The Australian Government has pledged $3.9 billion towards delivery of the new Submarine Construction Yard in Osborne.

Home of construction of Australia’s future SSN-AUKUS conventionally armed, nuclear-powered submarine fleet, projections show an estimated investment of $30 billion will be required over coming decades to build the yard, which will continue until the 2040s.

This projected investment is comprised of:

• Area 1 – approximately $5 billion for fabrication
• Area 2 – approximately $8 billion for outfitting
• Area 3 – more than $15 billion for consolidation, testing, launching and commissioning.

This is in addition to works that are already underway, including enabling works worth $2 billion and a Skills and Training Academy (STA) expected to cost approximately $500 million. More than 500 South Australians are already working on building the STA Campus and the Production Demonstration Facilities within the Submarine Construction Yard.

The total floor area of the new Submarine Construction Yard is expected to be 10 times larger than the existing Osborne South Development project that houses the existing Collins-class sustainment facilities and Hunter-class shipyard. Construction of the new shipyard is expected to use 66 million man hours – 44 times more than Osborne South – and to use 126,000 tonnes of structural steel.

Future investment decisions will be made as infrastructure needs are further defined, designs mature and licences are progressed across the yard including for consolidation, launch and commissioning facilities. These arrangements will be negotiated with Australian Naval Infrastructure (ANI) Pty Ltd, as the Government’s appointed design and delivery partner for the yard.

The funding commitment reinforces South Australia’s position as the nation’s home of submarine construction.

The investment will create thousands of jobs in South Australia with at least 4,000 workers who will design and build the submarine construction yard, and around 5,500 workers who will support nuclear-powered submarine production at its peak.

—

Photo: Osborne Naval Shipyard aerial view, artist impression