VIEWPOINT: Sovereign shipbuilding matters now more than ever

Paddy Gregg The Commonwealth Government’s decision to appoint Austal as the strategic shipbuilder at Henderson is more than a vote of confidence in a local company. It is a clear recognition of the importance of sovereign capability in an increasingly complex and uncertain world. Under the Strategic Shipbuilding Agreement just signed with the Commonwealth, Austal Defence Australia will serve as the Prime Contractor for key elements of the Naval Shipbuilding and Sustainment Plan over the next decade. This includes the building of Landing Craft Medium and Landing Craft Heavy vessels, and setting the basis for work to follow-on General-Purpose Frigates and optionally crewed vessels. These vessels are more than platforms, they are enablers of innovation mobility, sovereignty, and self-reliance. Their construction in Western Australia will reinforce the industrial foundations needed to support the next generation of naval capability. And they will provide the men and women in our armed services critical maritime infrastructure to defend our nation. A continuous shipbuilder in a continuous shipbuilding enterprise This announcement represents continuity for Austal and the wider industry in Western Australia. Henderson has long played a vital role in naval and border protection capability, and Austal has delivered more than 100 defence and government vessels from its WA operations. Crucially, it has also established a resilient, sovereign, supply chain, working with large companies right through to local small to medium enterprises, to build these vessels. Sovereign industrial capacity cannot be switched on overnight. It takes decades of investment in infrastructure, systems and most importantly, people. It is more than a brand name and it is more than a facility. Ships are built by shipbuilders, not sheds and at its core is decades of shipbuilding know-how embodied in a skilled and motivated workforce. The appointment of Austal under this agreement ensures that the workforce, supply chains and intellectual capital built over 35 years are retained and grown and are not lost to stop-start investment cycles. Austal’s experience building, delivering and supporting 19 Cape Class Patrol Boats to date, and our recent delivery of 21 Guardian Class Pacific Patrol Boats for the Commonwealth’s Pacific Maritime Security Program, shows what can be achieved when a continuous build strategy is backed by an experienced Australian partner. Austal welcomes the opportunity to continue to develop its Australian defence capabilities from Patrol Vessels through Landing Craft to General Purpose Frigates and looks forward to working with the Commonwealth Government to develop a reliable and capable ecosystem of industry partners at Henderson, Western Australia.  Building sovereign capability in Australia’s interest The value of sovereign control over strategic assets has been sharply reinforced in recent years. Whether through pandemics, conflict, or supply chain disruption, the risks of over-reliance on foreign ownership or offshore production have become plain. This is especially true in the defence domain. Control over design, build and sustainment ensures operational flexibility and the ability to respond rapidly to changing strategic circumstances. It means Australia can build the ships it needs, when it needs them, without waiting on overseas production or approval. The lesson of the Darwin Port is still fresh. A strategically important asset, under offshore control. The consequences are now being worked through at considerable cost. In defence shipbuilding, we must be careful not to repeat the same mistake. Strategic assets should remain in sovereign hands. Global reach, national purpose Austal is uniquely positioned to support Australia’s defence objectives. We are the only Australian shipbuilder to operate at scale both domestically and abroad. In addition to real experience delivering meaningful Australian Defence programs, our US operations in Mobile, Alabama have delivered dozens of advanced combatants and support vessels to the United States Navy, including the Independence-class Littoral Combat Ships and Expeditionary Fast Transports. More recently, we have been enlisted to help deliver critical modules for the Virginia-class nuclear-powered submarines, a key enabler of the AUKUS submarine pathway. That work, already under way, reflects the confidence of our allies in Austal’s engineering capability, quality standards and program execution. Few companies globally, and none locally, can match that level of trust and technical interoperability. It is a strength we bring home to Australia, with a local team backed by international experience. A national plan needs national players The 2024 Naval Shipbuilding and Sustainment Plan sets out a clear roadmap: a AU $159 billion investment to deliver a sovereign, scalable, and resilient maritime industrial base. That includes building 55 new vessels over the next decade and sustaining them over the generations that follow. Delivering that plan is a national undertaking. It requires not just yards and steel, but people — thousands of skilled tradespeople, engineers, designers and planners across Australia. Austal is ready to lead that effort in Western Australia. Our workforce is already trained, cleared and experienced. And our track record of more than 340 ships delivered globally shows we can execute at scale. The Strategic Shipbuilding Agreement ensures that the next decade of naval construction is grounded in sovereign control, operational certainty, and industrial continuity. But it also sets the stage for what comes next: new platforms, new technologies, and new ways of delivering maritime capability. From optionally crewed vessels to modular upgrades and integrated sustainment, the future of shipbuilding will demand flexibility as well as strength. Austal is ready for that challenge. (Editor’s Note: Paddy Gregg is CEO of Austal Limited.) For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]