Australia Submarine Contract Award in Final Stage

Maritime Activity Reports, Inc.

January 4, 2016

Royal Australian Navy Collins-class submarine HMAS Sheean (SSG-77) near the Sydney Opera House. Photo: U.S.Naval Institute

Royal Australian Navy Collins-class submarine HMAS Sheean (SSG-77) near the Sydney Opera House. Photo: U.S.Naval Institute

 The Australian government has begun its final evaluation of bids from Japan, Germany and France to choose the maker of its next-generation submarine and is expected to make its decision by the end of June, reports the Japan Times. 

The navy's new submarine fleet could reportedly cost taxpayers at least $5 billion less than expected, secret price estimates given to Defence by three international competitors show.
The confidential bids lodged by Germany, France and Japan offer a much lower cost of building an eight-submarine fleet in Adelaide than was anticipated, The Australian newspaper reported on Saturday. 
Each of the three bidders for the submarine contract — Germany’s TKMS, France’s DCNS and the Japanese government — has refused to disclose publicly their final estimated costs of building the new fleet.
The savings are in the range of $10bn to $12bn, when it was previously expected the project would cost about $20bn, based on a 12-boat fleet. 
If the government decides to build 12 submarines instead of eight, the bidders estimate the cost will reach about $15bn - a potential $5bn saving.
The Australian government wants the largest and most sophisticated conventional submarine ever built, a 4000-plus tonne boat with a US combat system and the ability to fire cruise missiles and deploy special forces.
Australia plans to construct 8 to 12 new submarines in a project worth 20 billion Australian dollars. Including long-term maintenance expenses, the total cost is seen ballooning to about AU$50 billion.
The Prime Minister and Defence Minister Marise Payne have delayed the release of the white paper until the first quarter of next year and have left open the prospect of revising the contents of the blueprint, including the size of the submarine fleet. 
Maritime Reporter Magazine Cover Nov 2019 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News