HMAS Supply - Program
Replacement Replenishment Vessels / Future Supply Ship
In 2012 the Australia´s Commonwealth asked Navantia for information on the capabilities of the Cantabria CSS and its commonality with the other Navantia vessels integrated within the Australian Navy. Months later, the Spanish Navy and the Australian Navy signed an agreement for the deployment of the Cantabria in Australia from February to November 2013. This deployment allowed them to evaluate the vessel capabilities (58 supply maneuvers) and the training of the crew (284 people), in addition to checking the vessel interoperability with other units of the fleet. The impact of this operation was immediate. After a feasibility phase for risk reduction, in 2015 Australia called for an offer from Navantia and another builder. Navantia was selected as preferred constructor and the contract was awarded in May 2016.
In 2013, ASC said it could deliver three ships for the price of two built offshore with some work allocated to Australian shipyards. South Korea’s DSME said that under its tender more than 90 per cent of in-service support for the first five years after delivery would be done in Australia.
On 6 June 2014, the government announced that it had given approval for Defence to conduct a limited competitive tender between Navantia of Spain and Daewoo Shipbuilding and Marine Engineering of South Korea for the construction of two replacement Auxiliary Oiler Replenishment ships (AOR). The Minister for Defence claimed that the decision to exclude Australian companies from the tender and involve only two overseas companies was due to: the urgent need to replace the vessels and avoid a capability gap; the current low productivity of shipbuilders involved with the Air Warfare Destroyer (AWD) project; and value for money considerations.
But local major shipyards could be upgraded to build the supply ships in Australia. Furthermore, the relatively small upfront costs for the improvements should not be considered in isolation but with a view to the long term benefits, especially when such infrastructure is regarded as a fundamental input to capability. The committee has heard that such an investment would support the construction in Australia of large vessels, including the supply ships, and that long term dividends would result from such investment. By excluding Australian companies from the tender, the government has not allowed these matters, including the amount of investment required to upgrade current facilities and the long-term benefits of this investment, to be fully explored and contested.
The 2016 White Paper stated that "The surface fleet will be supported by two new replenishment vessels to be introduced into service by the early 2020s. These vessels will replace the current mixed fleet of one replenishment ship and one oiler which carries fuel only. A third replenishment or additional logistics vessel will follow in the late 2020s."
The new defence Integrated Investment Plan put the cost of the entire replacement supply ship program at $1 billion to $2bn, including long-term operations and sustainment. Navantia’s 19,500-tonne Cantabria-class replenishment vessels each cost about $350 million.
Defence Minister Marise Payne confirmed the decision to select Navantia as the preferred tenderer for the two new oil tankers, after Spanish media reported that officials in the shipbuilding town of Cadiz were celebrating the “historic” win. Minister for Defence Marise Payne – radio interview with Leon Byner FIVEaa Radio Adelaide on 11 March 2016 :
"When we were elected in 2013 it was already apparent that the supply vessels needed replacing, they are called the Sirius and the Success. That was already apparent. But nothing had been done about that in the preceding years of the previous government. Nothing.
"They had made an announcement at the death knell of their government in May to say that they would “at the earliest opportunity”, and I’m quoting, “replace Australia’s supply ships HMAS Success and HMAS Sirius. This will include examination of options for local, hybrid and overseas build or the leasing of an existing vessel.” But they did nothing.
"When we came to government at the end of 2013 and began to look at the needs for Navy in that particular regard, it was deemed a significant priority for Navy the Sirius and the Success were really at the end of their capable life and need replacing as a matter of priority.
"So, based on advice from Defence and based on the international experience of ships of this type, we gave first pass approval in June of 2014 for what was a limited tender between Navantia of Spain and Daewoo Shipbuilding in Korea for the construction of those ships.
The previous government commissioned a report which was called the 2013 Future Submarine Industry Skills Plan and it canvassed shipbuilding skills across the board and it told them, it told them, that the common user facility in Adelaide which supports your ASC, our ASC, was not capable of accommodating the large supply ships as the current shiplift would be required to be significantly lengthened in order to carry vessels the size of the replacement supply ships. They were told that in 2013 and they needed to be very clear, they should be very clear, with the public about why they are not telling the truth about that.
We’ve already committed to a continuous ship build in Australia, and a $30 billon order – or the order of $30 billion, in relation to the Future Frigates just for starters ...
The 2016 Integrated Investment Program (IIP) stated that the role of the potential third replenishment vessel is to “provide an assured [replenishment] capability to continuously generate one operationally available replenishment ship”. While the door has been left open for an additional logistic support vessel, perhaps similar to HMAS Choules, if it was a choice between greater support to the whole fleet and increased sea lift it would appear prudent, or arguably essential, for additional replenishment-at-sea capabilities.
Project SEA 1654 Phase 3 will deliver two Spanish designed Auxiliary Oiler Replenishment (AOR) ships similar to Cantabria by the early 2020s to replace the current fleet of one AOR, HMAS Success and one AO HMAS Sirius. Navy has a good understanding of Cantabria’s capabilities, as she conducted a year-long deployment to Australia in 2013 while HMAS Success was in an extended maintenance period.
It would therefore appear to be an obvious choice to order a third Cantabria from the running production line before the conclusion of the current project. This would deliver many advantages, including common training, common systems with other Navantia designed ships in the fleet, and provides the assured replenishment-at-sea capability Navy needs and Government demanded. The Australian Government accepted Defence’s recommendation to build the replenishment ships in Spain due to shipyard capacities and the ability to build the vessels in the required time without impacting future shipbuilding schedules.
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