Construction of Australia’s fleet of offshore patrol vessels to start in Adelaide in 2018

CONSTRUCTION of Australia’s fleet of offshore patrol boats will begin in Adelaide in 2018 to help bridge the “Valley of Death” between major shipbuilding projects — safeguarding more than 1000 jobs at Osborne. | Buoyed hope in SA’s shipbuilding

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CONSTRUCTION of Australia’s fleet of offshore patrol vessels will begin in Adelaide in 2018 to help bridge the “valley of death’’ in the shipbuilding industry before work on the Future Frigates begins in 2020.

Prime Minister Malcolm Turnbull announced the construction of 12 offshore patrol vessels will start in Adelaide, before being transferred to Western Australia when work gets underway to build nine frigates.

Local steel would be required for both the offshore patrol project and the Future Frigates — another key election issue given the financial troubles at Whyalla steelmaker Arrium.

The projects will save jobs at Adelaide-based shipbuilder ASC when the Air Warfare Destroyer project is completed.

Mr Turnbull also revealed Perth-based company Austal had been selected as the preferred tenderer to build up to 21 Pacific Patrol Boats.

Mr Turnbull said shipbuilding projects would secure more than 2500 jobs “for decades”, and thousands more indirect jobs. The OPVs themselves should create more than 400 jobs.

“Putting our navy in the right situation to keep us safe and putting our naval shipbuilding industry in the right place to build the ships we need for the future is a great national endeavour and these announcements today are a critical part of it,’’ Mr Turnbull said.

“They will directly secure more than 2500 jobs for decades to come. They will also generate thousands of additional jobs for suppliers.’’

A file photo of a Malaysian offshore patrol vessel, similar to the ones that will be built in Adelaide and Western Australia.

The government is yet to formally announce whether it will honour its pre-election promise to build 12 submarines in Adelaide.

Three companies have been short-listed to design the offshore patrol vessels. They are Damen of the Netherlands, Fassmer of Germany, and Lurssen of Germany.

BAE Systems of Britain, Fincantieri of Italy and Navantia have been short-listed to design the Future Frigates.

Mr Turnbull said the Government’s continuous build of ships would ensure the navy’s future requirements were met and shipbuilders had the certainty they needed.

“These announcements provide for two shipyards to implement the Government’s commitment to a continuous build of naval surface ships in Australia,’’ he said.

“Major warships will be built in Adelaide and minor vessels in Henderson, Western Australia.”

Prime Minister Malcolm Turnbull and Defence Minister Marise Payne announce the shipbuilding project. Picture: AAP Image/Mick Tsikas

South Australian Premier Jay Weatherill said today’s announcement “gives us a chance to fill that valley of death” but was eager to see contracts for the projects, because promises had been made before.

“We now have a commitment that gives us a chance to fill that valley of death — that means continuous shipbuilding activities down there at Techport, until we get our future submarines and we're still waiting for that announcement,” he said.

“We knew we had secured future frigates, but what we needed was something to fill that gap.

“This gives us a fighting chance at being able to keep those jobs.”

Mr Weatherill said current estimates suggested South Australians would work on two offshore patrol vessels before work moved to Western Australia.

He also called on the Federal Government to “clarify” that Australia’s Future Submarines will be built locally.

“They should reject an overseas build or a hybrid build. They should announce, I think, a preferred tenderer,” Mr Weatherill said.

“I think it would be (politically) suicidal to for the Government to turn away from its promise to build 12 new submarines here in South Australia.”

State Liberal leader Steven Marshall welcomed the news, saying the projects would “create thousands of jobs and pump billions of dollars into the South Australian economy”.

He too reiterated calls for the Federal Government to build 12 future submarines in Adelaide.

“Australia’s next generation of submarines will be critical to our nation’s defence capabilities and for employment opportunities in South Australia,” Mr Marshall said.

“The Weatherill Labor Government also needs to ensure that we have the most up-to-date and competitive infrastructure available so that South Australia is able secure shipbuilding contracts and create jobs for South Australians.”

The Federal Government’s announcement prompted a comment from former SA premier Mike Rann, who tweeted: “Air Warfare Destroyers, off shore patrol vessels, the multi-billion Future Frigates. Next stop ... the submarines”.

Air Warfare Destroyers, off shore patrol vessels, the multi-billion Future Frigates. Next stop....the submarines.

— Mike Rann (@Mike_Rann) April 18, 2016