Australia commits AUD 12 billion to kick off Henderson shipbuilding plan

Image:Australian Government]

In a statement released yesterday, Australian defense ministers said that the Albanese administration will provide AUD 12 billion [about USD 8 billion] towards delivering a Defence Precinct at Henderson to deliver continuous naval shipbuilding and AUKUS capabilities in Western Australia.

As we reported at that time, plans for the expansion of the Henderson Shipyard into the Defence Precinct were first unveiled in October 2024.

“Alongside the Albanese Government’s record investments across shipbuilding and AUKUS in Western Australia, said the statement, “these commitments will support 10,000 direct jobs over the next two decades as well as providing opportunities for small and medium sized businesses across the state.

“Today’s announcement of new money is a significant down payment for the Defence Precinct, with early independent planning and advice indicating the Henderson Precinct will require investment in the order of AUD 25 billion over the decade.

“This early commitment of funding will provide certainty to industry who will partner on the construction of infrastructure and facilities and will also kick-start early works whilst more detailed planning and design work for Henderson are finalized.”

This initial investment will underpin the delivery of:

• The construction of surface vessels for the Australian Defence Force, starting with Army’s Landing Craft and, pending successful consolidation, the domestic build element of Australia’s future general purpose frigates;
• Facilities to support the sustainment of Australia’s surface combatant vessels;
• Contingency docking capabilities for Australia’s future conventionally-armed, nuclear­ powered submarine fleet from the early 2030s; and
• Depot-level maintenance, including graving docks.

Progressing these capabilities is seen as critical for Australia’s delivery of the AUKUS pathway and ensure Australia is ready to receive its first Virginia class submarine in the early 2030s.

This commitment builds on the government’s initial $127 million commitment to progress planning for the Defence Precinct.

Additional funding requirements will be considered once detailed design works are finalized and as delivery models, including the opportunity for private financing models, are determined.