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To View a PDF Version of the Full Special Report DEFENCE SPECIAL REPORT WA defence sector aims to build on contract wins FEATURE Local businesses are already winning ongoing defence work as WA positions itself as a sustainment hub. ORE than 210 Western managed interstate will pro- Naval Ship Management is The next big sustainment con- Australian companies vide opportunities for WA a joint venture between Bab- tract opportunities would be for Mare pursuing oppor- contractors. cock and UGL, and based in the Offshore Patrol Vessels, and tunities with French contractor They are the build of the Henderson, although most of then the Hunter Class frigates. Naval Group for its $50 billion Hunter Class Frigates, which will the Canberra Class work will “The sustainment of the Off- Attack Class submarine con- be assembled in Adelaide by BAE happen at the company’s Sydney shore Patrol Vessels is the next Matt Mckenzie struction program. Systems, and the Land 400 Vehi- operation. major program that is on the [email protected] Those businesses, Naval cle Combat System, which is to The business already has a big horizon,” Mr Smith said. @Matt_Mckenzie_ Group said, had either engaged be manufactured by Rheinmetall role as part of the Warship Asset “The Commonwealth will in expression of interest pro- Defence Australia in Queensland. Management Alliance with BAE soon be looking for a sustain- Key takeaways cesses or requested information That’s on top of the one big Systems, the Commonwealth ment solution as they seek to on potential work. construction project that will government and SAAB Aus- prepare for transition from • WA businesses No WA suppliers have yet be undertaken in WA – the $2.8 tralia, which are responsible for acquisition, and as is the current positioning for been contracted, Business News billion Offshore Patrol Vessels. maintenance of the Navy’s eight trend I imagine that solution will opportunities in supply understands, with the federal Anzac Class frigates. require a number of organisa- Making waves chain for frigate, government and Naval Group WAMA won the circa $2 billion tions to collaborate. submarine builds having signed their strategic WA suppliers have won at least contract in 2016, with an initial “We’d certainly see that we partnership agreement earlier $3 billion of defence contracts so term of 6.5 years that will likely could add value to that solution, • Henderson precinct this year. far this financial year (see table, be extended until the end of life. and we’d be one of several naval in pole position for But the level of engagement page 22), adding to previously Most of that work is under- sustainment organisations who sustainment work indicates WA contractors are announced works packages. taken in Henderson. would have a long hard look at angling for a major role in the The biggest new contract was NSM general manager Joe that.” • $1.4 billion of onshore submarine build, even if the that signed by Naval Ship Man- Smith told Business News the He said sustainment oppor- naval investments final product is being assembled agement for the maintenance of company would be doubling its tunities for the Hunter Class in Adelaide. the Canberra Class landing heli- workforce to about 250, with frigates were still some distance likely or under way Two other major capital copter dock vessels, a 15-year, $1.5 most of the new recruits to be in away, with the first vessel to expenditure programs being billion arrangement. Sydney. enter service in the late 2020s. THE BIG BUILDS $bn Naval Group (France) 50.0 Sea1000 submarines BAE Systems (British) 35.0 Hunter Class Frigates Rheinmetall (German) 5.2 Land 400 vehicle combat system Lurssen & Civmec (German) 2.8 Offshore Patrol Vessels Rheinmetall BOXER CRV for Land 400 Phase 2 trials at Puckapunyal, Victoria. Photo: Rhinemetall Collins Class Submarine. Photo: ASC The big sustainment Anzac Class Frigates WAMA Consortium packages Hunter Class Frigates Not yet awarded Collins Class Submarines Shortfin-Baracuda Submarines Not yet awarded 2 businessnews.com.au | June 17, 2019 FEATURE WA defence sector aims to build on contract wins WA will be in a strong position BAE has about 500 staff on site Investment The state government will be to win the majority of this work, at its Henderson operation, with pitching for more investments at There are four notable ship- however. about 60 per cent trades and 40 the Australian Marine Complex $ building programs in the pipeline “Aside from the Collins Class per cent professional services, at Henderson, including $100 for Henderson. bn full cycle (mid-life) dockings, Mr Simmons said. million for the Ship Zero con- 1.5 The biggest is the Offshore CANBERRA CLASS Adelaide is not really set up as a The company acquired Anzac cept, which includes a systems Patrol Vessels, 10 of which will sustainment hub,” Mr Smith said. Class frigates builder Tenix program office and through-life SUSTAINMENT be built by Lurssen and Civmec “Typically, from a sustainment Defence in 2008. support facility. CONTRACT in a contract worth $2.8 billion, perspective, proximity to major “As part of (the maintenance Other moves might include starting from 2020. naval bases is key. contract) we have a major buying a bigger boatlift. compatible with Attack Class A hydrographic vessel for ocean “It just adds time and costs to upgrade to the project, the AMC general manager Jon- and Hunter Class vessels. research and two Huon Class Mine the Navy otherwise and is not Anzac midlife capability assur- athan Smith said the state “The vessels are getting bigger, Hunters are also to be built in WA. practical from a crew perspective. ance program, where we’re government office charged with they’re longer so they use more One program already well “Having the right network of doing a range of engineering supporting the local defence wharf space, they’re heavier so under way is the $335 million suppliers and infrastructure changes on the platform to industry, Defence West, was we need to have the lift capabil- Pacific Patrol Boat replacement is also important, and WA has make sure they’re still in ser- planning to make the facilities ity that can get those vessels out that, although needs to consider vice and capable for future program, where Austal is build- of the water,” he said. further investment, particularly deployments,” Mr Simmons ing 21 boats. Business News understands in relation to docking capability said. The federal government has Sydney is the only location in to accommodate the larger naval The vessels began service nearly $1.4 billion of onshore Australia that has equipment vessels.” from 1996, and are likely to con- naval investments likely or large enough to dock vessels BAE Systems general manager tinue for decades. under way, according to the such as the Canberra Class, (Henderson) Luke Simmons said “The Anzac Class will have to BNiQ Projects list. which one industry source sug- location was key for sustainment (operate until) 2045, so they’ll A $367 million expansion of gested is a sovereign risk issue. work. require further upgrades and HMAS Stirling Naval Base is “We have quite a large portion maintenance,” he said. ongoing, with Doric the main Opportunities of the fleet homeported here at “We’re not sure what that level contractor. One operation to have put on HMAS Stirling,” Mr Simmons of work is going to look like at the An additional $1 billion is significant new staff in recent told Business News. moment, but (we’ll ensure) we planned for Hunter Class and years is the federal government’s “That’s easy access, and strate- have the capability to continue Offshore Patrol Vessel training ASC. gically important we have them providing service to the Anzac centres, both to be at HMAS ASC is responsible for building here in WA.” Class.” Stirling. submarines in Adelaide, but a big HOME: HMAS Anzac (left) and HMAS Perth under maintenance work at Henderson. Photo: BAE Systems Australia FEATURE DEFENCE AGILE: Eve Clark says L3 Ocenaia is taking on bigger competitors. Photo: Gabriel Oliveira WA BUSINESSES & PROJECTS AWARDED IN 2019FY Building on ($10 MILLION PLUS) Business $m Service defence wins Naval Ship Management 1,500.0 Landing helicopter dock vessels Lockheed Martin & Calytrix Technologies* 533.0 JP9711 Simulation capability Phoenix International 388.0 Submarine rescue and support Kinetic IT 59.1 ICT service desk, 4 years We were less than 70 BMD Constructions 33.9 Airfields maintenance (including RAAF Pearce & Gingin) Risk Management Technologies Software, support for WHS Mangement, 5 years people at the beginning of last 33.5 Kinetic IT 32.3 Support services for integration management year, now we’re past 100 and Duratec Australia 31.8 Aviation refuelling vehicle facilities we’ll probably get to 120 shortly ASP Ship Management 22.2 Works package, HMAS Sirius Raytheon Australia (Henderson) 20.9 AWD combat system services & materials - Eve Clark Airflite 20.2 Fixed wing training aircraft chunk of ongoing work on the “Workforce skills that are One Tree Community Services 17.3 Defence childcare program, 7 years Collins Class is undertaken in utilised in the resources and oil Badge Constructions 17.2 Joint Health Command garrison upgrade Henderson, including mid-cycle and gas sectors are easily trans- Ertech 14.8 Shoalwater Bay training area repairs and intermediate dockings. ferable to shipbuilding and naval Duratec Australia HMAS Creswell college works ASC has grown its WA work- sustainment.” 13.3 force from 175 when it opened in He said there were about 100 Duratec Australia 12.4 HMAS Creswell mess works 2009 to more than 450 today. WA businesses in ASC’s supply Barpa Construction Services 10.3 RAAF Base Curtin fuel installation remediation General manager WA Craig chain, including Cape, Chandler Vandepeer told Business News Mcleod, Trojan and Evolution WA BUSINESSES & PROJECTS AWARDED IN 2019FY ASC had been able to lift staff Marine.
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