The frigates will all be built in Adelaide, incorporating the Australian-developed CEA Phased-Array Radar.

·       The Competitive Evaluation Process is on schedule to return second pass approval in 2018, which will allow for construction to commence in Adelaide in 2020.

·       This program is estimated to be worth more than $35 billion, and will directly create over 2000 jobs.

Pacific Patrol Boats

·       Combined first and second pass approval for the replacement Pacific Patrol Boats.  Austal Ships Pty Ltd has been selected as the preferred tenderer to construct and maintain up to twenty-one replacement steel-hulled Pacific Patrol Boats in Henderson, Western Australia.

·       Subject to negotiations, this program is estimated to be worth more than $500 million and will directly create over 130 jobs.

·       Austal proposes to conduct support of the replacement Pacific Patrol Boats including deep maintenance from Cairns, Queensland. In total, through-life support and sustainment (including deep maintenance) for the Pacific Patrol Boats is valued at a further $400 million over the life of the boats.

Today’s announcements are central to the Government’s comprehensive Naval Shipbuilding Plan. These three significant ship builds will deliver the necessary infrastructure requirements across the Adelaide and Henderson shipyards. They will create new jobs, develop necessary skills and broaden cooperation between industry and government.

The Turnbull Government is committed to maximising the opportunities for our Australian Defence industry to participate in these shipbuilding programs. Through the Defence Industry Policy Statement the Turnbull Government will reset the relationship between Defence and industry, driving jobs and innovation which will have spillover effects into the wider economy.  In particular, the new Centre for Defence Industry Capability will help small to medium enterprises identify opportunities to join the supply chains necessary to deliver these ambitious naval shipbuilding projects.

After six years of Labor inaction in which more than $18 billion was ripped from the Defence budget, the Turnbull Government is getting on with the job of securing our long-term national security and economic prosperity. The Government’s historic continuous build program will ensure the Navy receives its future capability requirements while delivering the certainty that shipbuilders need."  

ENDS

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A good ASPI Strategist commentary on the coming congestion in Adelaide of building so many ship/submarine types, sustainment and upgrades - is Mark Thomson's "Building the future Navy: the OPVs" of 28 April, 2016.

Pete