SYDNEY. Australia has announced a significant investment to enhance its naval capabilities, signing an A$2.2 billion ($1.4 billion) contract with state-owned submarine builder ASC to upgrade its Collins-class submarines. The four-year “sustainment contract” aims to bolster the fleet’s operational effectiveness as part of the government’s commitment to maintaining a strong maritime deterrent.
Defence Industry Minister Pat Conroy described the contract as essential for ensuring that the diesel-electric powered Collins-class submarines remain “a potent strike and deterrence capability.” The deal will directly support job security for over 1,100 highly skilled workers at facilities in Henderson, Western Australia, and Osborne, South Australia.
Osborne is a pivotal site where ASC, in partnership with Britain’s BAE Systems, will be constructing Australia’s future fleet of nuclear-powered submarines. This initiative is a key component of the 2021 AUKUS pact involving Britain, the U.S., and Australia. However, until the new submarines are operational later this decade, Osborne will continue to handle much of the maintenance for the existing Collins-class fleet.
Conroy also highlighted that the upgrade forms part of the center-left government’s broader commitment of A$4 to A$5 billion to sustain the Collins-class submarines, which are projected to remain in service into the 2040s.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
