Australia has announced a A$12 bn investment to develop the Henderson Defence Precinct for AUKUS and continuous shipbuilding.
Press release by Australan Defence, text follows (link):
“The Albanese Government will provide $12 billion towards delivering a Defence Precinct at Henderson to deliver continuous naval shipbuilding and AUKUS in Western Australia.
Alongside the Albanese Government’s record investments across shipbuilding and AUKUS in the West, these commitments will support 10,000 direct jobs over the next two decades as well as providing opportunities for small and medium sized businesses across the state.
Today’s announcement of new money is a significant down payment for the Defence Precinct, with early independent planning and advice indicating the Henderson Precinct will require investment in the order of $25 billion over the decade.
This early commitment of funding will provide certainty to industry who will partner on the construction of infrastructure and facilities and will also kick-start early works whilst more detailed planning and design work for Henderson are finalised.
This initial investment will underpin the delivery of:
The construction of surface vessels for the Australian Defence Force, starting with Army’s Landing Craft and, pending successful consolidation, the domestic build element of Australia’s future general purpose frigates;
Facilities to support the sustainment of Australia’s surface combatant vessels;
Contingency docking capabilities for Australia’s future conventionally-armed, nuclear powered submarine fleet from the early 2030s; and
Depot-level maintenance, including graving docks.
Progressing these capabilities will be critical for Australia’s delivery of the AUKUS pathway and ensure Australia is ready to receive its first Virginia class submarine in the early 2030s.
This commitment builds on the government’s initial $127 million commitment to progress planning for the Defence Precinct.
Additional funding requirements will be considered once detailed design works are finalised and as delivery models, including the opportunity for private financing models, are determined.
In partnership with the Western Australian Government, and in line with the Commonwealth State Cooperation Agreement, we will continue to work together on transition arrangements and certainty for current and future users of Henderson.
Quotes attributable to the Prime Minister Anthony Albanese:
“Today’s investment is another way we are delivering record defence funding to bolster Australia’s capabilities.
“This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry.
“There is no greater honour than serving our country in our nation’s uniform and my Government is dedicated to investing in the defence capabilities our nation requires.”
Quotes attributable to the Deputy Prime Minister Richard Marles:
“The Albanese Government continues to increase defence spending to record levels to deliver the capabilities Australia needs.
“Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway.
“In less than a year from our announcement to establish the Defence Precinct at Henderson, today we are announcing additional funding to start delivering on key programs for the Australian Defence Force.”
Quotes attributable to the Minister for Defence Industry, Pat Conroy:
“This investment is part of the Albanese Government’s commitment to building our sovereign defence industry and supporting a future made in Australia.
“Western Australia already plays an important role in the delivery of capabilities for the ADF, and the consolidation of the Henderson precinct will be a significant boost for defence industry in the West.
“It will support around 10,000 highly skilled, well paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.””
[Click to expand] Part of the future Henderson Defence Precinct in Western Australia. (Australian Department of Defence)
Naval News comments:
Media and observer reactions understandably emphasised the AUKUS-aspect of the Henderson Defence Precinct investment under the spectre of the ongoing review of the agreement by the American government. However, the overall spending will also have to address a very considerable need by the Henderson facilities for expansion in order to absorb significant naval shipbuilding planned by the Albanese government.
At present Henderson-based shipbuilder Austal is already in the early stages of executing two programs for amphibious landing ships. Furthermore, as the press release notes, construction of as many as eight out of 11 general purpose frigates under the SEA 3000 effort will also occur at Henderson. Finally, in line with this prospective considerable expansion of the RAN surface fleet, additional infrastructure for basing and maintenance is going to absorb significant spending.
The primary challenge for Australia is timely spending of at least A$ 25 billion expanding Henderson, including for AUKUS, as the statement also notes. A first test of Australian industrial capabilities to support a complex logistics operation will the forthcoming Submarine Rotational Force – West (SRF-West) in 2027. SRF-West will need to provide ongoing maintenance support for one Royal Navy SSN and up to four US Navy SSN rotating through HMAS Stirling, adjacent to the Henderson Defence Precinct in Western Australia.