John Newman
The Bunker Group
Hey guys,
I came across this today:
Australia leans toward buying Japan subs to upgrade fleet - sources | Reuters
Sensationalist journalism? or is there some truth behind the stories? I suppose everything will come out at the white paper release.
Actually if you read the article a bit more closely, apart from the 'sensational' bits the journo has highlighted, there is this paragraph:
Basically that covers all bases, which I think is as much as we know already in the public domain.Options under discussion run from working jointly to develop the technology, to Australia importing the engines and building the rest, to building the fleet in South Australia under licence from Japan, to - most controversially - Canberra buying finished subs designed and built by Mitsubishi Heavy Industries Ltd and Kawasaki Heavy Industries Ltd, the sources said.
If all the boats were built in Japan then the winner would be the RAN, it would more than likely get delivery on time and on budget, the losers would be the workers constructing and assembling the sections, but as would seem likely, all the maintenance and docking cycles would be handled at the ASC yard, as is currently the case with the Collins boats.
On the other hand if all are built here by ASC, then no doubt industry and the workers would be the winners, but I suppose there is the potential for delays and cost overruns which could potentially affect the RAN, at least in the early years.
So maybe the solution might be a bit of both, the first (or maybe up to the second) boat is built completely in Japan (allows the RAN to start getting the replacements quicker) and the subsequent boats are assembled here using Australian and Japanese made sections, with Australian content progressively increasing as the number of hulls work their way down the production and assembly lines.
The other question is when would this likely start to happen?
And I suppose that will depend on if the Collins class (or some of them) are put through a further docking cycle to extend their lives by another 6, 7 years or so, as was reported to be possible a while ago. If that happens, that will take the pressure off to a degree, or the Government might decide that pouring further money into extending the lives of Collins a waste of money and start the replacement process sooner rather than later.
The other factor no doubt will be the Defence budget, a lot of big tickets items are all due during that time, obviously the Collins replacements, the Future Frigates, the F-35A's, Land 400, etc, etc, a lot of competing priorities.
Hopefully when we see the new DWP (and DCP) around mid next year a lot of those questions will be answered!