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F-35B Lighting IIs assigned to the “Dragons” of Marine Medium Tiltrotor Squadron (VMM) 265 (Reinforced, 31st Marine Expeditionary Unit conduct flight ops with amphibious assault ship USS America (LHA 6.
America, flagship of the America Expeditionary Strike Group, 31st Marine Expeditionary Unit team, is operating in the U.S. 7th Fleet area of operations to enhance interoperability with allies and partners.
The Australian Offshore Patrol Vessel or the Arafura Class OPV program is the launch program for the new Australian approach to shipbuilding.
Termed a “continuous shipbuilding process,” the core point is to have an ongoing shipbuilding effort, rather than a start and stop approach built around a single platform naval acquisition, one at a time.
But the new approach is more than that.
It is about shaping a new industrial-government partnership and having a new role for the lead contractor working with Australian suppliers.
This article is the second of three.
I have had the chance to visit the Henderson shipyards, and an opportunity to talk with Luerssen and Civmec, the two partners in the Australian Maritime Shipbuilding and Export Group (AMSEG).
In the first article, I addressed the role of Luerssen; in this I am addressing the role of Civmec.
My graphic below highlights how the partnership is working:
When I first learned that Civmec was going to be the major build partner of Luerssen, I must admit that I was a bit surprise: Civmec is a shipbuilder?
Clearly, they are a major Australian company in building infrastructure, and in steel production, but certainly, they are not a household name in shipbuilding.
But since my original reactions, I along with the Australian public have begun to learn more about the company and what they do and how they work.
With my visit to Henderson, I was able to talk with two senior Civmec officials as well as to review the public information provided by the company to sort through who they are, what they are doing, and why selecting them as the build partner for Luerssen made a great deal of sense.
During my visit, I met with Jim Fitzgerald, Executive Chairman of Civmec, and with Mark Clay, Project Manager, formerly of Austal and now with Civmec.
I am not going to quote them directly in this article, but will highlight my key takeaways from my search of the public available data, discussions held in Perth, Adelaide, Canberra and Sydney with Royal Australian Navy and Commonwealth officials, and my meetings at Henderson.
The first key takeaway was my having missed core competence of the company in plain view.
It is clear that in my initial read of the Civmec choice, I had missed one major area in which they work which is central to shipbuilding; they are players in the oil and gas offshore platform business. These are certainly sea bases and of relevance more generally to managing a shipbuilding enterprise.
A second key takeaway is the significant investment which Civmec made in shipbuilding PRIOR to the award of the OPV contract.
Notably, in 2016 Civmec announced that the Company had executed an Asset Sales Agreement for the acquisition of Australia’s largest privately-owned engineering and shipbuilding company, Forgacs.
Following the due diligence process and subsequent negotiations the company decided that the acquisition will include the Forgacs name, the shipyard facilities, and the assets located at Tomago, New South Wales…
This provided Civmec with a significant East Coast presence in the ship building and maintenance business as well as enhancing its overall portfolio in the maritime industry.
This is how Civmec in the brochure on the company describes this addition to the company:
In February 2016, Civmec acquired Australia’s largest privately-owned engineering and shipbuilding company, Forgacs, including its shipyard facilities and assets located at Tomago, New South Wales.
This strategic acquisition, through an asset sale agreement, has enabled Civmec to develop its East coast operations through the landholding and associated assets. The purchase included IP developed over decades of operation across the Defence sector.
Commencing operations in the 1960s, Forgacs forged a strong name in the shipbuilding industry, delivering major programs for the Royal Australian Navy, including the conversion of HMAS Manoora and HMAS Kanimbla into amphibious helicopter support ships, as well as hull modules for the ANZAC frigates and the Air Warfare Destroyers program. The Tomago shipyard has built some of Australia’s iconic ships including the ice breaker Aurora Australis, HMAS Tobruk and hull sections of Collins Class submarines.
The company’s shipbuilding capability has been further enhanced since the acquisition with the engagement of industry specialists, positioning us for future shipbuilding and sustainment opportunities.
The third takeaway was provided by Jim Fitzgerald at the beginning of our session where he went through the transformation of the Henderson yard from 2010 to 2020.
His portfolio of photos highlighted the transformation of the yard through this 11-year period from a fairly limited facility to a much more robust infrastructure to support shipbuilding and maintenance.
He noted throughout that Civmec was investing in its future in the maritime business prior to and obviously after having received a contract to work on the new Australian OPV.
Just taking a look at three points in history at the yard certainly highlights the effort, and the commitment of Civmec to build a 21st century shipbuilding and maintenance facility.
This is a shot from 2009:
And this is a shot from 2016:
And this is a shot from 2019:
And what you see in the picture above, is a facility which I visited during the site tour and it is not only completed but went from flat ground to completion in only 18 months.
The fourth takeaway was that the build of the first two Arafura Class OPVs at the BAE/ASC yard in Adelaide was not taking away from the effort of Civmec for the overall program or its preparation to build the remaining ships in the program at Henderson.
The materials being cut to build the ship are being done at one facility, not two, and that facility was the one which I visited in Henderson. The material is shipped from Henderson to Adelaide by road and rail and given that the cost of transport West to East is significantly less than East to West, the cost factor of having the initial assembly in Adelaide rather than Henderson is very manageable.
This also allows the Henderson yard to have a two-ship run through prior to launching full production at Henderson.
This is a digital production facility which is clearly evident when you visit the cutting facilities at the yard, where precision is the name of the game and where the production workers and staff are managing a digital production process.
This includes having a control room which is monitoring the parts flows into the yard and working schedules that are designed that materials for production arrive just in time for the production process.
The fifth takeaway was that the yard had been built with a clear build process which could take the manufactured parts, work those into modules for the final assembly process, move those modules then into the paint and then assembly hall areas and then when the ship is completed over to the floating dock for final completion and acceptance.
And this is done on the real estate of the single yard.
The graphic below gives one the sense geographically of this workflow:
The sixth takeaway is that the main assembly and sustainment hall is massive and can accommodate the Royal Australian Navy’s ship up to the size of the Air Warfare destroyer.
The graphic below highlights the assembly hall:
This approach clearly meets the concept of how the Commonwealth wants to approach to future of sustainment of its fleet.
When at the Seapower Conference held in Sydney last Fall, I listened to a presentation by Rear Admiral Wendy Malcolm, Head of Maritime Systems Capability Acquisition and Sustainment Group.
Rear Admiral Malcom highlighted the importance of ensuring that a new sustainment strategy be built into the build out of the next generation Australian navy.
She argued that the Australian government has committed itself to a step change in naval capability. Australia will be engaged in the most significant recapitalization of its Navy since the Second World War.
“We need to reshape the way we sustain our fleet as we go about a significant change in how we are doing Naval acquisition.”
“As a result, we need to future proof our Navy so that it is capable and lethal and available when and where they are needed.
“We need to build a sustainment model which ensures that we can do this as well.”
Sustainment has been largely thought of as the afterthought to acquisition of a new platform.
She argued that with the new “continuous shipbuilding approach” being worked, sustainment needs to be built in from the start into this process approach.
“We should from the outset to consider the best ways to sustain the force and to do so with engagement with industry in the solutions from the outset.”
She noted that the acquisition budget is roughly equivalent to the sustainment budget, and this means that a new approach to sustainment needs to accompany the new acquisition approach from the outset to ensure the delivery and operations of the most lethal and capable combat fleet which Australia can provide.
“There are serious external and internal forces that are forcing change in our thinking about how we will use our fleet…. A major investment in shipyards, work force, and in new ships requires an appropriate sustainment approach to deliver the capability to do the tasks our navy is and will be required to do.”
The shift to “continuous ship building” entails a major shift in how Australia needs to think about sustainment as well. She argued that a number of technologies had emerged which allow from a more flexible and adaptative way not only to build but to sustain ships as well.
“We need to take a fleet view and to shape a continuous approach to sustainment as well.”
Rear Admiral Malcolm dubbed the new approach of a continuous sustainment approach or environment as Plan Galileo.
Clearly, Civmec is ready for Plan Galileo.
The seventh takeaway is that clearly Civmec was well positioned for digital shipbuilding and sustainment for as early as 2012 they had introduced an information management system which is a clear foundation to support a digital approach.
This system is called “CIVTRAC,” and is described in the Civmec brochure as follows:
We are certified to ISO 9001, the internationally recognised standard for quality management, and our heavy engineering facilities have also achieved CC3 certification to the requirements of AS/NZS 5131-2016. We have also obtained certification to ISO 3834.2:2008 – Quality requirements for fusion welding of metallic materials (Part 2: Comprehensive quality requirements).
Utilising Civtrac, our proprietary web-based integrated business management system, we are able to accurately provide ‘live’ tracking, managing all aspects of project delivery, including:
Document Control
Material Control
Project Management and Reporting
Safety Management
Quality Control
Cost Management
With 3D model interface, the productivity tracking, quality control and completion management activities undertaken in the field, recorded on tablets in real-time, facilitate Civtrac’s seamless flow from fabrication through to installation and commissioning.
Civtrac also enables our clients to directly monitor real-time progress via a remote login, providing transparency across the entire project life-cycle, from material control to delivery and installation.
In short, Civmec has put in place a capability to engage in and support the “continuous shipbuilding approach.”
MH-60S Sea Hawk helicopters assigned to the “Island Knights” of Helicopter Sea Combat Squadron (HSC) 25 conduct flight ops with amphibious assault ship USS America (LHA 6).
America, flagship of the America Expeditionary Strike Group, 31st Marine Expeditionary Unit team, is operating in the U.S. 7th Fleet area of operations to enhance interoperability with allies and partners.
Paris – On March 18, 2020, the French air force flew six civilian patients severely hit by the deadly coronavirus in an A330 MRTT military transport jet fitted out with an onboard medical evacuation unit, the armed forces ministry said.
That was the first time the service flew its airborne hospital unit, dubbed Morpheus, in a domestic flight as the module was used to fly wounded personnel to France from distant overseas deployments.
The modular units, previously fitted on the C-135, can be equipped for intensive care as well as lighter medical conditions.
The A330 multirole tanker transport aircraft flew from Mulhouse, eastern France, and landed at Istres airbase in the south, allowing the patients to be transferred to military hospitals in Marseille and Toulon, the ministry said.
The military flight was ordered to lighten the load on hospitals in eastern France, one of the hardest hit regions, with the public health authority registering March 17 1,820 cases of coronavirus in that part of the country.
In other medical moves, armed forces minister Florence Parly told Le Parisien daily the ministry found it had five million surgical masks and was delivering them to the ministry of health and social affairs.
There has been widespread concern in the medical profession over the lack of masks, leaving the staff vulnerable to the superbug.
The ministry has also arranged for a mobile military hospital to be set up in the Alsace northeastern region.
Those limited military operations were in stark contrast to a rush of rumors and fake news stories on social media which fuelled talk of army deployment to enforce a national curfew.
A curfew has not been ordered.
Photos circulated on social media of armored vehicles on the motorway and in suburbs, with talk these would be used in the curfew.
Those photos dated from earlier times or were on routine movement.
Such was the spread of falsehoods, the armed forces junior minister, Genevieve Darrieussecq, tweeted “Stop Fake News,” saying the services would not intervene in the lock down and they were playing their part in a national effort against the epidemic.
The ministry’s website denied point by point the talk of the military taking on a greater role in the lock down.
French president Emmanuel Macron said March 16 in a live speech broadcast to the nation there would be a national lock down as of midday the next day. That restrictive measure required people to stay indoors unless going to work, had emergency needs or carried an obligatory travel document.
Some 100,000 police were mobilized to enforce the lock down, and would accept press cards in place of the travel document, the interior minister said March 16. The document can be downloaded from the internet or written out by hand.
Those breaching the lock down must pay hefty fines.
French hospitals had admitted March 18 3,626 patients, of which 931 were in intensive care, afternoon daily Le Monde reported.
The virus had claimed 264 lives, an increase of 89 deaths within 24 hours.
About half the patients with serious cases were under 60.
Featured Photo: The Morphée kit on the Airbus A330 MRTT is designed for the intensive care of up to 12 patients. Source: French Air Force
For the first time since 1989, an Air Force Hercules transport aircraft has flown to Antarctica.
On February 29, a No. 37 Squadron C-130J took off from Hobart Airport for the 3400km sojourn across the Southern Ocean to the ice runway at Wilkins Aerodrome.
The flight required the use of a C-130J equipped with external fuel tanks, which increased its total fuel capacity from 19 tonnes to 27 tonnes.
The last time a RAAF Hercules touched down on Antarctic ice was in 1989, when C-130Hs from No. 36 Squadron flew missions from Christchurch in New Zealand to the American station at McMurdo.
Director of the Australian Antarctic Division, Mr Kim Ellis, said the flight south to the 3.5km ice runway took about 7.5 hours.
“The Hercules delivered 780 kilograms of cargo to Australia’s expeditioners at nearby Casey research station and demonstrated the ability to carry a larger load if required,” Mr Ellis said.
“This is another great capability the Australian Antarctic Program now has to reach our stations, deliver cargo and provide medical support to our people working in Antarctica.”
The Hercules also carried additional fuel inside its cargo compartment.
At Wilkins Aerodrome, this fuel was pumped into the Hercules’ tanks by an Australian Army Ground crewman from 6 Aviation Regiment.
Commander Australian Contingent for Operation Southern Discovery, Wing Commander Dion Wright, said the flight was one of the longest-range missions undertaken by an Australian C-130J Hercules.
“Using the C-130J provides additional capacity for the RAAF to support the Australian Antarctic Division rather than by relying on the C-17A Globemaster alone,” Wing Commander Wright said.
On February 27, a C-17A delivered a tractor and critical station equipment to Wilkins.
This included a Ground Power Unit to support the Airbus A319 transport operated by the Australian Antarctic Division, and runway grading equipment.
It returned with eight pallets of cargo and 23 passengers.
On February 29, a second C-17A mission brought another tractor to Wilkins and returned to Hobart with eight pallets of cargo and four passengers.
Since 2016, Air Force C-17As have provided airlift support to the Australian Antarctic Division, making up to six flights during the summer season.
For Japan and the international community, the waters off the coast of Somalia and the Gulf of Aden are extremely important sea lanes.
In response to the piracy incidents in the area, Ministry of Defense (MOD) and Japan Self-Defense Forces (JSDF) takes measures for counter-piracy operations.
Legislation Concerning Counter-Piracy Operations
In March 2009, for the purpose of protecting Japan-affiliated vessels from acts of piracy in the waters off the coast of Somalia and in the Gulf of Aden, two Japan Maritime Self-Defense Force (JMSDF) destroyers began providing direct escort to Japan-affiliated vessels, while JMSDF P-3C patrol aircraft also commenced warning and surveillance operations in June the same year.
In July the same year, in order to deal appropriately and effectively with acts of piracy, the Anti-Piracy Measures Act made it possible to protect the vessels of all nations from acts of piracy.
Activities by the Self-Defense Forces
Deployment Surface Force for Counter Piracy Enforcement (DSPE)
The DSPE conducts counterpiracy measures using JMSDF destroyers (one destroyer dispatched). The DSPE strives to ensure the safety of ships navigating in the area in two different manners – direct escort of private vessels across the Gulf of Aden, and zone defense in allocated areas in the Gulf of Aden. There are Japan Coast Guard (JCG) officers aboard the JMSDF destroyer.
The DAPE conducts counterpiracy activities using JMSDF P-3C patrol aircraft (two aircraft dispatched). The unit conducts warning and surveillance operations in the flight zone that is determined in coordination with the CTF 151 headquarters and confirms any suspicious boats. At the same time, the unit also provides information to the JMSDF destroyers, the naval vessels of other countries and civilian vessels, responding by such means as confirming the safety of the surrounding area immediately, if requested. The information gathered by JMSDF P-3Cs is constantly shared with other related organizations, and contributes significantly to deterring acts of piracy and disarming vessels suspected of being pirate ships.
In order to improve the operational efficiency and effectiveness of the DAPE, the DGPE carries out activities such as maintenance of the facility.
In addition to this, coordination with Government of Djibouti, the U.S. and other countries which are operating in Djibouti is one of the important tasks.
In order to strengthen coordination with the units of other countries engaged in counter-piracy operations and enhance the effectiveness of the JSDF’s counter-piracy operations, the MOD has dispatched JSDF personnel to the CTF 151 Headquarters since August 2014. During the period from May to August 2015, JSDF personnel assumed command of CTF 151 for the first time. The fourth commander is currently in office.
Disaster Relief Operations
In response to the damage caused by the heavy rain in Djibouti, a part of JSDF originally deployed for anti-piracy operations conducted water pumping in elementary school and junior high school as one of the international disaster relief operations from November 26 to December 2, 2019.
The counter-piracy operations by JSDF have been highly praised by the international community. For example, national leaders and others have expressed their gratitude, and JSDF has also been repeatedly well-received by the United Nations Security Council Resolution.
Although the number of acts of piracy occurring in the area has currently hovered at low level, considering the fact that the assumed root causes of piracy such as terrorism and poverty of Somalia have still remain unresolved and Somalia’s capability to crack down on piracy is still insufficient, there is no great change in the situation which calls for counter-piracy operations.
The MOD/JSDF will continue its utmost efforts to conduct counter-piracy operations.
This article was published in the March 2020,Japan Defense Focus.
The Australian Offshore Patrol Vessel or the Arafura Class OPV program is the launch program for the new Australian approach to shipbuilding.
Termed a “continuous shipbuilding process,” the core point is to have an ongoing shipbuilding effort, rather than a start and stop approach built around a single platform naval acquisition, one at a time.
But the new approach is more than that. It is about shaping a new industrial-government partnership and having a new role for the lead contractor working with Australian suppliers.
This article is the first of three.
I have had the chance to visit the Henderson shipyards, and an opportunity to talk with Luerssen and CIVMEC, the two partners in the Australian Maritime Shipbuilding and Export Group (AMSEG).
In a May 26, 2018 press release, Luerssen provided an update on their partnership with CIVMEC:
One of the world’s leading shipbuilders, Luerssen, has teamed with Australian engineering and construction firm Civmec to create a new force in naval shipbuilding and exports.
The joint venture, Australian Maritime Shipbuilding & Export Group (AMSEG), will partner Luerssen Australia, the prime contractor and designer for the Australian Government’s Offshore Patrol Vessel program, with West Australian-based Civmec, soon to list on the Australian Stock Exchange.
It is intended that AMSEG will play a significant role in the build of ten OPVs in Henderson, Western Australia and in driving an export shipbuilding business that will target opportunities around the region.
The joint venture will be chaired by one of the nation’s foremost naval experts, former Chief of the Navy, Vice Admiral (ret) Chris Ritchie.
“This new company will be governed by an Australian board and operate under Australian management to build world class naval vessels in best practice Australian shipyards,” Vice Admiral (ret) Ritchie said.
“We will invest in Australian skills and infrastructure and transfer expertise from SEA1180 prime, Luerssen Australia, to develop capability and support the foundation of a sustainable naval shipbuilding industry that is able to export to the global market.”
Executive Chairman of Civmec and AMSEG Director, Jim Fitzgerald, said the formation of the new company was further evidence of the commitment the SEA1180 industrial team had made to materially growing Australia’s shipbuilding industry.
“This is a huge step forward for Australia’s shipbuilding industry. It is an exciting development that will fully underpin the development of the new state of the art shipbuilding facility at Civmec’s Henderson headquarters,” Mr Fitzgerald said.
Mr Fitzgerald’s comments were echoed by Tim Wagner, Managing Director of Luerssen Defence and AMSEG Director.
“Luerssen has always believed in the vision of the Australian Government’s Naval Shipbuilding Plan and wanted to not only be a part of it, but to help make it a reality.”
“We set up Luerssen Australia in May 2017, today we have announced this important joint venture and later this year we will open applications to our program which will fund scholarships and apprenticeships for aspiring Australian shipbuilders. The future of Australian naval shipbuilding looks bright,” Mr. Wagner said.
In this article, the focus of attention is upon Luerssen; the next article on CIVMEC; and the third on the OPV team for the Commonwealth of Australia.
With regard to the partnership, Luerssen Australia Pty Ltd is the prime contractor with the Commonwealth and CIVMEC is its WA based ship building partner. The AMSEG JV is focused in the short to medium term on sustainment activities and future builds outside of SEA1180.
In the graphic below, I have conceptualized how one might look at the partnership between Luerssen and CIVMEC and the roles and interactive relationship between the two partners. This working relationship is clearly a partnership, a point which was emphasized throughout my visit to Henderson. It was highlighted as a collaborative, close, mutually shared objectives partnering approach for the partners.
During my visit to Luerssen at the Henderson Shipyard, I had a chance to meet with Enrico Kestel, SEA1180 (OPV) Training Manager and Mick Handcock, SEA1180 (OPV) Senior ILS engineer.
While I am not going to quote them directly, I will highlight takeaways I had from our conversation, my visits in Perth and Canberra, and my review of public statements, press releases and articles by other analysts of the program.
The first key takeaway is that the major challenge facing Luerssen is that it is both responsible for delivering the program to the Commonwealth and is also engaged in setting up a company in Australia.
Lürssen is an integrated shipyard in Bremen, Germany with habitual working relationships with their suppliers; in Australia, Luerssen is taking the Germany expertise in design and build and applying it to Australia but working with a new group of suppliers to shape the new build process in Australia.
The second key takeaway is that it is a new build process.
It is a digital design and build process.
The design is worked in Bremen, reviewed and confirmed by Luerssen Australia at the build site which for the first two OPV’s is being done at the BAE/ASC Adelaide yard at Osborne.
When I visited the CIVMEC facilities in Henderson, one could see the digital process in operation, where the robots under the supervision of the CIVMEC team were translating design to production.
A key advantage of this process is that the production process clearly identifies where the parts being fabricated have come from, up to and including the suppliers.
This leads to a significant quality increase as there is significant transparency through the digital build process.
In fact, Vice Admiral (Retired) Tim Barrett underscored the importance of the new process for the shipbuilding approach being put in place:
“The Luerssen -CIVMEC partnership is meant to create a new workforce under the tutelage of Luerssen (particularly in manufacturing in digital shipyards) rather than merely compete for an existing (pre-digital) workforce.
“This is an important feature in a long-term sovereign ship building capability.”
The third takeaway is that an ongoing dialogue between Luerssen and the team in the Department of Defence working OPV is absolutely crucial to the effort.
And in Bremen, there are members of the Australian OPV team as well working directly with the design side of the build process.
It is clearly crucial to align expectations on the project for both industry and the government, and the team talks multiple times daily with regard to the ongoing effort.
In my words, what is crucial for success with the new approach is “expectation management,” rather than having a requirements list operating as a sledgehammer by government to gain industry compliance.
It is a very different process if one wants to build a ship which is delivering capabilities for a concept of operations; rather than building a platform to a narrow set of pre-set requirements.
The fourth takeaway is that for the Germany company, it is operating in Germany with an Industry 4.0 process which is how the digital build and sustainment process is then realized.
For this to work effectively, all of the suppliers as well as Lürssen must have the proper data flowing through the system to ensure the kind of accuracy and predictability of the build understood as a workflow process.
A challenge in Australia will be for Luerssen Australia and the Commonwealth to have a supply chain that can operate at Industry 4.0 standards and provide the flow of the quality and reliability of the data required to shape an effective build process flowing into the integrated logistics process as well.
This clearly is a work in progress.
For the launch of the contract, the Commonwealth mandated a set of key suppliers, but in managing these suppliers and adding other Australian SMEs, Luerssen works a proposal to the Commonwealth with regard to vendors and terms of working with the vendors, and the Commonwealth then makes a decision for Luerssen to implement.
The tender for the Capability Life Cycle Manager (CLCM) role within what is termed the OPV Enterprise, essentially the combined Government and industry “sustainment team”, has just been released. An industry day was scheduled to be held on March 16, 2020 but was postponed due to the coronavirus impact.
But given the nature of the very different build process, it is clear that the approach to logistics will be shaped differently as well from a legacy shipbuilding process.
A key aspect of the ILS solution set will be to craft a fleet wide logistics solution for the OPV over the full Life of Type (LOT) up to and including disposal of the fleet.
How this will be done is a work in progress, and a significant aspect of the program going forward, but clearly, getting the work process data flow right in the build process will facilitate getting the work process data flow for sustainability right as well.
And that is a key part of the new approach associated with “continuous shipbuilding.”
It is not just about a build; it is about having a sustainable fleet built around a digitally upgradeable ship.
In a later article, I will address the configurability and modular aspect of the ship and why from the Navy’s perspective the design offered by Lürssen provided the kind of flexible space and power necessary for the projected future for the ship.
Appendix: The Key Suppliers on the Offshore Patrol Vessel Project
The above table comes from the SEA 1180 Phase 1 Offshore Patrol Vessel Public Plan published in October 2018.
This document added the following as well:
Luerssen Australia Pty Ltd, an exciting new entrant to the Australian defence industry landscape, is contracted by the Commonwealth of Australia (Commonwealth) as the Prime Contractor responsible for building 12 Offshore Patrol Vessels for the RAN. Construction will start in November 2018 and is expected to be completed around 2029/2030.
Luerssen is a subsidiary of a long established and successful shipbuilding group in Germany and it will quickly build its capabilities and staff in both Adelaide, SA, and Henderson, WA, to establish fully operational program management, support and engineering design capability. Luerssen has selected as its shipbuilding sub-contractors two key industry players which will offer maximum Australian involvement:
ASC OPV Shipbuilder Pty Ltd which will build the first 2 OPVs in Osborne, South Australia, and Civmec Construction & Engineering Pty Ltd, located in Henderson, Western Australia, where they will build the next 10 OPVs.
The current total contract value (until 2030) is $1,988 million expressed in constant year dollars exclusive of GST or $2,570 million expressed in out-turned year dollars exclusive of GST.
The portion representing Australian contract expenditure is currently estimated (prior to all sub-contracts being finalised) at $1,220 million in constant year dollars exclusive of GST. The AIC value has potential to grow as the program proceeds including opportunities to increase Australian industry participation linked with design reviews at ships 3, 6 and 9.
Luerssen has contracted with the major subcontractors identified in the table below to manage the majority of construction and supply activities associated with the program.
In addition to these shipbuilders Luerssen will directly engage a number of Australian companies including many Small to Medium Enterprises (SMEs) to perform work under the contract. The scope of work to be performed by these companies includes manufacturing, logistics, engineering services, project management, supply of specialist equipment items and provision of contract labour supporting contract deliverable activities.
According to a lead in by WA DEFENCE REVIEW to a video interview they did in 2018 with Peter Lürssen:
As a leading global shipbuilder, the Lurssen Group has successfully entered the Australian market, and is now heavily invested in the build program for the Royal Australian Navy’s offshore patrol vessel.
In late October Lurssen Group CEO, Peter Lurssen, gave an exclusive interview to WA DEFENCE REVIEW and talked about the company’s current activities and future interests in Australia and neighbouring regions.
Electronic Attack Squadron One Three One (VAQ-131) assigned to Naval Air Station Whidbey Island, Washington participated in Red Flag 20-1 at Nellis Air Force Base as the role of air superiority.