Australia Signs $1.4B Deal to Upgrade Collins-Class Submarines

The Australian government has announced a significant investment in its naval capabilities, signing a A$2.2 billion ($1.4 billion) contract with state-owned submarine builder ASC to upgrade the Royal Australian Navy’s Collins-class submarines. This four-year sustainment contract represents a major commitment to maintaining and enhancing Australia’s current submarine fleet.

The A$2.2 billion contract will span four years and is focused on upgrading and maintaining the diesel-electric powered Collins-class submarines. Defence Industry Minister Pat Conroy emphasized that this investment is part of the government’s strategy to ensure the Collins-class fleet remains a “potent strike and deterrence capability”.

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This contract is expected to have a significant positive impact on Australia’s defense industry and workforce. It will directly ensure job security for over 1,100 highly skilled workers. The work will be carried out in two key locations: Henderson in Western Australia and Osborne in South Australia.

The upgrade of the Collins-class submarines is taking place against the backdrop of Australia’s broader naval modernization efforts, including the AUKUS pact. Osborne, one of the locations for this upgrade work, is also slated to be the site where ASC and Britain’s BAE Systems will jointly build Australia’s future fleet of nuclear-powered submarines under the AUKUS agreement.

This contract is part of a larger A$4 to A$5 billion commitment by the Australian government to its submarine capabilities. The Collins-class submarines are planned to remain operational into the 2040s, bridging the gap until the new nuclear-powered submarines become available.

The upgrade of the Collins-class submarines is crucial for maintaining Australia’s naval capabilities in the short to medium term. This is particularly important given the evolving security landscape in the Indo-Pacific region and the time required to develop and deploy the future nuclear-powered submarine fleet.

Australia’s $1.4 billion investment in upgrading its Collins-class submarines demonstrates the country’s commitment to maintaining a strong and capable naval force. This contract not only enhances Australia’s defense capabilities but also provides significant economic benefits through job creation and support for the domestic defense industry. As Australia transitions towards its future nuclear-powered submarine fleet, maintaining the effectiveness of the Collins-class submarines remains a critical priority for the nation’s defense strategy.

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