Should Medium Naval Powers Like Chile Have Their Own Shipbuilding Capacity?

The Chilean Navy faces critical decisions regarding its capabilities and future acquisitions. Political perspectives vary significantly, influencing how naval resources are allocated. Right-wing parties prioritize cost-efficiency in shipbuilding, while left and center-left factions emphasize local industrialization and job creation. This divergence complicates the navy’s efforts to modernize and expand its fleet, as the fate of shipbuilding policies often rests with Congress and the executive branch.

Local vs. Foreign Shipbuilding: A Pragmatic Approach

The Chilean Navy operates under a pragmatic philosophy: it requires ships to function effectively. While local construction is preferred for maintaining shipyard capabilities, foreign acquisitions are also acceptable. This flexibility allows the navy to adapt to changing circumstances and resource availability. A notable example of this approach occurred in 2020 when the navy acquired two used Adelaide-class frigates from Australia. These vessels were in excellent condition and complemented the ongoing construction of the Almirante Viel, a state-of-the-art 10,000-ton icebreaker built locally. This project showcases Chile’s potential in domestic shipbuilding.

Chile’s President Visits South Pole to Mark Start of Research Voyage

Currently, the navy is focusing on the development of four 8,000-ton amphibious multipurpose ships. However, discussions are emerging regarding the renovation of existing Squadron ships and the submarine fleet. This modernization effort could require an investment of $5 to $8 billion over several years. The Chilean Navy has also received the design for Babcock’s Arrowhead 140 frigate, but competitive bidding for this contract may not commence until 2026. As naval expenditures are always scrutinized, Chileans should prepare for an in-depth discussion about the future of their navy and the associated costs.