Australia Secures $2.2 Billion Contract for Collins Class Submarine Sustainment.

On July 27, 2024, the Australian Ministry of Defense has announced a significant milestone in naval defense, with the signing of a new four-year sustainment contract with ASC Pty Ltd. This contract, valued at over $2.2 billion, will bolster the sustainment efforts of the Collins class submarines, designating South Australia and Western Australia as premier hubs for this crucial work.
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Royal Australian Navy Collins class submarine HMAS Sheean. (Picture source: Australian MoD)

The sustainment contract is set to secure over 1,100 jobs for highly skilled workers at Osborne, South Australia, and Henderson, Western Australia. This move aligns with the Albanese Government’s broader commitment, ranging from $4 to $5 billion, aimed at maintaining the Collins class submarines as a formidable strike and deterrence force.

This agreement is particularly notable as it dovetails with the recently announced life-of-type extension (LOTE) program for the Collins class submarines. The LOTE program will kick off in 2026, beginning with HMAS Farncomb at Osborne, South Australia, ensuring these submarines remain operationally effective well into the future.

ASC Pty Ltd (Australian Submarine Corporation Pty Ltd) is a prominent Australian defense contractor that specializes in the design, construction, maintenance, and sustainment of naval ships and submarines. Established in 1985, ASC Pty Ltd is a key player in Australia's naval defense industry and plays a crucial role in maintaining the country's maritime security capabilities.

The Australian Navy's submarine fleet includes six Collins class submarines: HMAS Collins, HMAS Farncomb, HMAS Waller, HMAS Dechaineux, HMAS Sheean, and HMAS Rankin. These submarines form the backbone of Australia's underwater defense capabilities.

The Collins class submarines were developed in the 1980s as part of Australia's effort to replace its aging Oberon class submarines with a new generation of advanced diesel-electric submarines. The design contract was awarded to the Swedish company Kockums in 1987, with the Australian Submarine Corporation (now ASC Pty Ltd) managing the project. Construction of the submarines began in the early 1990s at ASC's purpose-built shipyard in Osborne, South Australia. The design was based on Kockums' Type 471 submarine but significantly modified to meet Australian specifications.

The first of the Collins class submarines, HMAS Collins, was launched in August 1993 and entered into service with the Royal Australian Navy in 1996 after extensive sea trials and testing. Subsequently, the remaining five submarines—HMAS Farncomb, HMAS Waller, HMAS Dechaineux, HMAS Sheean, and HMAS Rankin—were commissioned between 1998 and 2003. These submarines have since formed the backbone of Australia's underwater defense capabilities.

The Collins class submarines are diesel-electric and are among the most advanced conventional submarines in the world. They feature a range of advanced technologies, including an anechoic coating and shock absorbers to reduce noise, making them highly stealthy. They are equipped with advanced sonar systems, sophisticated combat systems, and powerful torpedoes, allowing them to engage a variety of threats. Each submarine is 77.42 meters long, displaces around 3,400 tonnes when submerged, and can operate at depths greater than 180 meters. Their endurance and range capabilities ensure that they can conduct extended patrols and missions far from Australian waters.

Submarine capabilities are critical for the Australian Navy due to the strategic importance of maritime security in the Indo-Pacific region. As an island nation with vast maritime borders, Australia relies on its navy to protect trade routes, deter potential adversaries, and contribute to regional stability. Submarines provide a unique advantage due to their stealth, endurance, and ability to operate undetected in contested waters. They are essential for intelligence gathering, surveillance, and reconnaissance, as well as for maintaining a credible deterrent against any threats to Australia's sovereignty.

These decisions demonstrate the Australian Government’s commitment to investing in Australian industry and workers, ensuring the maintenance of Australia's sovereign capability in naval shipbuilding and sustainment.