Ballistic
10-07-2004, 05:45 AM
Go-ahead to $6bn navy ship project
Patrick Walters, National security editor
October 04, 2004
THE Howard Government will today commit to building all three of the navy's new air warfare destroyers in Australia.
The $6 billion project will be the biggest naval construction program since the 10 Anzac frigates, built by Tenix in Melbourne's Williamstown dockyard, were completed last year.
The decision to go ahead with the local construction of the three 6000-tonne high-technology ships represents a major vote of confidence in the Australian defence industry.
Defence Minister Robert Hill's announcement will put an end to speculation that the new destroyers could be built in an overseas shipyard amid growing concerns about a future cost blowout in the defence capital equipment budget.
Tenix, together with the Adelaide-based submarine builder, the wholly government owned ASC, are expected to compete for the prize of prime contractors for the construction of the vessels with a decision on the winner expected early next year.
Adelaide is favoured as the main construction site with ASC tomorrow announcing a rebranding of the company as part of a long-term strategy to become Australia's leading naval shipbuilder. Mr Howard is due to attend the rebranding tomorrow night, bolstering the company's bid to win the contract.
The Government has delayed the planned sale of ASC until at least 2006 to allow the company to bid for major naval construction projects.
But ASC has been instructed by the Government not to team with strategic partners during the tender competition in order not to reduce competition for the AWD build.
The Government is expected to release a request for proposals for the build phase soon after next week's election, with a decision on the winning design due by early 2005.
Together with the planned $3 billion build of two amphibious ships for the navy, the AWD build represents one of the biggest ever challenges for Australia's defence industry.
There are three foreign designers competing for the right to design the destroyers, which will form the backbone of the navy's fighting arm and are due to enter service from 2013.
They are the US firm Gibbs and Cox with a modified version of the US navy's Arleigh Burke destroyer, the Spanish firm Izar with their F100 ship and the German Blohm and Voss F124.
Two months ago the Government announced that the US Aegis air warfare system had been selected as the combat system for the destroyers.
The air warfare destroyers will be by far the most sophisticated and capable warships in the RAN's order of battle, with the Aegis system providing defence against hostile aircraft and missiles at a range of more than 150km.
Patrick Walters, National security editor
October 04, 2004
THE Howard Government will today commit to building all three of the navy's new air warfare destroyers in Australia.
The $6 billion project will be the biggest naval construction program since the 10 Anzac frigates, built by Tenix in Melbourne's Williamstown dockyard, were completed last year.
The decision to go ahead with the local construction of the three 6000-tonne high-technology ships represents a major vote of confidence in the Australian defence industry.
Defence Minister Robert Hill's announcement will put an end to speculation that the new destroyers could be built in an overseas shipyard amid growing concerns about a future cost blowout in the defence capital equipment budget.
Tenix, together with the Adelaide-based submarine builder, the wholly government owned ASC, are expected to compete for the prize of prime contractors for the construction of the vessels with a decision on the winner expected early next year.
Adelaide is favoured as the main construction site with ASC tomorrow announcing a rebranding of the company as part of a long-term strategy to become Australia's leading naval shipbuilder. Mr Howard is due to attend the rebranding tomorrow night, bolstering the company's bid to win the contract.
The Government has delayed the planned sale of ASC until at least 2006 to allow the company to bid for major naval construction projects.
But ASC has been instructed by the Government not to team with strategic partners during the tender competition in order not to reduce competition for the AWD build.
The Government is expected to release a request for proposals for the build phase soon after next week's election, with a decision on the winning design due by early 2005.
Together with the planned $3 billion build of two amphibious ships for the navy, the AWD build represents one of the biggest ever challenges for Australia's defence industry.
There are three foreign designers competing for the right to design the destroyers, which will form the backbone of the navy's fighting arm and are due to enter service from 2013.
They are the US firm Gibbs and Cox with a modified version of the US navy's Arleigh Burke destroyer, the Spanish firm Izar with their F100 ship and the German Blohm and Voss F124.
Two months ago the Government announced that the US Aegis air warfare system had been selected as the combat system for the destroyers.
The air warfare destroyers will be by far the most sophisticated and capable warships in the RAN's order of battle, with the Aegis system providing defence against hostile aircraft and missiles at a range of more than 150km.