$30 Billion Nuclear Submarine Yard Planned for Australia
The Australian federal government has committed to a monumental investment of at least $30 billion to establish a construction yard dedicated to building nuclear submarines under the AUKUS agreement. Announced on Sunday, the government has allocated an initial $3.9 billion as a down payment for the Submarine Construction Yard, which will be located in Osborne, a suburb of northern Adelaide. This ambitious project aims to generate approximately 10,000 jobs in design and construction, along with the creation of up to 1,000 apprenticeships annually at an on-site training facility.
Massive Infrastructure Investment and Job Creation
The scale of the planned construction yard is staggering, with enough steel required to build 17 Eiffel Towers and 710,000 cubic meters of structural concrete needed for the 420-meter-long fabrication hall. Prime Minister Anthony Albanese emphasized that the initial $3.9 billion investment is just a fraction of the total $30 billion cost associated with the yard’s construction. He stated, “This infrastructure alone… is something that will set our economy up well and truly for the next decade and beyond.”
Despite recent uncertainties surrounding the AUKUS agreement, including a review announced by the United States, Albanese reassured the public that the shipyard will play a crucial role in the interests of Australia, the US, and the UK. He expressed confidence that the facility would indeed support the construction of AUKUS vessels, dismissing concerns about its viability.
The staggering price tag for the yard comes from estimates provided by Australian Naval Infrastructure, the company selected by the government to oversee the project. In addition to construction, the new facility will also be equipped for testing and commissioning submarines. However, officials have not yet confirmed how long the construction will take or whether the estimated cost might increase.
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Boosting South Australia’s Economy
The announcement of this significant infrastructure project is expected to have a transformative impact on South Australia’s economy. The region has already seen a boom in the defense industry, highlighted by the recent opening of the country’s first missile factory in Port Wakefield. The Osborne site currently houses facilities for the Collins-class and Hunter-class submarines, and the new yard is projected to require around 4,000 workers for its construction, a stark contrast to the 1,200 jobs that existed at the now-closed Holden plant.
South Australian Premier Peter Malinauskas remarked on the scale of skilled job opportunities this project will bring, stating, “It is hard for South Australians to genuinely comprehend the amount of high-paid skilled work that has come our way.” The timing of this announcement is particularly strategic for the premier, as he approaches the state election next month, where recent polls show Labor leading the opposition significantly.
