20 November 2015

Editorial: How Will Australia Choose Its Next Submarine Builder?

By Mina Pollmann

As France, Germany, and Japan promote their bids, a look at Australia’s wishlist for its next submarine class.

This week, the three companies competing to build Australia’s next generation of submarines publicly discussed their proposals at the Submarine Institute of Australia’s third Submarine Science, Technology, and Engineering Conference held in Adelaide, South Australia. The November 30 deadline for the Japanese, German, and French bidders to submit their proposals for a modified Soryu, the Type 216, and the Shortfin Barracuda Block 1A, respectively, is rapidly approaching, and the competition for the $20 billion prize intensifying.

In a dramatic reversal from speculation a year ago that Australia would purchase off-the-shelf submarines from Japan, each bidder has committed to build at Australian Submarine Corporation (ASC) facilities. Germany and France were much quicker to embrace the local build option – out of deference to Australia’s domestic politics – than Japan, which has only recently come around to this position and with great reluctance.

For example, Germany’s ThyssenKrupp Marine Systems (TKMS) has offered to transform Australia into the shipbuilding hub of the Asia-Pacific, a proposal recently echoed by France’s state-controlled DCNS. Japan’s Kawasaki Heavy Industry-Mitsubishi Heavy Industry consortium is willing to build in Australia from day one if required to, but they still prefer a hybrid option.

In addition to considerations about the impact the submarine decision will have on local jobs, technological factors are also critical. As Industry Minister Christopher Pyne told conference participants, “The future submarine will be a unique design for Australia because there are no off-the-shelf solutions that meet our requirements.”

Read the full story at The Diplomat