Collins-class submarine full-cycle docking stays in SA, state also secures warship upgrades

After years of waiting, the Prime Minister has confirmed SA will get the $6.4bn Collins class maintenance work, saving 900 jobs, and other major naval upgrades.

About 1600 highly skilled jobs have been locked in for South Australia across a suite of major warship and submarine upgrades, including the coveted Collins-class program.

After years of speculation – and pressure from The Advertiser’s Save Our Subs campaign – Scott Morrison at last confirmed the Collins-class full-cycle docking work would remain in Adelaide, keeping about 900 jobs in the state.

It ends years of uncertainty about whether the program would be shifted to WA.

Mr Morrison also confirmed the crucial life-of-type extension on the workhorse Collins-class submarine fleet would take place at the Osborne shipyard, creating a further 400 jobs, plus a major overhaul of the two Hobart-class air warfare destroyers.

Prime Minister Scott Morrison announced the suite of work for SA on Thursday.

“South Australia is home to some of the most skilled shipbuilding workers in the world, they have the know-how, ingenuity, industrial knowledge and determination that is required to provide our Defence Force with the very best capability,” he said.

“Osborne will be a hub for Australia’s naval shipbuilding ambitions and programs.”

Up to $6.4bn will be spent on these maintenance projects, which will extend the life of the fleet until the 2040s, just after the first of the eight nuclear-powered submarines begin hitting the water.

After every 10 years of service, each of the six Collins-class submarines rotate through a full-cycle docking, which involves thousands of maintenance and upgrade tasks over two years.

WA, despite not having a large-enough shipyard for the work, had been fighting SA for the contract as far back as 2017.

The life-of-type extension, starting in 2026, involves a comprehensive rebuild to keep the Collins class, first commissioned in 1996, operational for longer.

Adelaide workers has secured major maintenance work on the Collins-class submarine fleet.

In another major coup for SA, a $5.1bn contract to upgrade the Hobart Class air warfare destroyer fleet will happen in Adelaide from 2024, as originally foreshadowed by The Advertiser.

The contract, creating about 300 local jobs, will involve overhauling the highly sophisticated Aegis combat system in the three Adelaide-built warships and create tens of millions of dollars in related economic activity.

Adelaide workers will also equip the ships with highly precise Tomahawk cruise missiles, enabling the fleet to strike land targets at greater distances.

Across all shipbuilding work, more than 5000 SA jobs are expected to be supported by 2030.

Finance Minister and SA Senator Simon Birmingham said the projects would ensure SA remains the “epicentre of naval shipbuilding”.

“Full-cycle docking and life-of-type extension at Osborne will ensure we retain our skilled shipbuilding workforce, and will continue to create opportunities for local businesses t engage with the defence industry,” he said.

A major overhaul of the Hobart-class air warfare destroyer fleet will happen in Adelaide.

Premier Steven Marshall called the Hobart-class upgrade “the icing on the cake” for SA.

“There are billions and billions of dollars coming our way, and it’s only because we have an excellent workforce (and) we’ve got excellent training.”

With the $90bn Attack-class submarine project now ditched, French company Naval Group will no longer be needed. Senator Birmingham suggested this will create delays in the construction of Osborne’s submarine shipyard.

“We will be … working through the different steps in terms of which parts are suitable for completion (and) which parts need to be put in to a safe care and maintenance process while this program reassess the specific infrastructure needs required for the future submarines,” he said.

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