Australia commits AUD 12 billion to kick off Henderson shipbuilding plan

In a significant move to bolster its naval capabilities, the Albanese administration has announced an investment of AUD 12 billion (approximately USD 8 billion) towards the development of a Defence Precinct at Henderson, Western Australia. This funding aims to enhance continuous naval shipbuilding and support AUKUS capabilities. The initiative is expected to create around 10,000 direct jobs over the next two decades, benefiting both large and small businesses in the region.

Investment Details and Future Plans

The announcement, made by Australian defense ministers, marks a crucial step in the expansion of the Henderson Shipyard, which was first proposed in October 2024. The government emphasized that this initial investment is a vital down payment for the Defence Precinct, with independent planning suggesting that total investment could reach AUD 25 billion over the next decade. This funding will not only provide certainty to industry partners involved in constructing the necessary infrastructure but will also initiate early works while more detailed planning and design are completed.

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The investment will facilitate the construction of various naval assets, including surface vessels for the Australian Defence Force. The first projects will focus on the Army’s Landing Craft and, pending successful consolidation, the domestic production of Australia’s future general-purpose frigates. Additionally, the funding will support facilities for maintaining Australia’s surface combatant vessels and develop contingency docking capabilities for the future conventionally-armed, nuclear-powered submarine fleet, which is expected to be operational by the early 2030s.

Moreover, the commitment includes provisions for depot-level maintenance, such as graving docks. These advancements are crucial for Australia’s AUKUS pathway, ensuring the country is prepared to receive its first Virginia-class submarine in the early 2030s. This latest funding builds on an earlier commitment of AUD 127 million aimed at progressing the planning for the Defence Precinct. Future funding requirements will be assessed once detailed design works are finalized, including potential private financing models.