Warship spoils to be divided

Melbourne-based shipbuilder Tenix is favoured to win the lion’s share of work to build three new navy destroyers for the Royal Australian Navy worth $6 billion. The deal, likely to be announced today, will probably also award some work to the Adelaide-based, government-owned, Australian Submarine Corporation (ASC) which has been engaged in a fierce bidding process for the shipbuilding contract.

If this is the case, then a number of Southern Australian hi-tech firms could be involved in supplying a large number of components and gain hundreds of jobs.

Tenix has just delivered 10 Anzac frigates on time and on budget from its Williamstown shipyard. It is regarded as a less risky option than ASC’s start-from-scratch “green field” site next to its Collins submarine yard at Port Adelaide.

The Government has already chosen the Aegis combat system, built by US defence giant Lockheed Martin, to be fitted to the ships for between $2 billion and $3 billion.

The Government will select a builder before it decides on the ship design, but the favourite is the Spanish F-100 frigate ahead of the German F-124 design and a larger US ship.

Tenix and ASC, and the Sydney-based Australian Defence Industries and Austal Ships from WA, will also bid to build two 25,000-tonne amphibious ships for the navy.