VIEWPOINT: Sovereign shipbuilding matters now more than ever

The Commonwealth Government has appointed Austal Defence Australia as the strategic shipbuilder at Henderson, marking a significant step towards enhancing Australia’s sovereign naval capabilities. This decision comes as part of a new Strategic Shipbuilding Agreement, which will see Austal take on key responsibilities in the Naval Shipbuilding and Sustainment Plan over the next decade. The initiative aims to bolster local production of essential naval vessels, including Landing Craft Medium and Heavy, while laying the groundwork for future projects involving General-Purpose Frigates and optionally crewed vessels.

Austal’s Role in Strengthening Sovereign Capability

The appointment of Austal as Prime Contractor is a clear endorsement of the need for sovereign capability in a world marked by uncertainty. The vessels produced under this agreement are not just military assets; they represent a commitment to innovation, mobility, and self-reliance. By constructing these ships in Western Australia, the government aims to reinforce the industrial base necessary for supporting the next generation of naval capabilities. This move is expected to provide critical maritime infrastructure for the Australian Defence Force, enhancing the nation’s ability to protect its interests.

Austal has a long-standing history in the region, having delivered over 100 defence and government vessels from its operations in Western Australia. The company has established a robust supply chain that includes partnerships with both large corporations and local small to medium enterprises. This network is crucial for maintaining a resilient industrial capacity, which cannot be developed overnight. It requires years of investment in infrastructure, skilled personnel, and systems. The new agreement ensures that Austal can retain and grow its workforce and intellectual capital, which have been cultivated over 35 years of shipbuilding experience.

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With a proven track record, including the delivery of 19 Cape Class Patrol Boats and 21 Guardian Class Pacific Patrol Boats, Austal is well-positioned to continue its role in Australian defence. The company is eager to expand its capabilities from Patrol Vessels to larger projects like General Purpose Frigates, working closely with the Commonwealth Government to foster a reliable ecosystem of industry partners in Henderson, Western Australia.

Addressing the Need for Sovereign Control

The importance of maintaining sovereign control over strategic assets has become increasingly evident in recent years, particularly in the defence sector. Events such as pandemics and geopolitical conflicts have highlighted the risks associated with dependence on foreign production and ownership. By ensuring control over the design, construction, and maintenance of naval vessels, Australia can respond swiftly to changing strategic needs without relying on overseas suppliers.

The lessons learned from the management of Darwin Port, a strategically significant asset under foreign control, underscore the necessity of keeping critical assets within sovereign hands. The government’s decision to appoint Austal reflects a commitment to avoiding past mistakes in defence shipbuilding and ensuring that strategic capabilities remain domestically managed.

Austal’s unique position as the only Australian shipbuilder operating at scale both domestically and internationally enhances its ability to support national defence objectives. The company has successfully delivered numerous vessels to the United States Navy and is currently involved in critical projects, including modules for Virginia-class nuclear-powered submarines as part of the AUKUS submarine pathway. This international experience brings valuable expertise back to Australia, reinforcing the local team’s capabilities.

The 2024 Naval Shipbuilding and Sustainment Plan outlines a comprehensive strategy, with an investment of AU $159 billion aimed at creating a resilient maritime industrial base. This plan includes the construction of 55 new vessels over the next decade, necessitating a skilled workforce across Australia. Austal is prepared to lead this initiative in Western Australia, leveraging its trained and experienced workforce to execute large-scale projects effectively.

The Strategic Shipbuilding Agreement not only secures the future of naval construction in Australia but also sets the stage for innovative advancements in maritime technology and capability. As the industry evolves, Austal is ready to meet the challenges of modern shipbuilding, ensuring that Australia remains at the forefront of naval defence.